Voluntary Export Restraints and Expectations: An Analysis of Export Quotas in Oligopolistic Markets
The frequency of export quotas imposed as voluntary export restraints has been increasing. This tends to create the expectation that similar export quotas will be imposed in the future, even if free trade is allowed now. The author analyzes the effect of such an expectation. He demonstrates that if a quota is expected to be imposed on foreign exporting firms, it intensifies the exporting firms' competition in the prequota period. This offsets the protection which the export quota, as a voluntary export restraint, will provide for domestic import-competing firms in the future quota period. Copyright 1989 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
Volume (Year): 30 (1989)
Issue (Month): 4 (November)
|Contact details of provider:|| Postal: |
Phone: (215) 898-8487
Fax: (215) 573-2057
Web page: http://www.econ.upenn.edu/ier
More information through EDIRC
|Order Information:|| Web: http://www.blackwellpublishing.com/subs.asp?ref=0020-6598 Email: |
When requesting a correction, please mention this item's handle: RePEc:ier:iecrev:v:30:y:1989:i:4:p:707-23. 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-Blackwell Digital Licensing)or ()
If references are entirely missing, you can add them using this form.