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Inter-temporal Price Discrimination when Imports are Restricted by Quotas

Author

Listed:
  • HOLLANDER, Abraham
  • MACDISSI, Charbel

Abstract

A dominant firm holding import quota engages in inter-temporal price discrimination when facing a competitive fringe engaged in seasonal production. This causes a welfare loss that comes in addition the loss attributable to limitation of imports below the free trade level.

Suggested Citation

  • HOLLANDER, Abraham & MACDISSI, Charbel, 2003. "Inter-temporal Price Discrimination when Imports are Restricted by Quotas," Cahiers de recherche 2003-02, Universite de Montreal, Departement de sciences economiques.
    • Handle: RePEc:mtl:montde:2003-02
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    File URL: http://hdl.handle.net/1866/483
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    References listed on IDEAS

    as
    1. Miyagiwa, Kaz & Ohno, Yuka, 2001. "Quota-Induced Cycles," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(2), pages 451-472, May.
    2. Krishna, Kala & Tan, Ling Hui, 1996. "The dynamic behavior of quota license prices," Journal of Development Economics, Elsevier, vol. 48(2), pages 301-321, March.
    3. Richard Harris, 1985. "Why Voluntary Export Restraints Are 'Voluntary.'," Canadian Journal of Economics, Canadian Economics Association, vol. 18(4), pages 799-809, November.
    4. Anderson, James E., 1987. "Quotas as options: Optimality and quota license pricing under uncertainty," Journal of International Economics, Elsevier, vol. 23(1-2), pages 21-39, August.
    5. Krishna, Kala, 1989. "Trade restrictions as facilitating practices," Journal of International Economics, Elsevier, vol. 26(3-4), pages 251-270, May.
    6. Arye L. Hillman & Edward Tower & Gideon Fishelson, 1980. "On Water in the Quota," Canadian Journal of Economics, Canadian Economics Association, vol. 13(2), pages 310-317, May.
    7. Gene M. Grossman (ed.), 1992. "Imperfect Competition and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262570939, December.
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    Keywords

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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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