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Toraubally, W. 
ORCID: 0000-0002-2684-7360,
2017.
Strategic market games and Ricardo.
Economics Bulletin, 37 (4), pp. 2517-2525.
ISSN 1545-2921
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Abstract
We develop a Ricardian market game to show that in non-Walrasian economies, the Law of Comparative Advantage (LCA) à la Ricardo-Haberler (1817; 1936) can fail. Trade is driven, not by comparative advantages, but by strategic behaviour. This leads to a new and somewhat surprising result: it is shown in a Ricardian economy that at equilibrium, by both exporting and importing goods in which they have a comparative disadvantage, countries can Pareto improve on when they specialise as per the LCA, which in turn Pareto dominates autarky.
| Item Type: | Journal article | ||||
|---|---|---|---|---|---|
| Publication Title: | Economics Bulletin | ||||
| Creators: | Toraubally, W. | ||||
| Publisher: | Economics Bulletin | ||||
| Date: | 19 November 2017 | ||||
| Volume: | 37 | ||||
| Number: | 4 | ||||
| ISSN: | 1545-2921 | ||||
| Identifiers: |
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| Rights: | Attribution 4.0 International (CC BY 4.0). | ||||
| Divisions: | Schools > Nottingham Business School | ||||
| Record created by: | Jonathan Gallacher | ||||
| Date Added: | 08 Apr 2022 15:36 | ||||
| Last Modified: | 08 Apr 2022 15:36 | ||||
| URI: | https://irep.ntu.ac.uk/id/eprint/46081 |
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