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Optimum Welfare and Maximum Revenue Tariffs under Oligopoly

Author

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  • Collie, David

Abstract

A well-known proposition in conventional trade theory, H. G. Johnson (1951-52), is that the maximum revenue tariff exceeds the optimum welfare tariff. The purpose of this paper is to show that under oligopoly the optimum welfare tariff may exceed the maximum revenue tariff due to the profit-shifting effect. Copyright 1991 by Scottish Economic Society.

Suggested Citation

  • Collie, David, 1991. "Optimum Welfare and Maximum Revenue Tariffs under Oligopoly," Scottish Journal of Political Economy, Scottish Economic Society, vol. 38(4), pages 398-401, November.
  • Handle: RePEc:bla:scotjp:v:38:y:1991:i:4:p:398-401
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    Cited by:

    1. Collie, David R. & Vandenbussche, Hylke, 2006. "Tariffs and the Byrd amendment," European Journal of Political Economy, Elsevier, vol. 22(3), pages 750-758, September.
    2. Dinlersoz, Emin & Dogan, Can, 2010. "Tariffs versus anti-dumping duties," International Review of Economics & Finance, Elsevier, vol. 19(3), pages 436-451, June.
    3. Clarke, Roger & Collie, David R., 2006. "Maximum-Revenue versus Optimum-Welfare Export Taxes," Cardiff Economics Working Papers E2006/22, Cardiff University, Cardiff Business School, Economics Section.
    4. repec:ebl:ecbull:v:6:y:2008:i:38:p:1-8 is not listed on IDEAS
    5. Leonard Wang & Jen-yao Lee & Chin-shu Huang, 2012. "Maximum-Revenue and Optimum-Welfare Tariffs in International Mixed Duopoly: Does the Order of Firms’ Move Matter?," Journal of Industry, Competition and Trade, Springer, vol. 12(3), pages 273-283, September.
    6. Leonard F.S. Wang & Jean Wang & Jen-Yao Lee, 2010. "Optimum-Welfare And Maximum-Revenue Tariffs In Mixed Oligopoly With Foreign Competitors," Australian Economic Papers, Wiley Blackwell, vol. 49(1), pages 60-72, March.
    7. David Collie & Roger Clarke, 2006. "Export Taxes under Bertrand Duopoly," Economics Bulletin, AccessEcon, vol. 6(6), pages 1-8.
    8. J. Peter Neary, 2016. "International Trade in General Oligopolistic Equilibrium," Review of International Economics, Wiley Blackwell, vol. 24(4), pages 669-698, September.
    9. Leonard F. S. Wang & Wei Zhao & Ya -Chin Wang, 2008. "Strategic Trade Policy in Bargaining over Managerial Delegation Competition," Economics Bulletin, AccessEcon, vol. 6(38), pages 1-8.
    10. Wang, Leonard F.S. & Lee, Jen-yao, 2014. "Ranking the optimum tariff and the maximum revenue tariff in vertically related markets," Research in Economics, Elsevier, vol. 68(3), pages 222-229.
    11. Dermot Leahy & J. Peter Neary, 2010. "Oligopoly And Trade," Economics, Finance and Accounting Department Working Paper Series n215-10.pdf, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
    12. Xu, Lili & Lee, Sang-Ho & Wang, Leonard, 2017. "Strategic Trade and Privatization Policies in Bilateral Mixed Markets," MPRA Paper 80340, University Library of Munich, Germany.
    13. Masayuki Okawa & Tatsuya Iguchi, 2016. "Welfare-improving Coordinated Tariff and Sales Tax Reforms under Imperfect Competition," Review of Development Economics, Wiley Blackwell, vol. 20(2), pages 475-487, May.
    14. Roger Clarke & David R. Collie, 2008. "Maximum-revenue versus Optimum-welfare Export Taxes: a Delegation Game," Review of International Economics, Wiley Blackwell, vol. 16(5), pages 919-929, November.
    15. Leonard Wang & Ya-Chin Wang & Lihong Zhao, 2009. "Market Share Delegation and Strategic Trade Policy," Journal of Industry, Competition and Trade, Springer, vol. 9(1), pages 49-56, March.
    16. Wang, Leonard F.S. & Lee, Jen-Yao, 2012. "Domestic entry, optimum-welfare and maximum-revenue tariffs," Research in Economics, Elsevier, vol. 66(1), pages 106-109.
    17. repec:ebl:ecbull:v:6:y:2006:i:6:p:1-8 is not listed on IDEAS

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