The ranking of alternative tariff and quota policies in the presence of domestic monopoly
Journal Article (Journal Article)
Bhagwati demonstrated the nonequivalence between tariffs and quotas in the presence of monopoly. This paper also assumes domestic production to be monopolized and shows that giving import licenses or tariff revenues to the domestic producer may raise or lower the welfare cost of protection and the price paid by consumers from the price under other tariff and quota arrangements which maintain the same market share for the domestic producer. However, if the monopolist realizes that commercial policy is an instrument used to maximize the policymaker's welfare function, instead of being a goal in itself, the equivalence of tariffs and quotas re-emerges. © 1977.
Full Text
Duke Authors
Cited Authors
- Sweeney, RJ; Tower, E; Willett, TD
Published Date
- January 1, 1977
Published In
Volume / Issue
- 7 / 4
Start / End Page
- 349 - 362
International Standard Serial Number (ISSN)
- 0022-1996
Digital Object Identifier (DOI)
- 10.1016/0022-1996(77)90052-6
Citation Source
- Scopus