International Trade in General Oligopolistic Equilibrium

Arbeitspapier

This paper presents a new model of oligopoly in general equilibrium and explores its implications for positive and normative aspects of international trade. Assuming “continuum-Pollak” preferences, the model allows for consistent aggregation over a continuum of sectors, in each of which a small number of home and foreign firms engage in Cournot competition. I show how competitive advantage interacts with comparative advantage to determine resource allocation, and, specializing to continuum-quadratic preferences, I explore the model’s implications for the gains from trade, for the distribution of income between wages and profits, and for production and trade patterns in a two-country world.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 5671

Classification and Topics

• Classification: Wirtschaft ; Trade: General ; Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
• Subject: “Continuum-Pollak” preferences ; Continuum-quadratic preferences ; GOLE (General Oligopolistic Equilibrium) ; market integration ; trade and income distribution

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Neary, J. Peter
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/128378
• Last update: 10.03.2025, 11:43 AM CET