【摘要】The article presents research on a partial equilibrium model of intra-industry trade within a vertical differentiation framework. Topics include consumers' non-homothetic preferences as a driving factor for intra-industry trade; utility maximization of consumers; profit maximization of firms; the effects of income levels on consumer choices; product quality; and transportation costs in Krugman's home market effect which compares the costs of domestic versus foreign trade.

【文献来源】Gencer E A H;Anderson W P.Annals of regional Science.2014（1）