In this paper we present the results a study of the effects on different levels of tariff protection in the European market for bananas by using two types of oligopoly models: one which supposes that the product is homogeneous and another assumes the existence of product differentiation due to the diverse origins of bananas. We also estimate the optimum level of tariff protection under both market structures. The main conclusion is that a successful product differentiation can reduce the necessity for protection.

Keywords: oligopoly, trade policy, banana market.