Heckscher-Ohlin in a Box — Why Trade Patterns Look the Way They Do
Build the two-country, two-good, two-factor Heckscher-Ohlin model from first principles for the Costaria-Boravia pair.
Two countries discover that even when one is better at everything, both gain from specialising and trading according to comparative advantage. Then they confront the distributional politics — who inside each country wins, who loses, and which compensation mechanism preserves the larger pie.
An intermediate simulation for participants who already know the core concepts of the subject, designed for master's and MBA programmes.
The decisions participants make during the simulation:
What participants follow on screen as the rounds go by:
Designed for courses in International Economics.
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