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Article
Simulating Tariffs vs. Quotas with Domestic Monopoly
Journal of Industrial Organization Education (2012)
  • John Gilbert, Utah State University
  • Reza Oladi, Utah State University
Abstract

The pro-competitive effects of international trade in the presence of monopoly, and the deleterious effects of protection, are topics commonly taught in both international trade and industrial organization classes. We present a numerical simulation model for classroom use, built in Excel, that is designed to explore the effect of international trade on a monopoly, and how the effects of protecting the monopoly may differ depending on whether a tariff or a quota is chosen. We describe the model, key results, and how to integrate the approach into the curriculum.

Keywords
  • monopoly,
  • tariffs,
  • quotas,
  • simulation models
Publication Date
April 19, 2012
Citation Information
John Gilbert and Reza Oladi. "Simulating Tariffs vs. Quotas with Domestic Monopoly" Journal of Industrial Organization Education Vol. 2 Iss. 1 (2012)
Available at: http://works.bepress.com/reza_oladi/13/