Managed Trade with Imperfect Information

25 Pages Posted: 1 Mar 2010

See all articles by Gal Hochman

Gal Hochman

Rutgers University; University of California, Berkeley

Ella Segev

Ben-Gurion University of the Negev - Department of IE&M


This article illustrates the importance of imperfect information in self-enforcing trade agreements. It shows that expected welfare is higher with current period uncertainty, and a high level of uncertainty may even undermine the need for a safeguard clause. These results were derived by extending the seminal paper by Bagwell and Staiger (The American Economic Review 80 (1990), 779–95) to account for current period uncertainty.

Suggested Citation

Hochman, Gal and Segev, Ella, Managed Trade with Imperfect Information. International Economic Review, Vol. 51, Issue 1, pp. 187-211, February 2010, Available at SSRN: or

Gal Hochman (Contact Author)

Rutgers University ( email )

New Jersey
United States
(848) 932-9142 (Phone)


University of California, Berkeley ( email )

340 Giannini Hall
University of California, Berkeley
Berkeley, CA 94720
United States
(510) 289-0907 (Phone)


Ella Segev

Ben-Gurion University of the Negev - Department of IE&M ( email )

1 Ben-Gurion Blvd
Beer Sheva, 84105

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