Food Supply Management and Tariffication: A Game Theoretic Approach
We compare the current Canadian supply management regime in which producers and importers benefit from rent-seeking activities that set production quota and import quota levels with those under a tariff, in which producers partakes in rent-seeking activities in order to induce the government to introduce a favorable tariff regime. We explore two different quota-setting games: (1) the import quota and production quota are set at a level that arises from a Cournot-Nash equilibrium between producers and importers; and (2) the producer marketing board acts as a Stackelberg leader, taking into account the importers reaction to its production quota level. We compare these quota-setting games with two different tariff-setting games: (1) A non-cooperative game in which the government sets the tariff at a level that maximizes tariff revenue; and (2) A cooperative game in which producers, through rent-seeking activities, induce the government to set the tariff at a level that maximizes joint government and producer rents.
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Volume (Year): 1 (2002)
Issue (Month): 1 (October)
Pages: 1-21
| Handle: | RePEc:bpj:bjafio:v:1:y:2002:i:1:n:4 |
| Contact details of provider: | Web page: https://www.degruyter.com
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Andrew Schmitz & Troy G. Schmitz, 1994. "Supply Management: The Past and Future," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 42(2), pages 125-148, 07.
- Schmitz, Troy G., 2002. "Measuring Inefficiency in the Presence of an Export Tax, an Import Tariff, and a State Trading Enterprise," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 34(01), pages 81-93, April.
- Giancarlo Moschini & Karl D. Meilke, 1991.
"Tariffication with Supply Management: The Case of the U.S.-Canada Chicken Trade,"
Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie,
Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 39(1), pages 55-68, 03.
- Moschini, GianCarlo & Meilke, Karl D., 1991. "Tariffication with Supply Management: The Case of the U.S.-Canadian Chicken Trade," Staff General Research Papers Archive 821, Iowa State University, Department of Economics.
- GianCarlo Moschini & Karl D. Meilke, 1991. "Tariffication with Supply Management: The Case of the U.S.-Canadian Chicken Trade," Center for Agricultural and Rural Development (CARD) Publications 90-gatt2, Center for Agricultural and Rural Development (CARD) at Iowa State University.
- Moschini, GianCarlo & Mehrkens, Joseph, 1991. "Tariffication with Supply Management: The Case of the U.S.-Canada Chicken Trade," Staff General Research Papers Archive 12750, Iowa State University, Department of Economics.
- GianCarlo Moschini & Karl D. Meilke, 1991. "Tariffication with Supply Management: The Case of the U.S.-Canadian Chicken Trade," Food and Agricultural Policy Research Institute (FAPRI) Publications 90-gatt2, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
- Andrew Schmitz, 1983. "Supply Management in Canadian Agriculture: An Assessment of the Economic Effects," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 31(2), pages 135-152, 07.
- Richard Harris, 1985. "Why Voluntary Export Restraints Are 'Voluntary.'," Canadian Journal of Economics, Canadian Economics Association, vol. 18(4), pages 799-809, November.
- Richard Harris, 1984. "Why Voluntary Export Restraints are 'Voluntary'," Working Papers 559, Queen's University, Department of Economics.
- James Vercammen & Andrew Schmitz, 1992. "Supply Management and Import Concessions," Canadian Journal of Economics, Canadian Economics Association, vol. 25(4), pages 957-971, November.
- Schmitz, Troy G., 2002. "Measuring Inefficiency In The Presence Of An Export Tax, An Import Tariff, And A State Trading Enterprise," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(01), April.
- Rachel McCulloch, 1973. "When Are a Tariff and a Quota Equivalent:," Canadian Journal of Economics, Canadian Economics Association, vol. 6(4), pages 503-511, November. Full references (including those not matched with items on IDEAS)
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