[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/sae/amerec/v38y1994i2p36-39.html
   My bibliography  Save this article

Competition and the Equivalence of Tariffs and Quotas

Author

Listed:
  • Xiangqun Chen
Abstract
This paper considers the conditions under which tariffs and quotas are equivalent. I examine an oligopoly in which conjectural variations are consistent. I find that quotas eliminate competition from foreign firms, thus altering firms' conjectures, whereas tariffs do not. The results indicate that when the number of domestic firms is more than one, tariffs and quotas are equivalent only under constant marginal costs. When the number is one, they are generally not equivalent.

Suggested Citation

  • Xiangqun Chen, 1994. "Competition and the Equivalence of Tariffs and Quotas," The American Economist, Sage Publications, vol. 38(2), pages 36-39, October.
    • Handle: RePEc:sae:amerec:v:38:y:1994:i:2:p:36-39
    DOI: 10.1177/056943459403800204
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/056943459403800204
    Download Restriction: no
    File URL: https://libkey.io/10.1177/056943459403800204?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Martin K. Perry, 1982. "Oligopoly and Consistent Conjectural Variations," Bell Journal of Economics, The RAND Corporation, vol. 13(1), pages 197-205, Spring.
    2. Itoh, Motoshige & Ono, Yoshiyasu, 1984. "Tariffs vs. quotas under duopoly of heterogeneous goods," Journal of International Economics, Elsevier, vol. 17(3-4), pages 359-373, November.
    3. Robert C. Feenstra, 1988. "Quality Change Under Trade Restraints in Japanese Autos," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 103(1), pages 131-146.
    4. Motoshige Itoh & Yoshiyasu Ono, 1982. "Tariffs, Quotas, and Market Structure," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(2), pages 295-305.
    5. Hwang, Hong & Mai, Chao-cheng, 1988. "On the equivalence of tariffs and quotas under duopoly : A conjectural variation approach," Journal of International Economics, Elsevier, vol. 24(3-4), pages 373-380, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Okawa, Masayuki, 2006. "On the comparison of tariffs and quotas in oligopolistic intermediate goods markets," Japan and the World Economy, Elsevier, vol. 18(2), pages 169-180, March.
    2. Luca Lambertini & Arsen Palestini, 2018. "Voluntary Export Restraints in a Trade Model with Sticky Price: Linear and Nonlinear Feedback Solutions," Dynamic Games and Applications, Springer, vol. 8(3), pages 507-518, September.
    3. Hong Hwang & Cheng-Hau Peng & Hsiu-Ling Wu, 2013. "Tariffication and Welfare in a Differentiated Duopoly," The World Economy, Wiley Blackwell, vol. 36(7), pages 899-911, July.
    4. Mohammad Amin, 2004. "Market Structure and Trade Policy under Asymmetric Information," International Trade 0402004, University Library of Munich, Germany.
    5. Toshihiro Matsumura & Yasunori Okumura, 2014. "Comparison between specific taxation and volume quotas in a free entry Cournot oligopoly," Journal of Economics, Springer, vol. 113(2), pages 125-132, October.
    6. Okumura, Yasunori, 2015. "Volume and share quotas in Cournot competition," Economic Modelling, Elsevier, vol. 47(C), pages 137-144.
    7. Chen, Hung-Yi & Chang, Yang-Ming & Chiou, Jiunn-Rong, 2011. "A welfare analysis of tariffs and equivalent quotas under demand uncertainty: Implications for tariffication," International Review of Economics & Finance, Elsevier, vol. 20(4), pages 549-561, October.
    8. Krishna, Kala, 1989. "Trade restrictions as facilitating practices," Journal of International Economics, Elsevier, vol. 26(3-4), pages 251-270, May.
    9. Ning, Haokai, 2020. "On the Equivalence of Tariffs and Quotas with Incomplete Information," MPRA Paper 101512, University Library of Munich, Germany.
    10. Brander, James A., 1995. "Strategic trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 27, pages 1395-1455, Elsevier.
    11. Dockner, Engelbert J, 1992. "A Dynamic Theory of Conjectural Variations," Journal of Industrial Economics, Wiley Blackwell, vol. 40(4), pages 377-395, December.
    12. Kala Krishna, 1988. "What Do Voluntary Export Restraints Do?," NBER Working Papers 2612, National Bureau of Economic Research, Inc.
    13. Park, Chongkook, 1990. "Three essays on strategic trade policy: precommitment, time consistency, and effects of a ratio quota," ISU General Staff Papers 1990010108000010878, Iowa State University, Department of Economics.
    14. Taiji Furusawa & Keisaku Higashida & Jota Ishikawa, 2004. "Tariffs versus quotas in the presence of imperfect competition and cross‐border externalities," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(2), pages 445-458, May.
    15. Kala Krishna, 1990. "Export Restraints With Imperfect Competition: A Selective Survey," NBER Working Papers 3244, National Bureau of Economic Research, Inc.
    16. Mohd Amin, 2004. "Sensitivity of Tariffs and Quotas: A Signaling Game," International Trade 0401003, University Library of Munich, Germany.
    17. Holloway, Garth J., 1995. "Conjectural Variations With Fewer Apologies," Working Papers 225880, University of California, Davis, Department of Agricultural and Resource Economics.
    18. Raymond J. Deneckere & Dan Kovenock, 1988. "Capacity-Constrained Price Competition When Unit Costs Differ," Discussion Papers 861, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    19. Robert Z. Lawrence & Lawrence Edward, 2010. "Do Developed and Developing Countries Compete Head to Head in High Tech?," Working Paper Series WP10-8, Peterson Institute for International Economics.
    20. Jae W. Chung, 1998. "Effects of U.S. Trade Remedy Law Enforcement under Uncertainty: The Case of Steel," Southern Economic Journal, John Wiley & Sons, vol. 65(1), pages 151-159, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:amerec:v:38:y:1994:i:2:p:36-39. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://journals.sagepub.com/home/aex .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.