We consider the industry-level use of inputs, per unit of gross output, in a Heckscher-Ohlin-Samuelson model in which not only land and labour but the two produced commodities are used as inputs. The rate of interest is zero throughout and all the standard assumptions are made. When alternative...

It is a fact of life that economic resources are used to alter other's preferences over commodities. Yet this is seldom taken into account in basic economic theory, explanatory or normative. It is shown here how a certain type of advertising is readily allowed for in the Edgeworth exchange box,...