This paper contributes to the theoretical analysis of proportional import restraints, that is, restraints that are defined in terms of market shares (e.g., 10% of the market) rather than in terms of volume of imports (e.g., 200,000 automobiles per year). We show that an increase in the market...

We offer a new explanation of equilibrium rationing. As is well known, a monopolist selling a durable good and not able to commit to a price sequence has an incentive to lower the price once the consumers with the greatest willingness to pay have bought, but this induces consumers to postpone...