In this paper, we investigate the impact of economic development on international trade from a theoretical perspective, which considers quality-differentiated products and preference diversity for quality. We model two trading partners, and evaluate the effects of per capita income and technology

indicate the second price auction generates higher valuations than English, Becker–DeGroot–Marschak (BDM), and random nth price auctions, especially in latter bidding rounds, and that random nth price auction yields lower valuations than English and BDM auctions. We find that endowing subjects with a good

We consider the impact of merger on the equilibrium price and quality of products. Consumer demand for both products depends not only on own price and quality, but also on the price and quality of the other product. We consider both the case in which the merging firms produce gross complements

*We thank Kerry Smith, Matt Massey, and seminar participants at North Carolina State University and the Environmental Protection Agency (EPA) for comments and suggestions. All remaining errors are our own. Phaneuf acknowledges financial support from the EPA through contract #R826615010, and Parsons acknowledges financial support from the National Oceanic and Atmospheric Administration (NOAA) through a Delaware Sea Grant. The views expressed in this paper are the authors alone and in no way represent the views of the EPA, NOAA, or BLS.

Abstract: We model demand for quality differentiated goods to derive a relationship between trade costs and the quality composition of trade. Detailed data on traded goods’ prices, quantities and shipping costs for many importers and exporters are used to test these predictions. These data provide

As agricultural products move from being economic commodities to quality-differentiated goods, price dispersion within specific markets increases and implicit subsidies from high quality producers to low quality producers are removed. This paper examines how these distributional effects can

We model demand for quality differentiated goods to derive a relationship between trade costs and the quality composition of trade. Detailed data on traded goods ’ prices, quantities and shipping costs for many importers and exporters are used to test these predictions. These data provide a strong

Bishop all provided very helpful suggestions. Roger Koenker graciously advised us on estimation procedures. The survey could not have been completed without the cooperation and good humor of many electric utility coal purchasing officials. Of course, the authors alone are responsible for the paper

differentiation, only the most productive firms in a developing country like Mexico enter the export market, and they produce a better-quality good for export than for the domestic market in order to appeal to richer developed-country consumers. Producing high-quality goods requires paying high wages both

Should mergers among nonprofit organizations be regulated differently than mergers among for-profit firms? The relevant empirical literature is highly controversial, the theoretical literature is scarce. I analyze the ques-tion by modeling duopoly competition with quality-differentiated goods. I