STRATEGIC TRADE-POLICY UNDER UNCERTAINTY - SUFFICIENT CONDITIONS FOR THE OPTIMALITY OF AD-VALOREM, SPECIFIC AND QUADRATIC TRADE TAXES

In most previous work on strategic trade policy the form of government intervention has been prescribed in advance. In this paper, we apply a solution concept discussed by Klemperer and Meyer for games in which the strategy space consists of the class of all (non state-contingent ) price quantity schedules. We examine a series of specific assumption s on demand and supply conditions and derive the associated equilibriu m trade policies. We derive welfare implications for all cases examine d.