The institutional features of the WTO motivate the use of renegotiation proofness as an equilibrium concept in repeated tariff-setting games. We show existence of a renegotiation-proof equilibrium that reduces tariffs below the noncooperative level. We find that the one-shot Nash equilibrium...

The greatest challenge for the EU in trying to identify an optimal response is understanding the motives behind the US strategy. The rhetoric, and more recently also actions, of the current US administration on trade and the global multilateral system are a real threat to the process of...

This paper characterizes analytically the optimal tariff of a large one-sector economy with monopolistic competition and firm heterogeneity in general equilibrium, thereby extending the small-country results of Demidova and Rodriguez-Clare (JIE, 2009) and the homogeneous firms framework of Gros...