@article{ART001054939,
author={C. W. Yang and S. N. Sohng and B. N. Huang and Cindy H. P. Peng},
title={In Search of the Optimum Tariffs Under Third-Degree Price Discrimination},
journal={Journal of Economic Integration},
issn={1225-651X},
year={2006},
volume={21},
number={1},
pages={198-210}
}

TY - JOUR
AU - C. W. Yang
AU - S. N. Sohng
AU - B. N. Huang
AU - Cindy H. P. Peng
TI - In Search of the Optimum Tariffs Under Third-Degree Price Discrimination
T2 - Journal of Economic Integration
JO - Journal of Economic Integration
PY - 2006
VL - 21
IS - 1
PB - 경제통합연구소
SP - 198
EP - 210
SN - 1225-651X
AB - Tariff literature on third-degre price discrimination remains only lightlyexplored. The purpose of the paper is to investigate whether there exist optimumtariffs in the presence of different demand elasticities. We explore (i) the case ofoptimum uniform ad valorem tariff, and (ii) the case of optimum discriminatory advalorem tariffs. A two-stage optimization approach is used: profit is maximized fora foreign firm in the first stage and importing country’s optimum tariff rates aredetermined under maximization of welfare (sum of consumer surplus and tariffrevenue). The result indicates that the optimum tariffs may not exist even with a setIn Search of the Optimum Tariffs Under~ 19of well-behaved linear demand functions. Consequently, computer simulations areneeded with cost and demand parameters to ensure better welfare position forhome country.JEL classifications: F10, F12
KW - Optimum, Discriminatory TarifsI. IntroductionEnough ink has been spread on third-degree price discrimination since the workby Pigou (1920). Perhaps the most well-known piece is the one by Robinson(1934) in which output and welfare effects were explo
DO -
UR -
ER -

C. W. Yang, S. N. Sohng, B. N. Huang and Cindy H. P. Peng. 2006, "In Search of the Optimum Tariffs Under Third-Degree Price Discrimination", Journal of Economic Integration, vol.21, no.1 pp.198-210.

C. W. Yang, S. N. Sohng, B. N. Huang, Cindy H. P. Peng "In Search of the Optimum Tariffs Under Third-Degree Price Discrimination" Journal of Economic Integration 21.1 pp.198-210 (2006) : 198.

C. W. Yang, S. N. Sohng, B. N. Huang, Cindy H. P. Peng. In Search of the Optimum Tariffs Under Third-Degree Price Discrimination. 2006; 21(1), 198-210.

C. W. Yang, S. N. Sohng, B. N. Huang and Cindy H. P. Peng. "In Search of the Optimum Tariffs Under Third-Degree Price Discrimination" Journal of Economic Integration 21, no.1 (2006) : 198-210.

C. W. Yang; S. N. Sohng; B. N. Huang; Cindy H. P. Peng. In Search of the Optimum Tariffs Under Third-Degree Price Discrimination. Journal of Economic Integration, 21(1), 198-210.

C. W. Yang; S. N. Sohng; B. N. Huang; Cindy H. P. Peng. In Search of the Optimum Tariffs Under Third-Degree Price Discrimination. Journal of Economic Integration. 2006; 21(1) 198-210.

C. W. Yang, S. N. Sohng, B. N. Huang, Cindy H. P. Peng. In Search of the Optimum Tariffs Under Third-Degree Price Discrimination. 2006; 21(1), 198-210.

C. W. Yang, S. N. Sohng, B. N. Huang and Cindy H. P. Peng. "In Search of the Optimum Tariffs Under Third-Degree Price Discrimination" Journal of Economic Integration 21, no.1 (2006) : 198-210.