Document Type

Article

Publication Date

12-1973

Keywords

Ryan Amacher, Robert Tollison, Thomas Willet, Domestic crude oil industry, Oil import controls

Disciplines

Antitrust and Trade Regulation | Commercial Law | International Trade Law

Abstract

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.

Comments

Article predates the author's affiliation with Cornell Law School.

Publication Citation

Published in: American Economic Review, vol. 63, no. 5 (December 1973).

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