The Structure and Performance of the World Market in a Cobb-Douglas Example

Benjamin Zissimos

No 623, Vanderbilt University Department of Economics Working Papers from Vanderbilt University Department of Economics

Abstract: In an international trading economy where countries set tariffs strategically, modeled using a Cobb-Douglas example, this paper studies the relationship between the structure and the performance of the world market. Using new results from monotone comparative statics in a Shapley-Shubik market game, replication of such an international trading economy is studied. It is shown that, as the economy is replicated, the equilibrium converges monotonically towards the equilibrium of a competitive equilibrium model of international trade. The distributional implications of replication are also evaluated.

Keywords: Efficiency; market structure; market game; tariff war; welfare (search for similar items in EconPapers)
JEL-codes: C73 F02 F13 F15 (search for similar items in EconPapers)
Date: 2006-11
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Persistent link: https://EconPapers.repec.org/RePEc:van:wpaper:0623

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