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Tariff Policy and Imperfect Competition

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  • Myles, Gareth D

Abstract

A general equilibrium model of trade with imperfect competition is presented and the existence of an equilibrium is proved. Trade policy is discussed and welfare-improving policy characterized. A contrast is drawn between these results and partial equilibrium analysis conducted with constant factor prices. It is shown that circumstances exist in which partial equilibrium analysis leads to incorrect policy recommendations and an example is given to illustrate this. Extensions to the model and application of these results are discussed. Copyright 1991 by Blackwell Publishers Ltd and The Victoria University of Manchester

Suggested Citation

  • Myles, Gareth D, 1991. "Tariff Policy and Imperfect Competition," The Manchester School of Economic & Social Studies, University of Manchester, vol. 59(1), pages 24-44, March.
    • Handle: RePEc:bla:manch2:v:59:y:1991:i:1:p:24-44
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    Cited by:

    1. Collie, David, 1992. "International Trade and Cournot Equilibrium: Existence, Uniqueness and Comparative Statics," Bulletin of Economic Research, Wiley Blackwell, vol. 44(1), pages 55-66, January.

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