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Strategic and rent extracting tariffs in the presence of persuasive advertising

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Download wp93_32.pdf1.07 MB
Author(s)
Leahy, Dermot 
Uri
http://hdl.handle.net/10197/1744
Date Issued
December 1993
Date Available
07T14:40:04Z January 2010
Abstract
This paper examines positive and normative implications of tariffs in the presence of persuasive advertising. It demonstrates that protection affects imports, the domestic consumer price and the terms of trade directly and through its effect on the level of advertising. If protection reduces advertising a Metzler paradox can occur. A tariff can be used to induce foreigners to allow entry. Jointly optimal tariffs and advertising taxes and the optimal tariff for the situation when it is the only available policy instrument are derived under both monopoly and Cournot oligopoly.
External Notes
A hard copy is available in UCD Library at GEN 330.08 IR/UNI
Type of Material
Working Paper
Publisher
University College Dublin. School of Economics
Series
UCD Centre for Economic Research Working Paper Series
WP93/32
Keywords
  • Persuasive advertisin...

  • Tariffs

  • Oligopoly

  • Entry

Subject – LCSH
Advertising--Economic aspects
Tariff
Trade regulation
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
https://creativecommons.org/licenses/by-nc-sa/1.0/
Owning collection
Economics Working Papers & Policy Papers
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Acquisition Date
Jan 31, 2023
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