Konishi, Hideo; Kowalczyk, Carsten; Sjöström, Tomas - Department of Economics, Boston College - 2008
This paper shows nonemptiness of the core of a customs union game with a status quo equilibrium with tariffs by employing an appropriate notion of the core as in Kowalczyk and Sjöström (1994, Economica). Specifically, we find that if customs unions may have no effects on non-member countries...