Moraga-González, José Luis; Viaene, Jean-Marie - 1999
We study the optimal trade policy against a foreign oligopoly withendogenous quality. We show that, under the Most … Favoured Nation(MFN) clause, a uniform tariff policy is always welfare improvingover the free trade equilibrium. However, a … low-quality product and a tax onhigh-quality one. Another example of such a nonuniform tariff policyis a Regional Trade …