Optimal Tariffs in the Presence of Middlemen
AbstractIn this paper, the authors examine the question of optimal tariffs when producers and sellers are different entities. A number of alternative market structures are considered. It is found that the sign of the optimal tariff may depend on the nature of the producer-seller relationship, viz., who the leader is. In particular, the authors find that the optimal tariff is negative when the only seller is the leader and there is only one foreign producer. There is also a case where it is optimal for the government of the home country to subsidize imports no matter who the leader is.
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Bibliographic InfoArticle provided by Canadian Economics Association in its journal Canadian Journal of Economics.
Volume (Year): 32 (1999)
Issue (Month): 1 (February)
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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4
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Other versions of this item:
- Lahiri, S. & Ono, Y., 1995. "Optimal Tariffs in the Presence of Middlemen," ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 0389, Institute of Social and Economic Research, Osaka University.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
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- Gjermund Nese & Odd Straume, 2007.
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- Marjit, Sugata & Mukherjee, Vivekananda, 2014. "Rent-Seeking and Reform: Relationship Revisited," MPRA Paper 56443, University Library of Munich, Germany.
- Takauchi, Kazuhiro, 2012. "International R&D Rivalry with a Shipping Firm," MPRA Paper 36843, University Library of Munich, Germany.
- Gjermund Nese & Odd Straume, 2007. "Industry Concentration and Strategic Trade Policy in Successive Oligopoly," Experimental Economics, Springer, Springer, vol. 7(1), pages 31-52, March.
- Shuichi Ohori, 2012. "Environmental Tax and Public Ownership in Vertically Related Markets," Journal of Industry, Competition and Trade, Springer, Springer, vol. 12(2), pages 169-176, June.
- Yoshiyasu Ono, 2006. "Protective Trade Policies 'Reduce' Employment: A Dynamic Optimization Approach," ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 0659, Institute of Social and Economic Research, Osaka University.
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