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 InfoPaper provided by Institute of Social and Economic Research, Osaka University in its series ISER Discussion Paper with number 0389.
Length: 17 pages
Date of creation: 1995
Date of revision:
TARIFFS; INTERNATIONAL TRADE; TRADE;
Other versions of this item:
- F10 - International Economics - - Trade - - - General
- 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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- Yoshiyasu Ono, 2006. "Protective Trade Policies 'Reduce' Employment: A Dynamic Optimization Approach," ISER Discussion Paper 0659, Institute of Social and Economic Research, Osaka University.
- Takauchi, Kazuhiro, 2012. "International R&D Rivalry with a Shipping Firm," MPRA Paper 36843, University Library of Munich, Germany.
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