Karp, Larry; Newbery, David M G - C.E.P.R. Discussion Papers - 1989
countries take the import tariffs of other importers as given) are normally time-inconsistent. The paper shows why, and derives … time-consistent, open-loop Nash tariffs in a natural formulation of the problem. The two tariffs can be readily computed … and compared, and differ except for a special class of import demands. The time paths of tariffs and the welfare cost of …