Saggi, Kamal; Woodland, Alan; Yildiz, Halis Murat - In: American Economic Journal: Microeconomics 5 (2013) 1, pp. 63-99
This paper compares equilibrium outcomes of two games of trade liberalization. In the Bilateralism game, countries choose whether to liberalize trade preferentially via a customs union (CU ), multilaterally, or not at all. The Multilateralism game is a restricted version of the Bilateralism game...