IDEAS home Printed from https://ideas.repec.org/a/jns/jbstat/v219y1999i3-4p438-457.html
   My bibliography  Save this article

On the Impact of Import Quotas on a Quantity-Fixing Cartel in a Two-Country-Setting / Der Einfluß von Importquoten auf die Stabilität eines Mengenkartells – Eine Analyse im Rahmen eines Zwei-Länder-Modells

Author

Listed:
  • Matschke Xenia

    (30-F University Houses, Madison WI 53705, USA)

Abstract

In a static supergame context, a model is presented in which a foreign and a domestic firm form a cartel for selling a homogeneous good. In order to maximize joint cartel profit, the two firms have agreed to restrict sales to their own home market. Due to transfer costs, this market split paretodominates other cartel solutions. Side payments are assumed to be feasible. The introduction of an import quota may affect cartel stability as measured by a so-called critical interest rate. The two-country setting and the feasibility of side payments lead to results very different from previous findings that mild import regulations foster cartelization whereas severe restrictions destabilize quantity-setting cartels.

Suggested Citation

  • Matschke Xenia, 1999. "On the Impact of Import Quotas on a Quantity-Fixing Cartel in a Two-Country-Setting / Der Einfluß von Importquoten auf die Stabilität eines Mengenkartells – Eine Analyse im Rahmen eines Zwei-Länder-Mo," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 219(3-4), pages 438-457, June.
  • Handle: RePEc:jns:jbstat:v:219:y:1999:i:3-4:p:438-457
    as

    Download full text from publisher

    File URL: https://www.degruyter.com/view/j/jbnst.1999.219.issue-3-4/jbnst-1999-3-413/jbnst-1999-3-413.xml?format=INT
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Philipp J. H. Schröder, 2007. "Cartel Stability and Economic Integration," Review of International Economics, Wiley Blackwell, vol. 15(2), pages 313-320, May.

    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:jns:jbstat:v:219:y:1999:i:3-4:p:438-457. 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: (Peter Golla). General contact details of provider: https://www.degruyter.com .

    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.

    We have no references for this item. You can help adding them by using 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.