摘要：We use a multicountry asymmetric oligopolistic framework for segmented markets to study the welfare effects of reducing tariff discriminations—which we call a move toward Most Favored Nation tariffs. In our basic framework initial tariffs are arbitrary, and we consider unilateral reforms without and with reciprocity/retaliation. We extend the basic framework to allow for revenue constraints, unemployment, and the case where the initial tariffs are at Nash‐optimal levels. We also consider multilateral reforms in the last scenario. Conditions under which such harmonizations are potentially Pareto‐improving are derived and results compared across scenarios. Each scenario makes a significant difference to qualitative results. (JEL F10, F11, F13, H21, H3, H41)
