# price definition

## Definition

### Economics

- A method of defining relative factor abundance based on ratios of factor prices in autarky: Compared to country B, country A is abundant in factor X relative to factor Y iff w
_{X}^{A}/w_{Y}^{A}<_{X}^{B}/_{Y}^{B}, where w_{I}^{J}is the autarky price of factor I in country J, I=X,Y, J=A,B. This is also known as the "__Ohlin definition__," since it is the one used by Ohlin (1933).