Competitive Domestic Purchase Requirement

Autor:	Samuel Häfner, Yvan Lengwiler
Rok vydání:	2018
Předmět:	Oligopoly Microeconomics Tariff-rate quota media_common.quotation_subject Oligopsony Tariff Business Welfare A share License Import quota media_common
Zdroj:	SSRN Electronic Journal.
ISSN:	1556-5068
DOI:	10.2139/ssrn.3293534
Popis:	We consider the problem of allocating a tariff-rate quota among a small number of firms which act as middlemen between competitive producers and atomistic consumers and can import a perfect substitute at a fixed world price. We compare the traditional license-on-demand regime to administer such quotas with a domestic purchase requirement under which each firm is allocated a share of the quota that corresponds to the share of the total quantity bought from domestic suppliers. We give conditions such that the domestic purchase requirement strictly welfare-dominates the license system. Moreover, we show that for any binding import quota the welfare maximizing number of firms is finite.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::4a3f351dc584ec1ae0918006306b8ca0 https://doi.org/10.2139/ssrn.3293534 Zobrazit plný text záznamu