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Commercial Policy and Imperfect Discrimination by a Foreign Monopolis t

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  • Donnenfeld, Shabtai

Abstract

This paper examines the effects of commercial policy and the qualit y of imports that are supplied by a multiproduct foreign monopolist. Th e author finds that a specific quota on some imported products leads to upgrading of the quality of imports and enhances national welfare. A specific tariff, which does not lead to a decrease in the varieties of imported products , does not affect the quality of imports and result s in enhanced national welfare. In contrast, an ad valorem tariff leads to lower qualities of imported goods and lowers consumer surplus. A general quota is undesirable since it results in a lower quality of imports and lower national warfare. Copyright 1988 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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  • Donnenfeld, Shabtai, 1988. "Commercial Policy and Imperfect Discrimination by a Foreign Monopolis t," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(4), pages 607-620, November.
  • Handle: RePEc:ier:iecrev:v:29:y:1988:i:4:p:607-20
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    Cited by:

    1. María del Carmen García-Alonso, 2000. "Security and Price Arbitrage," Studies in Economics 0002, School of Economics, University of Kent.
    2. Santiago J. Rubio & María Dolores Alepuz, 2005. "Foreign Monopolies And Tariff Agreements Under Integrated Markets," Working Papers. Serie AD 2005-38, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

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