Appendix to Chapter 9

Giancarlo Gandolfo

Chapter Chapter 23 in International Trade Theory and Policy, 2014, pp 503-525 from Springer

Abstract: Abstract We examine Falvey’s model (Falvey, 1981). For the reader’s convenience we report here Eqs. (9.1) from the text: $$\displaystyle{ \begin{array}{c} p_{1}(\alpha ) = W_{1} +\alpha R_{1}, \\ p_{2}(\alpha ) = W_{2} +\alpha R_{2},\end{array} }$$ where α is a continuous index over the interval $$\underline{\alpha },\overline{\alpha }$$ ; the units are chosen such that the production of one unit of α requires the input of α units of capital and one unit of labour.

Keywords: Nash Equilibrium; Home Country; Transport Cost; Marginal Revenue; Limit Price (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sptchp:978-3-642-37314-5_23

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DOI: 10.1007/978-3-642-37314-5_23

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