oligopoly setting where the Home country specializes in final goods and the Foreign country specializes in intermediate inputs …

tariffs on its imports. We consider an environment in which home firm costs are private information but it can signal these …

, tariffs may fail to protect, leading to a Metzler Paradox like situation. This is because the income effect generated due to …

as tariffs, can continue to disadvantage foreign firms. We analyze the bidding strategies in such a game and show that … when domestic profits are valued,tariffs will be used to discriminate against foreign firms. Furthermore, we find that optimal … tariffs can be more protectionist than the optimal price preference, resulting in lower expected domestic welfare and total …

import tariffs on a destination market are associated with less pricing-to-market, whereas non-tariff measures are associated …