Import quotas and entry deterrence Campbell, Neil

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Campbell, Neil
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Australian Economic Papers
Industrial Organization; trade quotas; Milgrom and Roberts entry deterrence model
Using a simple version of the Milgrom and Roberts entry deterrence model, it is shown that adjusting a quota so that a greater volume of imports is allowed, can facilitate entry into the domestic industry. That is, the easing of a quota, can cause the domestic incumbent to shift from deterring entry to accommodating entry.
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