We present a new tariff-game rule and a new numéraire rule in Krugman's celebrated model to form symmetric trading blocs. We hold that to maintain logical consistency in a world of symmetric trading blocs, an individual bloc should act on the actions of other individual external blocs in a...

This paper examines the optimal specific tax/subsidy policy for a monopoly under multi-tier pricing. It shows, among others, that an increase in a specific tax on any tier will raise (reduce) the cumulative output of preceding (succeeding) tiers in the non-uniform scheme. In contrast, increasing...