Trade and Imperfect Competition in General Equilibrium

Arbeitspapier

This paper employs a general equilibrium model of imperfect competition and trade in which capital is used to establish firms and labor is used for production. We show that two different types of equilibria may exist, one with factor price equalization and one with different factor prices. When factor prices are equalized, trade improves welfare under relatively mild conditions. However, if factor prices differ, these conditions are not sufficient for mutual gains from trade.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 3543

Classification and Topics

• Classification: Wirtschaft ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation ; General Equilibrium and Disequilibrium: General
• Subject: imperfect competition ; international trade ; general equilibrium ; Unvollkommener Wettbewerb ; Außenwirtschaftstheorie ; Allgemeines Gleichgewicht ; Faktorpreisausgleich ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Koska, Onur A. ; Stähler, Frank
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/49499
• Last update: 10.03.2025, 11:41 AM CET