TARIFF RETALIATION AND THE FREE TRADE ARGUMENT

IF 0.4 Q4 MATHEMATICS, INTERDISCIPLINARY APPLICATIONS

International Game Theory Review Pub Date : 2007-12-01 DOI:10.1142/S0219198907001643

José Méndez Naya, Luciano Méndez Naya

引用次数: 1

Abstract

The effects of tariff wars on welfare are analysed for the case of trade between two countries with outputs of the traded good given exogenously. Assuming mild conditions, it is shown that if there are non-zero tariffs for which welfare-maximizing equilibrium holds, then free trade is not strictly preferable when the countries' outputs are equal, and if they are not equal is strictly disadvantageous to the country with the smaller output. Therefore, the main result of the paper is that free trade is not sustainable in an asymmetric context nor in a symmetric situation.

查看原文本刊更多论文

关税报复和自由贸易的争论

本文分析了关税战对两国间贸易的影响，其中贸易商品的产出是外生的。假设条件温和，结果表明，如果存在非零关税且福利最大化均衡成立，那么当两国的产出相等时，自由贸易并不是严格可取的，如果两国的产出不相等，则自由贸易对产出较小的国家严格不利。因此，本文的主要结论是，自由贸易在不对称的背景下和对称的情况下都是不可持续的。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

International Game Theory Review MATHEMATICS, INTERDISCIPLINARY APPLICATIONS-

CiteScore

0.80

自引率

0.00%

发文量

期刊介绍： Rapid developments in technology, communication, industrial organization, economic integration, political reforms and international trade have made it increasingly imperative to recognize the causes and effects of strategic interdependencies and interactions. A strategic approach to decision-making is crucial in areas such as trade negotiations, foreign and domestic investments, capital accumulation, pollution control, market integration, regional cooperation, development and implementation of new technology, arms control, international resource extraction, network sharing, and competitive marketing. Since its inception, game theory has contributed significantly to the foundations of decision-making.