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Volume and share quotas in Cournot competition

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  • Okumura, Yasunori

Abstract

In this paper, we theoretically discuss volume and share quotas in the market where firms engage in Cournot competition. We show the equivalence among specific taxes, and volume quotas and share quotas with respect to equilibrium quantities. By using these results, we analyze comparative statics effects of volume and share quotas. Further, we apply the results to the examination of international oligopoly models with tariffs, import volume quotas, and import share quotas. Finally, we extend the model to endogenize the set of firms and derive a non-equivalence result of volume quotas and specific taxes.

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  • Okumura, Yasunori, 2015. "Volume and share quotas in Cournot competition," Economic Modelling, Elsevier, vol. 47(C), pages 137-144.
    • Handle: RePEc:eee:ecmode:v:47:y:2015:i:c:p:137-144
    DOI: 10.1016/j.econmod.2015.02.026
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    Cited by:

    1. Susumu Cato, 2017. "The optimal tariff structure and foreign penetration," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 24(1-2), pages 83-94, April.
    2. Okumura, Yasunori, 2016. "Individual transferable quotas in Cournot competition," Economic Modelling, Elsevier, vol. 55(C), pages 315-321.
    3. Yasunori Okumura, 2017. "Asymmetric equilibria under price cap regulation," Journal of Economics, Springer, vol. 121(2), pages 133-151, June.
    4. Abbassi, Abdessalem & Tamini, Lota D. & Dakhlaoui, Ahlem, 2015. "Import quota allocation between regions under Cournot competition," Economic Modelling, Elsevier, vol. 51(C), pages 484-490.

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