Two-tier asymmetric information as a motive for trade, trade policies, and inefficient trade agreements

dc.creatorBouët, Antoine
dc.creatorLaborde Debucquet, David
dc.creatorMartimort, David
dc.date2014
dc.date2024-08-01T02:52:06Z
dc.date2024-08-01T02:52:06Z
dc.date.accessioned2026-06-27T15:09:06Z
dc.descriptionThis theoretical paper intends to provide an explanation of the implementation of behind-the-border policies, border policies, and of the inefficiency of trade negotiations. We consider a general equilibrium model of international trade with two identical countries, two commodities, a terms-of-trade externality, and a double-tier informational problem. First, domestic producers have private information on their technology. This first layer of asymmetric information affects the design of behind-the-border policies. To reduce the information rent of those producers and ease incentive compatibility constraints, behind-the-border policies must contract domestic supply. Autarky prices are thus modified so that international trade appears. The informationally sensitive sector becomes an import sector and the more so, the greater the political influence of high-cost producers.
dc.formatapplication/pdf
dc.identifierhttps://hdl.handle.net/10568/150501
dc.identifier.urihttp://hdl.handle.net/123456789/96061
dc.languageen
dc.publisherInternational Food Policy Research Institute
dc.relationhttps://doi.org/10.1093/ej/ueaa085
dc.relationhttps://hdl.handle.net/10568/162000
dc.relationhttps://hdl.handle.net/10568/161920
dc.relationhttps://hdl.handle.net/10568/153439
dc.relationhttps://hdl.handle.net/10568/160868
dc.relationhttps://doi.org/10.2499/0896295109fprev8
dc.relationIFPRI Discussion Paper
dc.rightsOpen Access
dc.sourceBouët, Antoine; Laborde Debucquet, David; Martimort, David. 2014. Two-tier asymmetric information as a motive for trade, trade policies, and inefficient trade agreements. IFPRI Discussion Paper 1383. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/150501
dc.subjectmathematical models
dc.subjectpolicies
dc.subjectmarkets
dc.subjecttrade policies
dc.subjecttrade
dc.subjecttrade agreements
dc.subjectinternational trade
dc.subjecttariffs
dc.titleTwo-tier asymmetric information as a motive for trade, trade policies, and inefficient trade agreements
dc.typeWorking Paper

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