Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/101541 
Year of Publication: 
1992
Series/Report no.: 
Diskussionsbeiträge - Serie II No. 182
Publisher: 
Universität Konstanz, Sonderforschungsbereich 178 - Internationalisierung der Wirtschaft, Konstanz
Abstract: 
In terms of a simple model we show that removal of tariff from a competing foreign brand is likely to expand the size of the domestic industry when income disparities exist. A tariff increases profits of the local monopolist but is capable of cutting down the size of the local industry. After providing the general theoretical condition, we construct an example (from a class of examples) where such an outcome holds in equilibrium.
Document Type: 
Working Paper

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