Playing the Game
Economic Model
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Economic Model

Game simulates Ricardian model of trade with linear production technologies:

= country cís labor endowment,
= country cís production of good g, and
= unit labor requirement of good g in country c.

Consumers in all countries have the same preferences, which we model with a CES utility function

Notice that this utility function includes the logarithmic and the Leontief as limiting cases
(as approaches 0 and )