See the legend for Panel A for details. mean median France Germany difference t-value France Germany difference z-value full sample 0.
This first test passes easily.
25) as the Nash equilibrium tariffs, since they are the best response by each country given the tariff choice of the other. The question then arises as to how the politically optimal tariffs (which ignore the terms of trade effects) compare with the Nash equilibrium tariffs (which incorporate these effects).