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Title: |
Tariffs versus Quotas in a Differentiated Products Market: A Conjectural
Variations in Prices Approach |
| Author: |
Karikari, John
A. |
| Author
Affiliation: |
U Tulsa |
| Source: |
International Economic Journal, Spring 1996, v. 10, no. 1, pp. 47-57 |
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Publication Date: |
Spring 1996 |
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Abstract: |
This paper examines the (non)equivalence
of a tariff and a quota set at the level of imports generated by the
tariff using a conjectural variations in prices model. It extends
previous studies by considering a variety of firm behavior patterns in
the tariff equilibrium and when the imports and the domestic products
are complements. The results obtained encompass most of the previous
results. In addition, for complements, replacing a tariff with a quota
has opposite effects on the prices of two products. Also, the prices
under tariffs and quotas are not necessarily equivalent for complements. |
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