Patterns of Trade and Oligopoly Equilibria: An Example

Tito Cordella

Review of International Economics, 1998, vol. 6, issue 4, 554-63

Abstract: This paper investigates, via an example, the effects of oligopolistic competition in a two-country two-good "Ricardian" model of international trade. By contrast, with results that apply to the competitive free-trade equilibrium, at the oligopoly equilibrium industries with different technologies can profitably survive. Moreover, it is shown that, in an oligopolistic setting, the pattern of trade cannot be inferred either by pre-trade prices or by the comparative advantage principle. Copyright 1998 by Blackwell Publishing Ltd.

Date: 1998
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Working Paper: Patterns of trade and oligopoly equilibria: an example (1992)
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