Title: Reciprocated unilateralism in trade reforms with majority voting
Description: "This paper shows how unilateral liberalization in one country can increase the voting support for reciprocal reduction in trade barriers in a partner country.  When trade policies are determined simultaneously in the two countries, we show the possibility of multiple political equilibria - countries may both be protectionist or trade freely with each other.  Starting with trade protection in both countries, a unilateral reform in one country is thus shown to bring about a free trade equilibrium (a self-enforcing state) that is consistent with majority voting in both countries"--National Bureau of Economic Research web site.
Subjects: Commercial policy, Free trade