The paper develops a two-stage duopoly model in which market structure is endogenous, as it is the outcome of the first stage of the game. The model considers a private firm and a State Trading Enterprise (STE) competing on a foreign market; the most important difference between the private firm...

The paper develops a two-stage capacity constrained duopoly model, in which the mode of competition is endogenous and the constraint is exible, to investigate the impact of Tari Rate Quotas (TRQs) and their liberalization. The model predicts that the greater the gap between the price of the...