Konieczny, Jerzy D; Waschik, Robert G - In: Review of International Economics 7 (1999) 4, pp. 590-96
The paper provides a novel (and old) argument for the nonequivalence of tariffs and quotas, based on the famous paper by Hotelling published in 1931. Unlike tariffs, quantitative restrictions are inherently dynamic. As long as the foreign exporter earns positive marginal profits, he raises their...