As a rule, quotas and VERs harm consumers by restricting market supply while raising prices. At the same time, they generally tend to raise prices and profits of both the domestic firms and the foreign, quota-constraint firms. This is the case, since the quota acts as a facilitating device for...

We revisit the adoption of voluntary export restraints (VERS) in the differential Cournot game with sticky price and intraindustry trade by Dockner and Haug (1991). The analysis relies on linear and nonlinear feedback strategies, to encompass the special cases considered in Fujiwara (2010) and...