Customs unions and the core
AbstractCustoms union formation is modeled as a two-stage game. In the first stage countries make coalitional choices according to core theory. In the second stage optimal tariffs are determined. This yields a theory that predicts which customs unions form. An example shows that a customs union can be an equilibrium even when both member countries do better at free trade.
(This abstract was borrowed from another version of this item.)
When requesting a correction, please mention this item's handle: RePEc:eee:inecon:v:19:y:1985:i:3-4:p:355-365. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.