Gonzales, José Luis Moraga; Viaene, Jean-Marie - 2001
We study the procompetitive effects of trade policies against a foreign oligopoly in a model of vertical product … trade because of a pure rent-extraction effect. However, a nonuniform tariff policy is, in addition, procompetitive and thus … producing low quality and levying a tariff on the country producing high quality. Regional Trade Agreements (RTYs) are examples …