IDEAS home Printed from https://ideas.repec.org/a/bla/scotjp/v53y2006i3p398-408.html
   My bibliography  Save this article

Optimum‐Welfare And Maximum‐Revenue Tariffs Under Bertrand Duopoly

Author

Listed:
  • Roger Clarke
  • David R. Collie

Abstract

This article derives the maximum‐revenue tariff and the optimum‐welfare tariff under Bertrand duopoly with differentiated products. It is shown that both tariffs are lower under Bertrand duopoly than under Cournot duopoly. Also, the optimum‐welfare tariff may exceed the maximum‐revenue tariff under both Bertrand duopoly and Cournot duopoly. This result is more likely the lower the costs of the home firm relative to the costs of the foreign firm, and the greater the degree of product substitutability. Also, it is shown that the optimum‐welfare tariff is less likely to exceed the maximum‐revenue tariff under Bertrand duopoly than under Cournot duopoly.

Suggested Citation

  • Roger Clarke & David R. Collie, 2006. "Optimum‐Welfare And Maximum‐Revenue Tariffs Under Bertrand Duopoly," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(3), pages 398-408, July.
  • Handle: RePEc:bla:scotjp:v:53:y:2006:i:3:p:398-408
    DOI: 10.1111/j.1467-9485.2006.00386.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-9485.2006.00386.x
    Download Restriction: no

    References listed on IDEAS

    as
    1. Collie, David R & Vandenbussche, Hylke, 2004. "Anti-Dumping Duties and the Byrd Amendment," CEPR Discussion Papers 4780, C.E.P.R. Discussion Papers.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. repec:ebl:ecbull:v:6:y:2008:i:38:p:1-8 is not listed on IDEAS
    3. David Collie & Roger Clarke, 2006. "Export Taxes under Bertrand Duopoly," Economics Bulletin, AccessEcon, vol. 6(6), pages 1-8.
    4. 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.
    5. Hiroshi Kurata, 2007. "Foreign equity caps under two types of competition: Bertrand and Cournot," Economics Bulletin, AccessEcon, vol. 6(21), pages 1-11.
    6. Keith Head & Barbara J. Spencer, 2017. "Oligopoly in international trade: Rise, fall and resurgence," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1414-1444, December.
    7. 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.
    8. 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.
    9. Collie, David R., 2018. "Maximum-Revenue Tariffs versus Free Trade," Cardiff Economics Working Papers E2018/8, Cardiff University, Cardiff Business School, Economics Section.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. Kangsik Choi & Seonyoung Lim, 2018. "Tariff protection and port privatization: An import-competing approach," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(2), pages 228-252, June.
    15. repec:ebl:ecbull:v:6:y:2007:i:21:p:1-11 is not listed on IDEAS
    16. 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.
    17. repec:ebl:ecbull:v:6:y:2006:i:6:p:1-8 is not listed on IDEAS
    18. 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.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:scotjp:v:53:y:2006:i:3:p:398-408. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley Content Delivery). General contact details of provider: http://edirc.repec.org/data/sesssea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.