We extend the basic model of trade protection with special interest groups developed in Grossman and Helpman (1994) to include monopolistic competition with variable markups. We find the following results: (i) for sectors organized into lobbies the endogenous import tariff is always positive and...

This paper analyzes the issue of choosing a socially efficient rule on how to leave the toilet seat. Leaving the seat as it is after usage is found to be the best rule over a wide parameters space. Using a loss function minimization approach, factors such as relative toilet usage, frequency of...

We extend the basic model of trade protection with special interest groups developed in Grossman and Helpman (1994) to include monopolistic competition with variable markups. We find the following results: (i) for sectors organized into lobbies the endogenous import tariff is always positive and...