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Multilateral Tariff Negotiations when Production is Fixed

Multilateral Tariff Negotiations when Production is Fixed

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This paper contributes to analysis of the extent to which multilateral trading agreements reached under GATT can liberalize the world economy. Its main conclusion is that free trade is not sustainable if production is fixed exogenously and utility is non-transferable. If production is fixed and utility is transferable, free trade is possible but is not necessary for maximization of welfare.

Ⅰ. Introduction

Ⅱ. The Model

Ⅲ. Effects of Bilateral and Multilateral Cooperation on Tariffs and Welfare

Ⅳ. Influence of the Firms sizes and the Transferability of Utility on Cooperativeness

Ⅴ. Concluding Remarks

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