Larue, Bruno; Lapan, Harvey E.; Gervais, Jean-Philippe - Department of Economics, Iowa State University - 2010
Tariff-rate quotas (TRQs) have replaced quotas at the end of the Uruguay Round. We analyze TRQs when a foreign firm competes against a domestic firm in the latter’s market. Our benchmark is the strategic rent-shifting tariff. We show that the domestic price-equivalent TRQ is a better...