PERFORMANCE CONTINGENT PROTECTION

Published

Journal Article

In this paper we ask how to construct a tariff or quota schedule which depends on the behavior of a domestic monopsonistic monopolist in order to achieve the best tradeoff between two objectives of a government. We consider various political and economic tradeoffs which could face the policy maker: aggregate welfare versus industry profits, output and imports; and trade barrier revenue versus industry profits and domestic price. In all cases considered, performance contingent protection which takes the form either of a tariff which depends on domestic output or a quota which depends on the price charged is generally superior to a fixed tariff or quota and is sufficient to achieve optimality. Copyright © 1989, Wiley Blackwell. All rights reserved

Full Text

Duke Authors

Cited Authors

  • Kaempfer, WH; Tower, E; Willett, TD

Published Date

  • January 1, 1989

Published In

Volume / Issue

  • 1 / 3

Start / End Page

  • 261 - 275

Electronic International Standard Serial Number (EISSN)

  • 1468-0343

International Standard Serial Number (ISSN)

  • 0954-1985

Digital Object Identifier (DOI)

  • 10.1111/j.1468-0343.1989.tb00017.x

Citation Source

  • Scopus