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Tariffication of Tariff Rate Quotas under oligopolistic competition: the case of the EU import regimes for bananas

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  • Margherita Scoppola

    (Università di Macerata)

Abstract

The paper develops a two-stage capacity constrained duopoly model, in which the mode of competition is endogenous and the constraint is exible, to investigate the impact of Tari Rate Quotas (TRQs) and their liberalization. The model predicts that the greater the gap between the price of the licences plus the in-quota tari and the out-of-quota tari , the closer the outcome of the game to the pure Cournot outcome. The tari equivalent changes according to the prevailing mode of competition under the TRQ. The model is used to address the issue of the tariffication of the non-ACP TRQ for EU banana imports. The results suggest that under the TRQ rms competed on quantity and that the tari equivalent is higher than the tariff introduced by the EU in 2006.

Suggested Citation

  • Margherita Scoppola, 2008. "Tariffication of Tariff Rate Quotas under oligopolistic competition: the case of the EU import regimes for bananas," Working Papers 16-2008, Macerata University, Department of Studies on Economic Development (DiSSE), revised Jan 2010.
  • Handle: RePEc:mcr:wpaper:wpaper00016
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    Cited by:

    1. Anania, Giovanni, 2010. "EU Economic Partnership Agreements and WTO negotiations. A quantitative assessment of trade preference granting and erosion in the banana market," Food Policy, Elsevier, vol. 35(2), pages 140-153, April.

    More about this item

    Keywords

    tariff rate quota; bananas; oligopoly;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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