| Publications [#239144] of Edward Tower
search www.econ.duke.edu.Journal Articles
- Tower, E, On the best use of trade controls in the presence of foreign market power,
Journal of International Economics, vol. 15 no. 3-4
(January, 1983),
pp. 349-365, Elsevier BV, ISSN 0022-1996 [doi]
(last updated on 2024/08/25)
Abstract: This paper derives optimum tariffs for a country whose trading partner always exploits its own market power but assumes naively that the home country will leave its restriction unchanged. It then shows that a country which is a monopolist or monopsonist will always prefer its best price limit (price floor or ceiling) to its best tariff and prefer free trade to any quota. However, a duopsonist or duopolist will prefer its best quota to its best tariff and free trade to any price limit. Finally, the best import or export tariff of a country which fears retaliation may be negative. © 1983 Elsevier Science Publishers B.V. (North-Holland).
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