Efficient second best pricing is examined for a public enterprise facing two distortions: a profit constraint and imperfect competition. We suggest a measure of downstream industry distortion for efficient pricing. The pricing rule constrains two elements: the shadow value of public profit and...

This paper examines the incentives for using tariffs to extract monopoly rents from imperfectly competitive foreign firms. Using a simple Stackelberg entry deterrence model, the rent-extracting policy is attractive if the foreign firm faces a threat of domestic entry. Despite transportation...