Modeling Tariff to Analyze Protectionism

The modeling of trading wars is now an actual and modern problem although the first works on optimization of the custom duties date back to the end of the 19th century. The problem of reducing the number of possible solutions to the conflict and precise identifying of the optimal strategies is important. Applying a mathematical model makes the problem more formal, allows removing political tension in search of optimum solutions to all participants of the trading conflict. We consider that the some country sells a product manufactured both in the country and abroad to other countries. The country-consumer of the product faces a choice of the import regulation in relation to the situation by means of the import duty size. A goal of such regulation may be the income of taxes and customs payments or the growth of the domestic manufacturer part in sales volumes. A goal of the importer achieves by the import volume variation is either profit, or a number of workplaces in the countries making the imported product. AMS Subject Classification: 91B60, 91B64, 91B44, 91B02, 91B66