Trade and Linked Exchange; Price Discrimination Through Transaction Bundling
In this paper we try to explain how price discrimination can cause bilateral trade patterns of the type seen under countertrade agreements. We interpret countertrade as a form of transaction bundling, which can discriminate between potential trading partners, and we combine characteristics from two explanations as to the existence of countertrade: Price discrimination through transaction bundling, and adverse selection arising from the uncertainty in the quality of the goods produced by trading...[Show more]
|Collections||ANU Research Publications|
|Source:||Topics in Theoretical Economics|
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