Transferable Licenses vs. Nontransferable Licences: What Is the Difference?

This paper questions the presumption that transferable quota licenses are worth more and result in higher welfare. We show that the price of a transferable license will tend to be higher than of its nontransferable counterpart only if the underlying quota is quite restrictive.

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Year of publication:	1996
Authors:	Krishna, K. ; Tan, L.H.
Institutions:	Department of Economics, Pennsylvania State University
Subject:	ENTERPRISES \| PRODUCTION

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Series:	Pennsylvania State - Department of Economics.
Type of publication:	Book / Working Paper
Notes:	32 pages
Classification:	D40 - Market Structure and Pricing. General ; D45 - Rationing; Licensing
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005777097