This paper deals with the effect of trade restrictions on competition in oligopolistic markets. Quantitative restrictions, such as VER's (Voluntary Export Restrictions) are shown to affect the extent to which foreign firms can compete in the domestic market, and hence to raise the equilibrium...

This paper examines the effects of auctioning quota licenses when monopoly power exists. With a foreign monopoly and domestic competition the sales of licenses will raise any revenue if domestic and foreign markets are segmented. More surprisingly, the inability to raise revenue is shown to...

This paper examines the effects of auctioning quota licenses when market power exists. The overall conclusion is that with oligopolistic markets, quotas, even when set optimally and with quota licenses auctioned off, are - unlikely to dominate free trade. Moreover, auction quotas only strictly...