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Tariffication of Tariff Rate Quotas under oligopolistic competition: the case of the EU import regimes for bananas

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Author Info

  • Margherita Scoppola

    (Università di Macerata)

Abstract

The paper develops a two-stage capacity constrained duopoly model, in which the mode of competition is endogenous and the constraint is exible, to investigate the impact of Tari Rate Quotas (TRQs) and their liberalization. The model predicts that the greater the gap between the price of the licences plus the in-quota tari and the out-of-quota tari , the closer the outcome of the game to the pure Cournot outcome. The tari equivalent changes according to the prevailing mode of competition under the TRQ. The model is used to address the issue of the tariffication of the non-ACP TRQ for EU banana imports. The results suggest that under the TRQ rms competed on quantity and that the tari equivalent is higher than the tariff introduced by the EU in 2006.

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Bibliographic Info

Paper provided by Macerata University, Department of Studies on Economic Development (DiSSE) in its series Working Papers with number 16-2008.

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Date of creation: Jun 2008
Date of revision: Jan 2010
Handle: RePEc:mcr:wpaper:wpaper00016

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Related research

Keywords: tariff rate quota; bananas; oligopoly;

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Cited by:
  1. Anania, Giovanni, 2010. "EU Economic Partnership Agreements and WTO negotiations. A quantitative assessment of trade preference granting and erosion in the banana market," Food Policy, Elsevier, vol. 35(2), pages 140-153, April.

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