Ranking the optimum tariff and the maximum revenue tariff in vertically related markets |
| |
| Institution: | 1. Department of Applied Economics, National University of Kaohsiung, No. 700, Kaohsiung University Road, Nan-Tzu District 811, Kaohsiung, Taiwan, ROC;2. Department of International Business, National Kaohsiung University of Applied Science, Kaohsiung 807, Taiwan, ROC;1. Department of Economics, Rhodes College, United States;2. Center for the Study of Rationality, The Hebrew University of Jerusalem, Israel |
| |
| Abstract: | This paper firstly shows that in a vertically related industry with either domestic upstream monopolist or foreign upstream monopolist, when the upstream firm adopts uniform input pricing, the optimum-welfare tariff is higher than the maximum-revenue tariff, if the number of foreign competitors is sufficiently large. Secondly, when domestic upstream monopolist adopts discriminatory input pricing, the maximum-revenue tariff is higher than the optimum-welfare tariff. Thirdly, when foreign upstream monopolist adopts discriminatory input pricing, the optimum-welfare tariff will exceed the maximum-revenue tariff if the sizes of domestic and foreign firms become more unequally distributed. |
| |
| Keywords: | Input pricing Vertical structure Tariff ranking |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
