See: permissive
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In particular, under specific limiting assumptions, nonprohibitive transaction costs among them, private bargaining is sufficient to solve the social cost issue so long as legal entitlements are clearly defined.
To go one step further, to the extent that other firms face nonprohibitive transportation costs, entry by other firms becomes possible, and their production plus transportation costs will set an upper limit on prices any firm can charge.
In a liberal economic system, government does not thwart private parties in their attempt to enter voluntary transactions, and taxes are stable, predictable, and nonprohibitive.
Assume sufficient population risk heterogeneity and nonprohibitive costs of selection so that some dumping occurred under pure capitation.
The costs of violation will be seen as nonprohibitive.
Thus a home tariff that shifts a duopoly equilibrium to the advantage of the home firm will be demonstrated to entail, in the case of a nonprohibitive tariff, no consumption cost from protection.
A high nonprohibitive tariff will enable the home duopolist to capture all of the low cost consumers.
As we show later, our approach can explain the observed fact of binding but nonprohibitive quotas, whereas this observation rejects the simple surplus maximization approach.
By producing convex indifference curves, a quasi-concave policy makers' objective function can also generate nonprohibitive quotas if the difference curves are more convex than the feasible locus.
For a homogeneous good under a nonprohibitive tariff, foreign competition will force a monopolist to behave as a price taker.

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