We investigate the implications of consumer nationalism for multilateral trade cooperation. We develop a two-country, two-firm model, in which the firms produce horizontally differentiated products and act as Bertrand competitors. Assuming that there is asymmetry in consumer nationalism between...

We investigate the implications of preferential trade agreements (PTAs) for interstate confl ict. We set up a two-stage game with three competing importers, where fi rst, two of the countries decide on whether to initiate war against each other, and subsequently, all three countries select their...

We investigate the implications of consumer nationalism for multilateral trade cooperation. Perhaps surprisingly, we show that countries with relatively more nationalist consumers can sustain relatively more liberal trade policies in a repeated-game setting. Moreover, the most cooperative...

This paper explores the impact of fairness and reciprocity on multilateral tariff cooperation. Reciprocal countries reward kind behaviour (positive reciprocity), but retaliate against countries behaving unkindly (negative reciprocity). We demonstrate that reciprocal countries that are moderately...