IMF Working Papers

Quota Brokers

September 1, 2004

Download PDF

Preview Citation

Format: Chicago

Quota Brokers, (USA: International Monetary Fund, 2004) accessed September 20, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper examines the role of middlemen (brokers) in an imperfect secondary market for quota licenses. Middlemen facilitate trade when markets are thin, as potential buyers and sellers find it difficult to meet and transact directly. However, in thin markets, middlemen also have the ability to influence the terms on which trades occur, and the wedge they create between the buying and selling price limits the extent to which they facilitate trade. We develop and simulate a model of quota broker behavior to examine their welfare implications.

Subject: Competition, Stocks

Keywords: Market power, WP

Publication Details

  • Pages:

    18

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2004/179

  • Stock No:

    WPIEA1792004

  • ISBN:

    9781451859065

  • ISSN:

    1018-5941

You May Also Be Interested In...

Public Perceptions of Canada’s Investment Climate

July 26, 2024

Knowledge Diffusion Through FDI: Worldwide Firm-Level Evidence

July 12, 2024

Bulgaria in Global Value Chains: Leveraging Integration with the EU: Bulgaria

June 24, 2024

The Pitfalls of Protectionism: Import Substitution vs. Export-Oriented Industrial Policy

April 26, 2024