Two cone equilibrium

 

Home
Site Map
Add Term
Search
About Us
Contributors

Two cone equilibrium

A free-trade equilibrium in the Heckscher-Ohlin Model in which prices are such that all goods cannot be produced within a single country, and instead there are two diversification cones. This, or a multi-cone equilibrium, will arise if countries' factor endowments are sufficiently dissimilar compared to factor intensities of industries. Contrasts with one cone equilibrium.



Similar Matches

Equilibrium

Equilibrium

1. A state of balance between offsetting forces for change, so that no change occurs. 2. In competitive markets, equality of supply and demand.


Balance of payments equilibrium

Balance of payments equilibrium

Meaningful only under a pegged exchange rate, this referred to equality of credits and debits in the balance of payments using the traditional definition of the capital account. A surplus or deficit implied changing official reserves, so that something would ultimately have to change.


Nash equilibrium

Nash equilibrium

An equilibrium in game theory in which each player's action is optimal given the actions of the other players. E.g., in a tariff-and-retaliation game, with each country able to improve its terms of trade with a tariff, zero tariffs are not Nash, since each can do better by raising its tariff. A Nash equilibrium, with positive tariffs, is likely to be inferior to free trade for both.


One cone equilibrium

One cone equilibrium

A free-trade equilibrium in the Heckscher-Ohlin Model in which prices are such that all goods can be produced within a single country, and there is only one diversification cone. This will arise if countries' factor endowments are sufficiently similar compared to factor intensities of industries. Contrasts with multi-cone equilibrium.


Equilibrium position

Equilibrium position

Same as equilibrium level, though perhaps of several variables at once, perhaps as displayed in a graph.


Further Suggestions

Disequilibrium
Multi-cone equilibrium
Equilibrium price
Equilibrium exchange rate
General equilibrium
Market equilibrium
Partial equilibrium
Computable general equilibrium
Equilibrium
Equilibrium level
Equilibrium rate of interest


 
All rights Reserved. Do not copy without permission.