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A Trade War Simulation/Experiment in Excel

Author

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  • John Gilbert

    () (Utah State University)

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.

Suggested Citation

  • John Gilbert, 2005. "A Trade War Simulation/Experiment in Excel," Computers in Higher Education Economics Review, Economics Network, University of Bristol, vol. 17(1), pages 4-8.
  • Handle: RePEc:che:chepap:v:17:y:2005:i:1:p:4-8
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    File URL: http://www.economicsnetwork.ac.uk/cheer/ch17/gilbert.htm
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    Cited by:

    1. Reza Oladi & John Gilbert, 2006. "A Simulation Experiment of a Customs Union," Computers in Higher Education Economics Review, Economics Network, University of Bristol, vol. 18(1), pages 29-33.

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