In Search of the Optimum Tariffs Under Third-Degree Price Discrimination

• 영문명: In Search of the Optimum Tariffs Under Third-Degree Price Discrimination
• 발행기관: 세종대학교 경제통합연구소
• 저자명: S.N. Sohng B.N. Huang Cindy H. P. Peng
• 간행물 정보: 『Journal of Economic Integration』제21권 제1호, 198~210쪽, 전체 13쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2006.03.31

영문 초록

Tariff literature on third-degree price discrimination remains only lightly explored. The purpose of the paper is to investigate whether there exist optimum tariffs in the presence of different demand elasticities. We explore (i) the case of optimum uniform ad valorem tariff, and (ii) the case of optimum discriminatory ad valorem tariffs. A two-stage optimization approach is used: profit is maximized for a foreign firm in the first stage and importing country`s optimum tariff rates are determined under maximization of welfare (sum of consumer surplus and tariff revenue). The result indicates that the optimum tariffs may not exist even with a set of well-behaved linear demand functions. Consequently, computer simulations are needed with cost and demand parameters to ensure better welfare position for home country.

목차

Ⅰ. Introduction

Ⅱ. Optimum Uniform Ad Valorem Tariff

Ⅲ. The Optimal Discriminatory Tariff

Ⅳ. The Optimal Discriminatory Tariff with a Fixed Tariff Revenue

Ⅴ. Conclusion

키워드

Optimum Discriminatory Tariffs