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Title: |
Tariffs and the Uniqueness of Nash-Cournot
Equilibrium |
| Author: |
Brown, Murray;
Lee, Sanghack |
| Author
Affiliation: |
SUNY, Buffalo;
Kookmin U |
| Source: |
International Economic Journal, Spring 1993, v. 7, no. 1, pp. 1-12 |
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Publication Date: |
Spring 1993 |
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Abstract: |
Different stability conditions in an
oligopolistic trade model have nontrivial consequences for commercial
policy. Applying Hahn's stability condition to an oligopolistic trade
model, the received literature concludes that optimal noncooperative
tariffs are positive and that noncooperative tariffs are higher than
those obtained when economies containing the oligopolies are integrated.
In the present paper, it is shown that less restrictive uniqueness
conditions--the Gale-Nikaido univalence condition and the still weaker
Index uniqueness condition--alter these results significantly. For
certain empirical environments, the weak stability conditions allow us
to justify non-intervention policy; and optimal trade policy can even
include import subsidies for Nash-Cournot oligopolies. |
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