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The paper presents a model of international trade in goods that are ranked by quality. The model differs from existing theories of trade under vertical product differentiation in several ways. The main difference is in the way quality is modeled. But this paper also has different positive implications for the pattern of trade and it provides a theoretical explanation for Leontief Paradox-type empirical findings. The model indicates that several of the most important empirical challenges faceddoi:10.1080/10168739800000032 fatcat:e437w6zapjhblnfnnsrkjwqljy