Intra-Industry Trade in Identical Commodities

Preprint

preprint

Published in RePEc

Abstract

The usual approach to intra-industry trade is to assume such trade arises because slightly different commodities are produced and traded to satisfy consumers' tastes for variety. This paper shows there are reasons to expect two-way trade even in identical products, due to strategic interaction among firms.

Keywords

IDENTICAL COMMODITIES
INTRA INDUSTRY TRADE
TRADE IN IDENTICAL
USUAL APPROACH
EXPECT TWO
TASTES

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Version 1, RePEc

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