Cost cap tariffs are pay-per-use tariffs for which costs cannot exceed a predefined cost limit. They were recently introduced to telecommunications markets, but were previously also applied in the insurance industry as deductibles or in the rental industry as day rates. This paper develops and empirically validates a consumer surplus model that explains the optimal consumption pattern under cos...

this study uses vector error correction model to examine the effects of oilseeds, crude oil and vegetable oil tariffs on vegetable oil consumer price. monthly data sets for the years 2004-2013 and var and vecm models were applied for this study. research findings indicates only a long term equilibrium relation between the study variables .the effect of vegetable oil tariffs on consumer and prod...

Abstract This paper establishes relationships between static Nash equilibria and dynamic Markov perfect equilibria of tariff and quota retaliation games. In supermodular games where tariffs are strategic complements, the steady state of every, symmetric Markov perfect equilibrium must have lower tariffs than in the static equilibrium. If tariffs are strategic substitutes, tariffs in the dynamic...

Grid tariffs are the main source of income for distribution system operators (DSOs). Reductions of tariffs increase the cost pressure on DSOs; assuming they work efficiently tariff reductions potentially lead to a decrease of the electricity system's quality if no reliability of supply criteria are incorporated in the regulatory system. Our statistically analysis shows that the correlation betw...

MUCH attention has been devoted to the study of the structure of tariffs in industrial nations and its impacts on the level and composition of their imports from developing countries. Studies have identified two sources of bias against imports from developing countries inherent in tariff structures of industrial nations. First, tariffs used by industrial nations have been found to bear more hea...

This paper studies the effects of tariffs on intra-firm trade. Building on the Antràs and Helpman (2004) North-South theoretical framework, the author shows that higher Northern tariffs reduce the incentives for outsourcing and offshoring, while higher Southern tariffs have the opposite effects. The author also shows that increased offshoring and outsourcing imply a descrease in the ratio of No...

Tariffs can create allocative inefficiencies that reduce national income. There is thus a legitimate presumption that high average levels of tariffs are a poor policy choice. However, tariffs can also be used to raise national income provided the appropriate industry is chosen for protection. Examples include Paul Krugman’s (1987) model of learning-by-doing and Gene M. Grossman and Elhanan Help...

In communication, information, and other industries, three-part tariffs are becoming increasingly popular. A three-part tariff is defined by an access price, a usage allowance, and a marginal price for any usage in excess of the allowance. The nonlinear-pricing literature has focused primarily on two-part tariffs. We show that consumer behavior differs under three-part tariffs, in particular re...

We show that a relatively small menu of three-part tariffs (3PTs) can be more profitable and, sometimes, socially more desirable than a larger menu (more items) of two-part tariffs (2PTs). Often, a single three-part tariff can beat a sorting menu comprising multiple two-part tariffs. Moreover, this 3PT menu can be designed with less information about consumer preferences, relative to the menu o...

— This paper explores tariff reform in Ethiopia, Kenya, Tanzania and Uganda between the early 1990s and early 2000s. Tariffs were reformed in an across the board manner consistent with implementing World Bank programs: the average tariff was reduced and the dispersion of tariffs was compressed, with the highest tariffs being eliminated. There is limited evidence of political economy influences ...