We present a new tariff-game rule and a new numéraire rule in Krugman's celebrated model to form symmetric trading blocs. We hold that to maintain logical consistency in a world of symmetric trading blocs, an individual bloc should act on the actions of other individual external blocs in a...

We show that in an n×n tridiagonal matrix T that has a positive dominant diagonal and negative super- and sub-diagonals, there exists a strictly positive x0 that satisfies the system Tx=b, b≧0 and b≠0. Furthermore, if T is symmetric, the components of x can be ranked under certain...

This note derives a new formula for determining a monopolist's optimal multi-tier pricing scheme for any given number of tiers. It further characterizes Gabor's (1955, Review of Economic Studies) two-tier pari passu marginal revenue function to the n-tier case. By introducing the individual...

In a symmetric model of free-trade blocs, the seemingly innocuous normalization rule by setting the world price of a given good as the numéraire will cause asymmetry in the Nash equilibrium. This paper presents a new symmetric tariff game approach and a new price normalization rule that are...

As the formal process of Brexit has already started, there is much uncertainty about Brexit's impacts on Britain's social, political, and economic future. This paper examines the economic impact. After briefly discussing some significant EU treaties that serve as the background materials, it...

This paper examines the optimal specific tax/subsidy policy for a monopoly under multi-tier pricing. It shows, among others, that an increase in a specific tax on any tier will raise (reduce) the cumulative output of preceding (succeeding) tiers in the non-uniform scheme. In contrast, increasing...

The modeling of monopolistic competition has contributed to rapid developments in numerous fields of economics, notably macroeconomics, international trade, industrial organization, economic growth and economic geography. This paper provides a brief survey and synthesis of the original...