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| Author: | Hur, J. Riyanto, Y.E. |
| Title: | Tariff policy and exhaustion of intellectual property rights in the presence of parallel imports |
| Journal: | Oxford Economic Papers
2006 : JUL, VOL. 58:3, p. 549-568 |
| Index terms: | imports intellectual property law tariffs |
| Language: | eng |
| Abstract: | This article examines an interplay between tariff policy and parallel-import policy. From a welfare point of view, a host government would prefer allowing parallel imports to prohibiting them. However, if a tariff is not at the government's disposal, there will be no parallel imports in equilibrium because a foreign manufacturer would prefer adopting a uniform pricing policy to a discriminatory pricing policy, which will prevent parallel imports from occurring. If a tariff is at the government's disposal, it can be set optimally to iduce the foreign manufacturer to impose a price discrimination policy. |
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