McCalman, Phillip; Stähler, Frank; Willmann, Gerald - Institut für Weltwirtschaft (IfW) - 2013
This paper develops an efficiency theory of contingent trade policies. We model the competition for a domestic market … distributions are asymmetric because the foreign firm incurs a trade cost to serve the domestic market. We show that the foreign …, justifying the use of contingent trade policy on efficiency grounds. Despite an environment of asymmetric information, contingent …