The importance of fixed costs in the design of trade policies: An exercise in the theory of second best

In this paper we study the optimal trade policy in an oligopolistic market with a given number of quantity-setter firms. It is shown that under no fixed costs, the optimal trade policy displays certain characteristics but under fixed costs most of these characteristics no Longer hold.

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Year of publication:	1994-09
Authors:	Corchón, Luis ; González-Maestre, Miguel
Institutions:	Instituto Valenciano de Investigaciones Económicas (IVIE)
Subject:	Optimal trade policy \| tariffs \| quotas

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Extent:	application/pdf
Series:	Working Papers. Serie AD.
Type of publication:	Book / Working Paper
Notes:	Published by Ivie 36 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008557132