EconPapers    
Economics at your fingertips  
 

An Elementary Theorem on Gains from Virtual Trade

Sugata Marjit and Lei Yang

MPRA Paper from University Library of Munich, Germany

Abstract: Virtual markets allow consumers to save time costs to purchase goods and services. Countries lose relative to the conventional welfare gain when they increase consumption of non-virtual goods under free trade. We include the classical gains from trade theorem as a special case. For two identical countries that have same endowment and technology, the income difference between them can generate trade when we consider the time cost of purchasing goods. The rich country exports the non-virtual good and imports the virtual good while the poor country exports the virtual good and imports the non-virtual good.

Keywords: Virtual Trade; Time Cost (search for similar items in EconPapers)
JEL-codes: F10 O30 (search for similar items in EconPapers)
Date: 2020-11-11
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/104088/1/MPRA_paper_104088.pdf original version (application/pdf)

Related works:
Working Paper: An Elementary Theorem on Gains from Virtual Trade (2020) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:104088

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2025-03-22
Handle: RePEc:pra:mprapa:104088