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Effects of Tariff on International Mixed Duopoly with Several Markets

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  • Koji Okuguchi

Abstract

First, we formulate international multi-market mixed duopoly consisting of one labor-managed firm (economy) and one profit-maximizing firm (economy), which is shown to have a unique Cournot equilibrium under a set of reasonable assumptions. Second, we examine the effects of the LME´s tariff imposed on its imports from the PME. We find that the tariff has ambiguous effects on both LME´s and PME´s equilibrium total outputs. This result is in sharp contrast with the one obtained for international multi-market duopoly comprising two profit-maximizing firms with decreasing marginal costs.

Suggested Citation

  • Koji Okuguchi, 1995. "Effects of Tariff on International Mixed Duopoly with Several Markets," CESifo Working Paper Series 93, CESifo.
    • Handle: RePEc:ces:ceswps:_93
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    Cited by:

    1. Takeshi Yamazaki, 2016. "On the Works of Professor Koji Okuguchi," Springer Series in Game Theory, in: Pierre von Mouche & Federico Quartieri (ed.), Equilibrium Theory for Cournot Oligopolies and Related Games, pages 7-13, Springer.

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