Taste Asymmetries and Trade Patterns
We study trade patterns in a pure exchange economy where preferences are symmetric up to taste intensity parameters. In a 2-person, 2-good endowment economy, then all endowments in a particular Edgeworth box rectangle require trading out of that rectangle. Under strictly quasi-concave preferences, trade will occur away from a larger area of initial endowments. The identified area is larger still when preferences are homothetic and identical up to taste intensity parameters. Implications for the factor price equalization theorem are explored.
|Date of creation:||20 Sep 2002|
|Date of revision:|
|Publication status:||Published in Economics Bulletin, June 2003, vol. 4|
|Contact details of provider:|| Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070|
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Samuelson, Paul A & Swamy, S, 1974. "Invariant Economic Index Numbers and Canonical Duality: Survey and Synthesis," American Economic Review, American Economic Association, vol. 64(4), pages 566-93, September.
- Balasko, Yves, 1990.
"Equivariant general equilibrium theory,"
Journal of Economic Theory,
Elsevier, vol. 52(1), pages 18-44, October.
- Yves Balasko, 1989. "Equivariant General Equilibrium Theory," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 89.08, Institut d'Economie et Econométrie, Université de Genève.
- Yves Balasko, 1988. "Equivariant General Equilibrium Theory," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 88.05, Institut d'Economie et Econométrie, Université de Genève.
- Herings P. Jean-Jacques & Peeters R., 1999. "A Differentiable Homotopy to Compute Nash Equilibria of n-Person Games," Research Memorandum 038, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Chambers,Robert G. & Quiggin,John, 2000.
"Uncertainty, Production, Choice, and Agency,"
Cambridge University Press, number 9780521622448, December.
- Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680, December.
- David A. Hennessy & Harvey E. Lapan, 2003.
"Technology Asymmetries, Group Algebra, and Multiplant Cost Minimization,"
Western Economic Association International, vol. 41(1), pages 183-192, January.
- Hennessy, David A. & Lapan, Harvey E., 2003. "Technology Asymmetries, Group Algebra and Multi-Plant Cost Minimization," Staff General Research Papers Archive 5103, Iowa State University, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:isu:genres:10040. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Curtis Balmer)
If references are entirely missing, you can add them using this form.