Trade Agreements as Endogenously Incomplete Contracts
构建了一个考虑签约成本的贸易协定模型，指出最优协定可能是不完全的，并解释了现实贸易协定的关键特征。
We propose a model of trade agreements in which contracting is costly, and as a consequence the optimal agreement may be incomplete. In spite of its simplicity, the model yields rich predictions on the structure of the optimal trade agreement and how this depends on the fundamentals of the contracting environment. We argue that taking contracting costs explicitly into account can help explain a number of key features of real trade agreements.