Kawabata, Yasushi (2014) Optimum-Welfare and Maximum-Revenue Tariffs in Vertically Related Markets. Modern Economy, 05 (05). pp. 589-597. ISSN 2152-7245
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Abstract
This paper compares the optimum-welfare tariffs with the maximum-revenue tariffs in a model of vertically related markets characterized by Cournot competition. It shows that the optimum-welfare tariff on the intermediate good exceeds the maximum-revenue tariff if the home intermediate-good firm is much more cost-competitive than the foreign intermediate-good firm. Further, the optimum-welfare tariff on the final good exceeds the maximum-revenue tariff if the home intermediate-good firm is significantly inefficient compared to the foreign intermediate-good firm. It is less likely that the optimum-welfare tariffs on the intermediate and the final good, respectively, exceed the maximum-revenue tariffs on the intermediate and the final good in the presence of vertical trade structures than in their absence.
Item Type: | Article |
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Subjects: | STM Digital Press > Multidisciplinary |
Depositing User: | Unnamed user with email support@stmdigipress.com |
Date Deposited: | 17 Jul 2023 05:43 |
Last Modified: | 07 Sep 2024 10:32 |
URI: | http://publications.articalerewriter.com/id/eprint/1298 |