NAYA, JOSÉ MÉNDEZ; NAYA, LUCIANO MÉNDEZ - In: International Game Theory Review (IGTR) 09 (2007) 04, pp. 657-666
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...