TARIFF POLICY AND WELFARE IN AN INTERNATIONAL DUOPOLY WITH CONSUMER‐FRIENDLY INITIATIVE

Leonard F.S. Wang · Ya‐Chin Wang · Lihong Zhao

43 citations0/0 files storedBulletin of Economic Research

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Global trade and economics Merger and Competition Analysis Consumer Market Behavior and Pricing

Abstract

ABSTRACT The purpose of this paper is to explore how strategic tariff policy and welfare are affected by the consumer‐friendly initiative of foreign exporting firms. We define a firm that is consumer‐friendly or non‐profit‐based if it considers both its own profit and consumer surplus. This paper extends Brander and Spencer by taking the consideration of consumer‐friendly firms into an international duopoly, and within such context examining the tariff policy and welfare. The consumer‐friendly initiative that leads to trade liberalization is a ‘Win‐Win‐Win’ solution in the sense that it is not only beneficial for foreign exporting firms, but also for the government and consumers of the importing country.

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References

1985Multimarket Oligopoly: Strategic Substitutes and Complements 1985Export subsidies and international market share rivalry 1986Optimal Trade and Industrial Policy under Oligopoly 1982Tariff Protection and Imperfect Competition 1988Anti-dumping and countervailing duties under oligopoly 1998Tax competition in imperfectly competitive markets 1986Export Subsidies and High Productivity: Cause or Effect?1991Optimum Discriminatory Tariffs under Oligopolistic Competition

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2014Corporate Social Responsibility and International Competition: A Welfare Analysis 2018Tariffs and privatization policy in a bilateral trade with corporate social responsibility 2022International trade and environmental corporate social responsibility 2016Corporate social responsibility and downstream price competition with retailer's effort 2016Tariff induced licensing contracts, consumers’ surplus and welfare

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