Negotiated tariffs in free entry oligopoly under integrated markets
AbstractUsing the Nash bargaining approach, this paper analyzes the negotiation of tariffs between two countries in free-entry oligopolies under integrated markets. Employing a symmetric model with linear demand and cost functions, the paper shows that for both countries Pareto-efficient negotiated tariffs are larger than the tariffs at the Nash equilibrium of a non-cooperative tariff game (tariff war) in which each country imposes its optimum tariff. Copyright Kluwer Academic Publishers 1991
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Bibliographic InfoArticle provided by Springer in its journal Open Economies Review.
Volume (Year): 2 (1991)
Issue (Month): 2 (June)
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Web page: http://www.springerlink.com/link.asp?id=100323
negotiated tariffs; free entry oligopoly; integrated markets;
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