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Volume Quotas with Heterogeneous Product Categories*
Author(s) -
GIBBS I.,
KONOVALOV V.
Publication year - 1984
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1984.tb00864.x
Subject(s) - product (mathematics) , volume (thermodynamics) , business , market power , product market , industrial organization , economics , commerce , microeconomics , mathematics , incentive , physics , geometry , quantum mechanics , monopoly
Volume quotas on imports are an important part of assistance packages afforded a number of major industries in Australia. Generally, quota is allocated to importers free of charge, although recently a proportion of quota for some product groups has been sold by tender. In this paper we compare the effects of volume quotas applied to heterogeneous product groups when allocated free of charge, by full tender sale and by a combination offender sale and free allocation. The analysis is undertaken for both competitive markets and in the case where importers have some market power.