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Author:Fisher, E.
Wilson, C.
Title:Price competition between two international firms facing tariffs
Journal:International Journal of Industrial Organization
1995 : MAR, VOL. 13:1, p. 67-87
Index terms:POLICY
IMPERFECT COMPETITION
PRICES
Language:eng
Abstract:This paper examines the effects of tariffs on price-setting duopolists selling a homogeneous product. The producers cannot segment geographically distinct markets. It provides a complete characterization of the equilibrium (mixed) strategies and analyzes the pattern of competition for different tariffs. If a country raises its tariff, the profits of both producers increase, although the protected firm typically benefits more than its foreign counterpart.
SCIMA record nr: 128367
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