Abstract
Consider a government which fixed the supply of a good (e.g. by an import quota). Suppose the market for the good can be partitioned (e.g. sales in different years or in different areas of the country can be considered sales in different markets). We show that maximization of consumer surplus in the domestic economy may require segmentation of the domestic market into two, but no more, parts.
Original language | English |
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Pages (from-to) | 55-61 |
Number of pages | 7 |
Journal | Economics Letters |
Volume | 58 |
Issue number | 1 |
DOIs | |
State | Published - 1 Jan 1998 |
Keywords
- D45
- D61
- D72
- F13
- Import quotas
- Rationing
- Regulation
- Rent seeking