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Bilateral Quota Wars

Author

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  • Constantinos Syropoulos
  • Elias Dinopoulos
  • Mordechai E. Kreinin

Abstract

In this paper, the authors employ a three-country, two-good, general equilibrium model to analyze bilateral quota wars. It is shown that the presence of a third country or a number of countries that trade freely leads to fundamentally different results of retaliation: bilateral quota wars need not eliminate either multilateral or bilateral trade flows. This result generates several interesting implications for the ranking of policy instruments and the likelihood of winning trade wars.

Suggested Citation

  • Constantinos Syropoulos & Elias Dinopoulos & Mordechai E. Kreinin, 1995. "Bilateral Quota Wars," Canadian Journal of Economics, Canadian Economics Association, vol. 28(4a), pages 939-944, November.
    • Handle: RePEc:cje:issued:v:28:y:1995:i:4a:p:939-44
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    Cited by:

    1. Mordechal Kreinin & Elias Dinopoulos, 1995. "Protection of industry," Open Economies Review, Springer, vol. 6(2), pages 179-196, April.
    2. PERJU, Genoveva Elena, 2009. "Retaliatory disagreement point with asymmetric countries. Evidence from European wine sector during enlargement," MPRA Paper 17757, University Library of Munich, Germany, revised 03 Oct 2009.

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