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- W3149602046 abstract "We use the two-factor, two-sector, two-country model of Melvin and Warne (1973) and Markusen (1981), in which the production of one good is monopolized in each country, in order to investigate the role of the price normalization. We illustrate several puzzling effects that occur if the price normalization is changed. However, we show that Markusen´s result on the direction of the trade flow between two proportional countries with constant returns to scale is robust with respect to the choice of the normal- ization rule. To overcome the price normalization problem in international trade we suggest to use the concept of real wealth maximization." @default.
- W3149602046 created "2021-04-13" @default.
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- W3149602046 date "2003-01-01" @default.
- W3149602046 modified "2023-09-28" @default.
- W3149602046 title "Cournot-Nash Competition in a General Equilibrium Model of International Trade" @default.
- W3149602046 hasPublicationYear "2003" @default.
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