We analyze the role of imperfect competition in explaining the relationship between temporary surges in trade-volumes and the level of cooperation in trade policy that can be sustained between countries in a repeated game framework. Imperfectly competitive markets are characterized by a mark-up...

The paper compares tariffs and import quotas when the home firm has private information about its true cost and the government offers incentive contracts to extract this information. We highlight the role of underlying market structure in determining the ranking of the two policy instruments....

In this paper we address the issue of multilateralism versus bilateralism in a situation where a home government's optimal policy is time-inconsistent and the time-consistent policy sub-optimal. Short-run production and wage rigidities create incentive for the government to surprise private...