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Intra-Industry Trade in Identical Commodities

James A. Brander

Working Papers from Queen's University, Department of Economics

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.

Date: 1980
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Persistent link: http://EconPapers.repec.org/RePEc:qed:wpaper:380

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