Moraga-Gonzalez, Jose Luis; Viaene, Jean-Marie - Research Seminar in International Economics, University … - 2003
The procompetitive effects of trade policies are analyzed in a foreign duopoly model of vertical product differentiation. A uniform tariff policy complying with the Most Favored Nation (MFN) clause is welfare superior to free trade because of a pure rent-extracting effect. A nonuniform tariff...