importance in trade talks, because of the large number of countries involved, the wider dispersion in initial tariffs (e … with heterogeneous firms subject to high and low tariffs. We examine the welfare effects of applying three different tariff …

Although the GATT prohibits discriminatory import tariffs, it includes means for circumventing this prohibition. The … previous literature uses static models and discriminatory tariffs increase welfare. In a dynamic model, if governments lack the … ability to precommit, this is not necessarily true. For example, with consumer switching costs, tariffs are higher for firms …