Policy, Research, andExletnal Affalrs 'VWRKING PAPERS., L Trade Policy Country Economics Department The World Bank August 1991 WPS 756 Taxes /Ver us Quotlas The Case of Cocoa Exports Arvind Panagariya and MauriceSchiff What are the implications of optimal Nash quotas and taxes when two or more countries compete against each other in the world market for primary commodities - in this case, cocoa? ThePolicy,Research, and ExternalAffairs Cornplex distributes PRE Working Papers to disscrrunatc the findings of work in progrcss and to encourage the exchange of ideas amorg Bank staff and aU others interested in development issues. Thcse papcrs carry the namcs of the authors, reflect otly their views, and should be used and cited accordingly The findings, intcrprntations, and conclusions arc the authors' own. They should not be attributed to the World Bank, its Board of Directors, its management, or any of its member counsnes. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized