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An Elementary Proposition Concerning Parallel Imports

Richardson, Martin

Description

This paper demonstrates that, when countries individually choose whether or not to prohibit parallel imports, a global Nash equilibrium involves the permitting of parallel importing into all relevant foreign markets i.e. global uniform pricing. This result is sensitive in a straightforward way to the tariff-setting powers of countries and to the specification of a government's objective function (i.e. political economy considerations). We also show that when countries can prevent 'parallel...[Show more]

CollectionsANU Research Publications
Date published: 2002
Type: Journal article
URI: http://hdl.handle.net/1885/22922
Source: Journal of International Economics
DOI: 10.1016/S0022-1996(01)00110-6

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