Author: Wang, Yu-Ter

Source: Applied Economics Letters, Volume 14, Number 14, November 2007 , pp. 1087-1089(3)

Publisher: Routledge, part of the Taylor & Francis Group

Abstract:

By using an n-firm Cournot model, this article examines the relationships among the number of domestic and foreign firms, the product differentiation between the domestic and foreign firms and an import tariff. It is shown that the relative number of domestic and foreign firms as well as the degree of product differentiation between the domestic and foreign firms indeed affects the level of the tariff on imports. Furthermore, whether or not an increase in product differentiation between the domestic and foreign firms reduces the level of the import tariff is dependent on the relative number of domestic and foreign firms.

Document Type: Research article

DOI: http://dx.doi.org/10.1080/13504850600706511

Affiliations: 1: Department of Economics, Ming Chuan University, Taiwan

Publication date: 2007-11-01

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