Identifying the Gains from Pure Intra‐Industry Exchange

Abstract

This article modifies a framework developed in industrial organisation analysis to identify the nature of the gains associated with pure intra‐industry exchange, and to isolate the factors which may influence their magnitude. The analysis suggests that since the magnitude of any gains is dependent on a number of variables no general statements can be made about the gains from intra‐industry exchange relative to inter‐industry exchange.

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