A Classroom Experiment on Import Tariffs and Quotas Under Perfect and Imperfect Competition

22 Pages Posted: 6 Nov 2010  

Sean E. Mulholland

Western Carolina University

Date Written: November 4, 2010

Abstract

This manuscript develops a classroom experiment on international trade that is suitable for undergraduate intermediate macroeconomics, international trade, and international finance courses. Students representing buyers, in a small home country and foreign country, and sellers, both home and foreign, participate in a double-oral-auction to determine the price and level of international trade. By imposing tariffs and quotas and altering the structure of the home market from one of perfect competition to one of imperfect competition, the students experience the importance of market structure when seeking to determine efficiency effects of import tariffs and quotas.

Keywords: experiments, trade, quota, tariff, imperfect competition

JEL Classification: A22, C91, D43, F11, F12

Suggested Citation

Mulholland, Sean E., A Classroom Experiment on Import Tariffs and Quotas Under Perfect and Imperfect Competition (November 4, 2010). Available at SSRN: https://ssrn.com/abstract=1703168 or http://dx.doi.org/10.2139/ssrn.1703168

Sean E. Mulholland (Contact Author)

Western Carolina University ( email )

United States

HOME PAGE: http://faculty.wcu.edu/semulholland/

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