Antràs, Pol; Costinot, Arnaud - In: The Quarterly Journal of Economics 126 (2011) 3, pp. 1319-1374
This paper develops a simple model of international trade with intermediation. We consider an economy with two islands and two types of agents, farmers and traders. Farmers can produce two goods, but to sell these goods in centralized (Walrasian) markets, they need to be matched with a trader,...