IDEAS home Printed from https://ideas.repec.org/a/cje/issued/v39y2006i2p516-543.html
   My bibliography  Save this article

Decentralized international exchange

Author

Listed:
  • Robert Reed
  • Kathleen Trask

Abstract

We utilize a random-matching model to examine the relationships between market frictions and international trade. In our setting, an individual may choose to search abroad where she may have a cost advantage, but is less likely to meet potential trading partners, owing to higher market frictions. Interestingly, we find that international trade may be associated with lower welfare than autarky. We show how this is due to price distortions resulting from bargaining when there are opportunities for exchange across countries.

Suggested Citation

  • Robert Reed & Kathleen Trask, 2006. "Decentralized international exchange," Canadian Journal of Economics, Canadian Economics Association, vol. 39(2), pages 516-543, May.
    • Handle: RePEc:cje:issued:v:39:y:2006:i:2:p:516-543
    DOI: 10.1111/j.0008-4085.2006.00358.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.0008-4085.2006.00358.x
    Download Restriction: access restricted to subscribers
    File URL: https://libkey.io/10.1111/j.0008-4085.2006.00358.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cje:issued:v:39:y:2006:i:2:p:516-543. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prof. Werner Antweiler (email available below). General contact details of provider: https://edirc.repec.org/data/ceaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.