With imperfectly competitive product markets, producers react to the auction of quota licenses by adjusting price upwards from the free trade level. As a result, license revenues are significantly lower than if markets were perfectly competitive. In fact, they are often zero unless quotas are...

This paper analyzes some aspects of the effects of trade restrictions (such as tariffs, quotas and quality controls) and their desirability when the quantity of the imported good is endogenous, and the foreign producer is a monopolist. It uses a fairly general model based on the work of Spence...

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 that of its nontransferable counterpart only if the underlying quota is quite restrictive. Despite this,...