We present a simple two(-country) by two(-good) differental game model of international trade in which the governments of the two countries play a tariff-setting game. We explicitly derive a unilateral optimum tarifff rate and then a Markov-perfect equilibrium pair of tariff strategies...

In this paper, we complement the work of Kemp and Shimomura (2002) by considering the case of many donors playing a dynamic non-cooperative game of foreign aid. We consider two models. Model 1 deals with the case where donor countries continually feel the warm glow of from the act of giving....

Oil companies often announce revised estimates of their reserves. This indicates that stock uncertainty is a prevalent feature of natural resource industries. In this paper we consider the multi-deposit case where resource extraction produces information about the size of reserves. We show that...

This paper provides a concise guide to dynamic optimization with an integral treatment on various optimal control and dynamic programming problems. It presents essential theorems and methods for obtaining and characterizing solutions to these problems. The paper discusses Pontryagin's maximum...

This paper discusses the key ingredients of WTO antidumping, countervailing, and safeguard measures, and corresponding U.S. trade laws. It explores a number of shortcomings of current U.S. antidumping laws, including the cost- and price-based dumping criteria and the inevitable excessive...

This paper discusses WTO's trade dispute settlement procedure. It also discusses NAFTA's unique dispute settlement system that subjects antidumping and countervailing duty determinations to binational panel reviews instead of the more conventional judicial reviews. The paper then studies seven...

The EU is a unique economic and political partnership between 27 democratic European countries. It has accomplished a great deal in promoting peace, prosperity, justice, freedom, solidarity, and participatory democracy for its 498 million citizens. The eurozone showcases the achievement of its...

The objective of this paper is to find the significant factors that crucially affect a firm's optimal transfer pricing policy. To achieve such a goal, it suffices to examine three minimalist vertical models: the first one contains a vertically integrated monopoly in both input and output...

This paper investigates a stepwise tax/subsidy structure on a monopoly practicing quantity discounts. It covers four tax/subsidy systems: uniform and non-uniform schemes, each under specific and ad valorem regimes. The effects of an exogenous change in a tier's tax rate on the optimal tier sizes...

Whereas international joint venture is a dominated strategy in the property rights theory of the firm, this article shows that it can be optimal in the presence of contractual and financial frictions. We use the data of Chinese foreign affiliates to test and support our key theoretical result...