Nottingham Centre for Research on
Globalisation and Economic Policy (GEP)

GEP Research Paper 06/18

Fragility of Comparative Advantage in Higher Dimensions: An Experimental Investigation

Baboo M Nowbutsing

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

Issued in June 2006.

This paper is available in PDF format .

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