Ryan Amacher, Robert Tollison, Thomas Willet, Domestic crude oil industry, Oil import controls
Antitrust and Trade Regulation | Commercial Law | International Trade Law
The position of Ryan Amacher, Robert Tollison, and Thomas Willett (ATW) can be summarized as follows: Assuming that the domestic industry behaves like a profit-maximizing monopoly, if the quota on imported crude oil is replaced by a tariff that is by assumption set so as to achieve the same domestic price of crude oil, the market power of the dominant domestic firms is "severely constrained."
In response I would contend that 1) their assumption about the level of the tariff differs from what I had assumed; 2) their conclusion about the market power of the dominant firms is subject to question; and 3) their assumption about the behavior of the domestic industry is difficult to reconcile with the available data.
Hay, George A., "Import Controls on Foreign Oil: Reply" (1973). Cornell Law Faculty Publications. Paper 1171.
Published in: American Economic Review, vol. 63, no. 5 (December 1973).