RT Journal Article
T1 Second Best Trade Policies in Cournot Oligopoly
A1 Corchón, Luis C.
A1 González-Maestre, M.
AB In this paper we study the optimal import policy in an oligopolistic market with a given number of quantity-setting firms. In the absence of fixed costs, we show that if the policy instrument is an import quota, the optimal policy is either free trade or autarky, while if the instrument is a tariff the optimal policy is neither free trade nor autarky. In the case of fixed costs, we show that contrary to the traditional protectionist argument, a restrictive import policy might increase domestic welfare by increasing domestic consumers’ surplus, instead of increasing domestic profits.
PB Springer
SN 1435-5477
YR 2001
FD 2001
LK https://hdl.handle.net/10016/3794
UL https://hdl.handle.net/10016/3794
LA eng
DS e-Archivo
RD 3 may. 2024