Existence of trading Nash equilibrium in
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Siu-kee Wong
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Article
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2004
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Elsevier Science
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English
β 342 KB
The paper considers a tariff retaliation model in which two countries set tariffs strategically in an exchange economy. In the classes of homothetic and quasi-linear preferences, I find conditions that guarantee existence of a trading Nash equilibrium. These conditions imply that the offer curves of