This presentation is part of: D00-1 (2026) Recent Development Issues in Microeconomic Theory

Endogenous Sequencing of Tariff Decisions

Chrysostomos Tabakis, Ph.D., Economics, Universidade Nova de Lisboa, Campus de Campolide, Lisbon, 1099-032, Portugal

This paper examines the timing of "echoing" antidumping cases. We develop a two-stage, three-period model in which two competing importers can choose to select their tariffs with respect to an exporting country in one of two periods. We assume that governments are politically motivated regarding their import-competing industries. We further assume that the degree of their political motivation, captured by a political-economy parameter, is private information. We find that countries endogenously choose to pick their tariffs sequentially if and only if their political-economy parameters differ in relation to a common critical threshold. Otherwise, the countries prefer to select their tariffs simultaneously.