This paper examines the issue of sustaining free trade when countries receive imperfect private information about each other's non-tariff barriers. Because the countries can misrepresent their private briefs about other countries' protection levels, the punishment scheme to deter deviations from...

This paper examines the issue of sustaining free trade when countries receive imperfect private information about each other’s non-tariff barriers. Because the countries can misrepresent their private belief about other countries’ protection levels, the punishment scheme to deter...