Fragility of Comparative Advantage in Higher Dimensions: An Experimental Investigation

Nowbutsing, Baboo M.

doi:10.2139/ssrn.912492

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Fragility of Comparative Advantage in Higher Dimensions: An Experimental Investigation

University of Nottingham Research Paper No. 2006/18

41 Pages Posted: 7 Jul 2006

See all articles by Baboo M. Nowbutsing

Baboo M. Nowbutsing

University of Nottingham

Abstract

Noussair et al (1995) invoked a trading environment similar to the 2 x 2 Ricardian model and observed the law of comparative advantage. In this experiment, we apply the same experimental setting but increase the number of goods and countries. We report an experiment to test a 3 x 3 Competitive Ricardian Model (CRM). The patterns of trade and output predicted by the law of comparative advantage are not observed evolving within the experimental markets

Keywords: Competitive Ricardian Model, Experiments

JEL Classification: F11, C92

Suggested Citation: Suggested Citation

Nowbutsing, Baboo M., Fragility of Comparative Advantage in Higher Dimensions: An Experimental Investigation. University of Nottingham Research Paper No. 2006/18, Available at SSRN: https://ssrn.com/abstract=912492 or http://dx.doi.org/10.2139/ssrn.912492