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Import Quota Licenses and Market Power

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  • Steve McCorriston
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    Abstract

    Analyses of import quota regimes typically ignore institutional features under which the quota licenses are administered. However, distributing the bulk of import licenses to a small number of firms can create oligopsony power and hence affect the level of quota rent and the potential success of auctioning licenses. In this paper I test formally for this phenomenon in the U.S. dairy import quota regime. Results suggest that the administration of import licenses for cheese creates oligopsony power for U.S. cheese importing firms. Copyright 1996, Oxford University Press.

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    Bibliographic Info

    Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

    Volume (Year): 78 (1996)
    Issue (Month): 2 ()
    Pages: 367-372

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    Handle: RePEc:oup:ajagec:v:78:y:1996:i:2:p:367-372

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    Cited by:
    1. Anania, Giovanni, 2002. "Gains from Trade Liberalization with Imperfectly Competitive World Markets. A Note," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24971, European Association of Agricultural Economists.
    2. Robert Jörin & Yvan Lengwiler, 2004. "Learning from Financial Markets: Auctioning Tariff-Rate Quotas in Agricultural Trade," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 140(IV), pages 521-541, December.
    3. Janda, Karel, 2009. "Signaling the Strength of a Market Entrant," MPRA Paper 17007, University Library of Munich, Germany.
    4. van Berkum, Siemen & van Meijl, Hans, 2000. "The application of trade and growth theories to agriculture: a survey," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(4), December.
    5. Joerin, Robert, 2001. "The Impact Of Tariff-Rate Quotas And Imperfect Competition On Market Access," International Trade in Livestock Products Symposium, January 18-19, 2001, Auckland, New Zealand 14556, International Agricultural Trade Research Consortium.
    6. Gast, Michael W., 2002. "Zollkontingente bei US-amerikanischen Käseimporten," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 51(4).

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