Many commodities traded internationally are durable in nature. A dynamic durable goods oligopoly trade model is analyzed. The analysis indicates that the pattern of intra-industry trade depends fundamentally on the quality or durability of the firms' output. Also, product durability influences...

We provide a novel (and old) argument for the nonequivalence of tariffs and quotas, based on the famous paper by Hotelling (1931). Unlike tariffs, quantitative restrictions are inherently dynamic. As long as the foreign exporter earns positive marginal profits, he raises their present value by...

This study examines the relevant factors that determine the FTTH tariffs within the European Union (EU) zone. FTTH networks, as a relevant new technology, have a significant impact on modern economies. This is reflected by their adoption and use across EU countries along with the increasing...

We consider trade policies intended to affect the production of a foreign monopolist that generates negative externalities. We derive the optimal tariff and optimal import quota and examine which policy measure should be used to maximize domestic welfare. We find that if the domestic government...

In a model with cost-based informational asymmetry and trade policy determined endogenously, we show that tariffs and import-quotas have different sensitivities to the signal sent by the private agents to the home government. Specifically, the optimal quota is shown to be more sensitive than the...

In this paper, a domestic and a foreign firm compete as Cournot duopolists in the domestic market. The foreign firm has incomplete information about the costs of the domestic firm, but the domestic government and the domestic firm are completely informed. It is shown that the domestic government...