In this paper, whether markets are integrated or segmented is endogenous and is determined by the interaction of demand parameters, tariffs, transportation costs, and arbitrage. Given certain restrictions, it is shown, in equilibrium, that policy makers choose tariffs to segment markets. The effects of trade liberalization (reducing all tariffs to zero) in an endogenous market structure framewo...

We construct a three-country model to determine how the formation of free trade areas (FTAs) affects optimal tariffs and welfare. We find that, at constant rest of the world (ROW) tariffs, the adoption of internal free trade induces union members to reduce their external tariffs below the Kemp–Wan [J. Int. Econom. 6 (1976) 95–97] level, and causes ROW’s terms of trade to improve and its welfare...

We examine the profitability of two-part tariffs in name-your-own-price (NYOP) markets using incentivecompatible laboratory experiments. An NYOP seller who uses a two-part tariff charges an upfront nonrefundable bidding fee akin to an entrance fee into his store. We find two-part tariffs can be profitable to NYOP sellers, and we identify a strong moderator of this profitability: a decision aid ...

OBJECTIVE To study how the choice of national EQ-5D tariff may affect utility and incremental quality-adjusted life-year (QALY) estimates. METHODS South Swedish rheumatoid arthritis patients in an observational study, starting and continuing anti-tumour necrosis factor (TNF) monotherapy (n=54) or anti-TNF plus methotrexate (n=215) for 1 year during May 2002 to April 2009, were included. EQ-5D...

This paper explores the implications of reductions in tariffs or transport costs on the rate of innovation in a quality ladders model where Þrms from both countries innovate. If a country raises its tariffs, its wage rises relative to the other country and its Þrms become technology leaders for a larger fraction of products, but the aggregate rate of innovation falls. If transport costs fall sy...

This paper addresses mobile service pricing and affordability issues in China. Taking history as a mirror, it shows individual tariffs existed at the dawn of telephony. A vision of future mobile services with individual tariffs is formalized which will suit specially well the culture of communities rooted in Chinese traditions. An analysis of current tariff conditions in China shows community-b...

Embodied carbon tariffs tax the direct and indirect carbon emissions embodied in trade — an idea popularized by countries seeking to extend the reach of domestic carbon regulations. We investigate their effectiveness using simulations from an applied general equilibrium model of global trade and energy use. We find that the tariffs do reduce foreign emissions, but their ability to improve the g...

Unilateral carbon policies are inefficient due to the fact that they generally involve emission reductions in countries with high marginal abatement costs and because they are subject to carbon leakage. In this paper, we ask whether the use of carbon tariffs — tariffs on the carbon embodied in imported goods — might lower the cost of achieving a given reduction in world emissions. Specifically,...

Fifty-eight years ago, Harberger (1954) estimated that the costs of monopoly, which resulted from misallocation of resources across industries, were trivial. Others showed the same was true for tariffs. This research soon led to the consensus that monopoly costs are of little significance–a consensus that persists to this day. This paper reports on a new literature that takes a different approa...