This paper sets up a microeconomics model to analyze the market outcomes of two-part tariffs and three-part tariffs …. Specifically, this paper compare the market outcomes of a single two-part tariffs to a single three-part tariffs under the …. The results show that a single two-part tariffs and a single three-part tariffs bring forth the same market outcomes …

We derive a simple equation for the welfare gains from trade when tariffs are liberalized or iceberg trade costs fall … the analysis of Arkolakis, Costinot and Rodriguez-Clare (2012) to encompass revenue-generating import tariffs. Our formula … countries with relatively high status quo tariffs, our formula predicts 30-60\% larger gains from trade than the icebergs only …