‘go first’. In our model, there are substantive welfare implications depending on which party sets tariff rates (or …’s surplus, OECD producers’ loss, net exports of developing countries, firm profits, or even, world welfare as the sum of all …

reduces the potency of a country's optimal tariffs and therefore its incentive for unilaterally opting out of trade …

revenue finances the provision of a public good, marginal migration reduces social welfare in the source country and raises it … migration has an ambiguous impact on social welfare in either country. When tariff revenue in either country is either equally … effect on social welfare in the host country, and is expected to reduce social welfare in the source. …

This paper examines the welfare implications of preferential trade agreements (PTAs) from the perspective of small … tariffs in these two cases considering three different equilibria: Free Trade (FT), Free Trade Area (FTA), and Customs Union …