Sala, Davide; Schröder, Philipp J. H.; Yalçin, Erdal - 2009
WTO negotiations deal predominantly with bound - besides applied - tariff rates. But, how can reductions in tariffs … formalizes the underlying interaction of risk, fixed export costs and firms' market entry decisions based on techniques known … from the real options literature; doing so we highlight the important role of bound tariffs at the extensive margin of …