All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

David A. Hennessy and Harvey E. Lapan
''Taste Asymmetries and Trade Patterns''
( 2003, Vol. 4 No.28 )
We study trade patterns in a pure exchange economy where preferences are symmetric up to taste intensity parameters. In a 2-person, 2-good endowment economy, then all endowments in a particular Edgeworth box rectangle require trading out of that rectangle. Under strictly quasi-concave preferences, trade will occur away from a larger area of initial endowments. The identified area is larger still when preferences are homothetic and identical up to taste intensity parameters. Implications for the factor price equalization theorem are explored.
Keywords: general equilibrium
JEL: D5 - General Equilibrium and Disequilibrium: General
Manuscript Received : Jun 12 2003 Manuscript Accepted : Jun 16 2003

  This abstract has been downloaded 2098 times                The Full PDF of this paper has been downloaded 156026 times