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Trade and Linked Exchange; Price Discrimination Through Transaction Bundling

Dassiou, Xeni; Choi, Chong Ju; Maldoom, Dan


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]

CollectionsANU Research Publications
Date published: 2004
Type: Journal article
Source: Topics in Theoretical Economics


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