Article
Simulating Tariffs vs. Quotas with Domestic Monopoly
Journal of Industrial Organization Education
(2012)
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/