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Intra-Industry Trade in Identical Commodities

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  • James Brander

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.

Suggested Citation

  • James Brander, 1980. "Intra-Industry Trade in Identical Commodities," Working Paper 380, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:380
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    References listed on IDEAS

    as
    1. Michael Spence, 1976. "Product Selection, Fixed Costs, and Monopolistic Competition," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 43(2), pages 217-235.
    2. Dornbusch, Rudiger & Fischer, Stanley & Samuelson, Paul A, 1977. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," American Economic Review, American Economic Association, vol. 67(5), pages 823-839, December.
    3. R. J. Ruffin, 1971. "Cournot Oligopoly and Competitive Behaviour," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 38(4), pages 493-502.
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