Kemp, Murray C.; Long, Ngo Van; Shimomura, Koji - Research Institute for Economics and Business … - 2000
We present a simple two(-country) by two(-good) differental game model of international trade in which the governments of the two countries play a tariff-setting game. We explicitly derive a unilateral optimum tarifff rate and then a Markov-perfect equilibrium pair of tariff strategies...