Abstract

This paper considers the interaction between private information and the Most Favored Nation clause in trade negotiations. It demonstrates that by aggregating uncertainty over a number of trading partners, the Most Favored Nation clause may offer a welfare improvement over a set of bi-lateral trade negotiations. This improvement is shown to be most pronounced when a large number of countries are involved in negotiations.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.