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Price as indicator for quality?

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This paper examines the relation between price differences and quality differences in an oligopoly model with intra-industry trade, where goods are horizontally as well as vertically differentiated. The analysis demonstrates that the ratio of prices is not linked to the ratio of qualities in any simple way. The paper therefore questions the procedure of using unit value differences between exported and imported goods as criteria for disentangling intra-industry trade in a vertical and a horizontal part.
Original languageEnglish
Publication year2008
Number of pages18
Publication statusPublished - 2008
Event42nd Annual Meetings of the Canadian Economics Association - Vancouver, Canada
Duration: 6 Jun 20088 Jun 2008
Conference number: 42

Conference

Conference42nd Annual Meetings of the Canadian Economics Association
Number42
CountryCanada
CityVancouver
Period06/06/200808/06/2008

    Research areas

  • Horizontal product differentiation; Vertical product differentiation; Intra-industry trade; Price ratio; Quality ratio; Unit values

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ID: 43709