Simulating Tariffs vs Quotas with Domestic Monopoly
B.E. Journal of Industrial Organization Education
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.
“Simulating Tariffs vs Quotas with Domestic Monopoly, (with J. Gilbert), B.E. Journal of Industrial Organization Education 2, 2007: Article 1.