. Trade agreement formation is modeled as coalition formation. In a standard trade model with no distance between countries, a … familiar problem of coordination failure arises giving rise to multiple equilibria; any one of many possible trade agreements …

effect gets more pronounced for CUs as well as for FTAs. The absence of policy coordination between the members of FTAs …

profits from excluded countries. I show that the exporting rents resulting from this coordination can offset trade diversion …

-linkage literature. In particular, we propose a preferential free trade agreement on which a climate coalition should be built. The basic … idea is that the benefits of free trade provide strong incentives for free riders to join the coalition. As a framework, a … heart of our approach are the trade privileges granted to coalition members shifting the terms of trade favourably without …

-stage strategic trade and participation game, coalition and fringe countries dispose of a discriminatory tariff on dirty imports as … well as emission permits imposed on domestic producers and traded on a common permit market inside the coalition, or …