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Tariff Policy and Imperfect Competition

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  • Myles, G. D.

Abstract

A general equilibrium model of international trade with imperfect competition is presented and the existence of an equilibrium established. The model is applied to the analysis of tariff policy and conditions are derived under which factor price effects strengthen existing partial equilibrium arguments for tariffs. Nash equilibrium and collusive tariff setting are also analysed; collusive tariffs are lower provided there are no negative price effects linking the countries.

Suggested Citation

  • Myles, G. D., 1988. "Tariff Policy and Imperfect Competition," Economic Research Papers 268332, University of Warwick - Department of Economics.
    • Handle: RePEc:ags:uwarer:268332
    DOI: 10.22004/ag.econ.268332
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    Cited by:

    1. Collie, David, 1992. "International Trade and Cournot Equilibrium: Existence, Uniqueness and Comparative Statics," Bulletin of Economic Research, Wiley Blackwell, vol. 44(1), pages 55-66, January.

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