Rethinking Ricardian 'Sum of Enjoyments': Gains from Trade in a Co-Creational Economy

31 Pages Posted: 19 Nov 2013 Last revised: 14 May 2015

See all articles by Avik Chakrabarti

Avik Chakrabarti

University of Wisconsin - Milwaukee

Venkatram Ramaswamy

University of Michigan, Stephen M. Ross School of Business

Date Written: May 1, 2015

Abstract

The Ricardian principle of comparative advantage has long been at the foundation of a wide range of economic models. In the new Internetworked economy where co-creational experiences of value is rapidly gaining momentum, the vision of this principle has weakened. We provide a framework to align economic thinking on the principle of comparative advantage with co-creational value creation embedded at the core. We show how patterns of specialization and the resultant gains from trade, within or across borders, must be sensitive to value gained through co-creational experiences. In particular, an individual’s co-creational experience of value is at the foundation of what we posit as the principle of comparative co-creationaladvantage.

Keywords: Co-creational experience Economics, Specialization through Co- Creation, Diversification through Co-Creation, Gains from Trade through Co-Creation, Principle of Comparative Co-Creational Advantage

JEL Classification: B40, B41, D46, F1

Suggested Citation

Chakrabarti, Avik and Ramaswamy, Venkatram, Rethinking Ricardian 'Sum of Enjoyments': Gains from Trade in a Co-Creational Economy (May 1, 2015). Ross School of Business Paper No. 1211, Available at SSRN: https://ssrn.com/abstract=2356294 or http://dx.doi.org/10.2139/ssrn.2356294

Avik Chakrabarti (Contact Author)

University of Wisconsin - Milwaukee

Bolton Hall 802
3210 N. Maryland Ave.
Milwaukee, WI 53211
United States

Venkatram Ramaswamy

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109-1234
United States
734-763-5932 (Phone)
734-936-0279 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
72
Abstract Views
634
rank
397,286
PlumX Metrics