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Potential Pareto-improving Move towards Most Favored Nation Tariffs

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  • Lahiri Sajal

    ()
    (Southern Illinois University)

  • Peri Silva

    ()
    (Kansas State University and Centro Studi Luca d\'Agliano)

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.

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Bibliographic Info

Paper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 348.

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Length: 24
Date of creation: 24 Apr 2013
Date of revision: 24 Apr 2013
Handle: RePEc:csl:devewp:348

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Keywords: Tari reform; MFN; Welfare; Asymmetric Oligopoly;

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