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Inter-temporal Price Discrimination when Imports are Restricted by Quotas

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  • HOLLANDER, Abraham
  • MACDISSI, Charbel
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    Abstract

    A dominant firm holding import quota engages in inter-temporal price discrimination when facing a competitive fringe engaged in seasonal production. This causes a welfare loss that comes in addition the loss attributable to limitation of imports below the free trade level.

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    File URL: http://hdl.handle.net/1866/483
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    Bibliographic Info

    Paper provided by Universite de Montreal, Departement de sciences economiques in its series Cahiers de recherche with number 2003-02.

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    Length: 10 pages
    Date of creation: 2003
    Date of revision:
    Handle: RePEc:mtl:montde:2003-02

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    Keywords: quota; monoly; discrimination; dominance; dynamic;

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    1. Anderson, James E., 1987. "Quotas as options: Optimality and quota license pricing under uncertainty," Journal of International Economics, Elsevier, vol. 23(1-2), pages 21-39, August.
    2. Krishna, Kala & Tan, Ling Hui, 1996. "The dynamic behavior of quota license prices," Journal of Development Economics, Elsevier, vol. 48(2), pages 301-321, March.
    3. Arye L. Hillman & Edward Tower & Gideon Fishelson, 1980. "On Water in the Quota," Canadian Journal of Economics, Canadian Economics Association, vol. 13(2), pages 310-17, May.
    4. Miyagiwa, Kaz & Ohno, Yuka, 2001. "Quota-Induced Cycles," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(2), pages 451-72, May.
    5. Kala Krishna, 1985. "Trade Restrictions as Facilitating Practices," NBER Working Papers 1546, National Bureau of Economic Research, Inc.
    6. Richard Harris, 1985. "Why Voluntary Export Restraints Are 'Voluntary.'," Canadian Journal of Economics, Canadian Economics Association, vol. 18(4), pages 799-809, November.
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