Reason. the literature in this area can be difficult to follow. This survey provides a stylized overview of the area which serves as a guide to the work. Short run effects are contrasted to long run effects. The short run effects usually studied are on pricing behavior. Long run effects are multidimensional. These include effects on quality choice and investment which often work in the opposite direction to the short run effects.

In recent years uniform tariffs have become increasingly popular but economists have not formulated a rationale that demonstrates their superiority to alternative tariff structures. Do strong political economy arguments exist that favor uniform tariffs?