Please address correspondence to: Gal Hochman, Department of ARE, University of California at Berkeley, Berkeley, CA 94702. E-mail: email@example.com.
MANAGED TRADE WITH IMPERFECT INFORMATION*
Article first published online: 24 FEB 2010
© (2010) by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association
International Economic Review
Volume 51, Issue 1, pages 187–211, February 2010
How to Cite
Hochman, G. and Segev, E. (2010), MANAGED TRADE WITH IMPERFECT INFORMATION. International Economic Review, 51: 187–211. doi: 10.1111/j.1468-2354.2009.00576.x
Manuscript received July 2007; revised August 2008.
- Issue published online: 24 FEB 2010
- Article first published online: 24 FEB 2010
This article illustrates the importance of imperfect information in self-enforcing trade agreements. It shows that expected welfare is higher with current period uncertainty, and a high level of uncertainty may even undermine the need for a safeguard clause. These results were derived by extending the seminal paper by Bagwell and Staiger (The American Economic Review 80 (1990), 779–95) to account for current period uncertainty.