Oladi, Reza - In: Review of International Economics 13 (2005) 2, pp. 205-215
A two-country, two-commodity model of trade is considered to reformulate the tariff retaliations. It is known that tariff retaliations lead to a Nash-equilibrium, a non-free-trade outcome. However, the negotiation process underlying the Nash equilibrium does not capture the notion of retaliation...