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Intra-industry Trade in Identical Commodities

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  • Brander, James A.

Abstract

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

Suggested Citation

  • Brander, James A., 1980. "Intra-industry Trade in Identical Commodities," Queen's Institute for Economic Research Discussion Papers 275158, Queen's University - Department of Economics.
    • Handle: RePEc:ags:queddp:275158
    DOI: 10.22004/ag.econ.275158
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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. 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.
    3. 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.
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