This paper studies how trade policy uncertainty (TPU) affects the pass-through of import tariff and exchange rate changes into import prices. Little is known about the effects of tariff changes accompanied by TPU on import prices, especially when price rigidities are present. Using a dynamic...

When capacity is costly and prices are set in advance, firms facing uncertain demand will sell output at multiple prices and limit the quantity available at each price. I show that the optimal price strategy of a monopolist and the unique pure-strategy Nash equilibria of oligopolists both...