Potential Pareto-improving Move towards Most Favored Nation Tariffs

Sajal Lahiri and Peri Silva ()

No 348, Development Working Papers from Centro Studi Luca d'Agliano, University of Milano

Abstract: We use a multi-country asymmetric oligopolistic framework for segmented markets to study the welfare effects of reducing tariff discriminations - which we call a move towards Most Favored Nation tariffs. Both unilateral and multilateral reforms are considered. We investigate this issue under different scenarios such as when initial tariffs are arbitrary and when they are optimal. Conditions under which such harmonizations are potentially Paretoimproving are derived. We also analyze the effects on individual countries.

Keywords: Tari reform; MFN; Welfare; Asymmetric Oligopoly (search for similar items in EconPapers)
JEL-codes: F10 F11 F13 (search for similar items in EconPapers)
Pages: 24
Date: 2013-04-24, Revised 2013-04-24
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https://www.dagliano.unimi.it//media/WP2013_348.pdf (application/pdf)

Related works:
Journal Article: POTENTIAL PARETO-IMPROVING MOVE TOWARD MOST FAVORED NATION TARIFFS (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:csl:devewp:348

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