A Trade War Simulation/Experiment in Excel

John Gilbert

Computers in Higher Education Economics Review, 2005, vol. 17, issue 1, 4-8

Abstract: We present a simple simulation model, implemented in Excel, that can be used to develop the concept of optimal tariffs, and as the basis of an experimental assignment on the effects of tariff retaliation. By exploring the simulation, students are able to discover for themselves the potentially deleterious effects of a trade war, and that a trade war will not result in the elimination of all trade.

Date: 2005
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