Strategic behavior in the international burley tobacco market

This note uses an international trade model to investigate the competitiven ess of the world burley tobacco market. Results support the contention that governments can take advantage of market imperfections to shift rents to t he domestic economy. Both tariffs and quotas lead to larger domestic welfar e compared to baseline results. However, a lowering of the price support le ad to similar overall welfare increases without the retaliatory responses b y competitors. (C) 2000 Society for Policy Modeling. Published by Elsevier Science Inc.