Constantinos Syropoulos

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In many economic environments agents make costly and irreversible investments (in``guns'') that may enhance their respective threat payoffs but also shrink the utility possibilities set. In such settings, with variable threats and a variable utility possibilities set, it becomes possible to rank different bargaining solutions in terms of efficiency. We(More)
We construct a three-country model to determine how the formation of free trade areas (FTAs) affects optimal tariffs and welfare. We find that, at constant rest of the world (ROW) tariffs, the adoption of internal free trade induces union members to reduce their external tariffs below the Kemp – Wan [J. Int. Econom. 6 (1976) 95 – 97] level, and causes ROW's(More)
Keywords: Trade openness Domestic disputes Resource insecurity Peaceful settlement Open conflict Shadow of the future a b s t r a c t We explore the severity of an ongoing dispute over a productive resource within a country that participates in world trade. In addition to arming, the contending groups in our setting choose either to engage in destructive(More)
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