EconPapers    
Economics at your fingertips  
 

Dynamics and Discriminatory Import Policy

Ted To

Canadian Journal of Economics, 1999, vol. 32, issue 4, 1057-1068

Abstract: Although the GATT prohibits discriminatory import tariffs, it includes means for circumventing this prohibition. The previous literature uses static models and discriminatory tariffs increase welfare. In a dynamic model, if governments lack the ability to precommit, this is not necessarily true. For example, with consumer switching costs, tariffs are higher for firms with higher market share. Rationally expecting such policies, firms price less aggressively. If switching costs are significant relative to asymmetries, then higher prices can result in lower importing country welfare. Thus it may be in interests of importers to abide by the GATT MFN principle

JEL-codes: F12 F13 L13 (search for similar items in EconPapers)
Date: 1999
References: Add references at CitEc
Citations:

Downloads: (external link)
https://links.jstor.org/sici?sici=0008-4085%281999 ... DADIP%3E2.0.CO%3B2-L (text/html)
only available to JSTOR subscribers

Related works:
Working Paper: Dynamics and Discriminatory Import Policy (1998)
Working Paper: Dynamics and Discriminatory Import Policy (1998) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cje:issued:v:32:y:1999:i:4:p:1057-1068

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Zhiqi Chen

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().

 
Page updated 2025-03-22
Handle: RePEc:cje:issued:v:32:y:1999:i:4:p:1057-1068