Comparative advantage and strategic specialization

• المؤلف الرئيسي: Kang, Minwook
• مؤلفون آخرون: School of Social Sciences
• التنسيق: مقال
• اللغة: English
• منشور في: 2019
• الموضوعات: Nash Equilibrium; DRNTU::Social sciences::Economic theory::International trade; Cobb–Douglas
• الوصول للمادة أونلاين: https://hdl.handle.net/10356/105738; http://hdl.handle.net/10220/48741; http://dx.doi.org/10.1111/roie.12300
• المؤسسة: Nanyang Technological University

This paper shows that a strong comparative advantage is necessary for free trade and specialization in a 2 × 2 symmetric Ricardian model to be achieved in a Nash equilibrium. Governments strategically control labor distribution across industries, and representative agents maximize Cobb–Douglas utili...