WINDFALL PROFITS, OLIGOPOLY PRICING AND THE METHYL BROMIDE PHASEOUT

Methyl Bromide in the United States is supplied by only four firms (two producers and two importers) who reap windfall profits from MB restrictions. Since 1992 we estimate that over $300 million in cumulative windfall profits have resulted from restrictions on Methyl Bromide and currently run between $65 to $80 million annually. We examine the factors that influenced this price rise, the changes in quota premiums and deadweight losses under trade and no-trade scenarios; and how methods to capture and redistribute windfall profits will alter efficiency and equity.


Subject(s):
Issue Date:
2004
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/20259
Total Pages:
10
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-12-06

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