Work

Trade liberalization in oligopolistic industries

Year: 1986

Type: article

Abstract: This paper analyzes the short- and long-run effects on domestic price and output of partially liberalizing quota restrictions in a general model of oligopolistic interactions. It is shown that perverse outcomes are possible in a number of cases, including that of rational conjectures. A larger quota may result in an increase in domestic output in the short run and a higher price in the long run. The relationship between oligopolistic conjectures and the number of firms in the industry is critical in determining the long-run outcome.

Source: Journal of International Economics

DOI: 10.1016/0022-1996(86)90061-9

Authors: Edward F. Buffie, Pablo T. Spiller

Institutions: University of Pennsylvania, Hoover Institution

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $4,300