Monopoly and trade policy

Abstract

This paper derives trade policy rankings for a country trading with a foreign monopoly firm. It characterizes the first-best policy under decreasing monopoly costs, and itdemonstrates that a minimum import requirement implements first-best trade only under constant monopoly costs. The paper shows further that a voluntary import expansion eliminates all gains from trading with the monopoly, and that all quotas and voluntary export restraints are equivalent. Finally, it establishes that a price ceiling and a minimum import requirement are equivalent when monopoly costs are constant or decreasing, but that their ranking is ambiguous when costs are increasing.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 24 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.