Equilibrium existence in Krugman’s and Bertoletti–Etro’s trade models: the general case

Fedor Slepov () and Sergey Kokovin ()
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Fedor Slepov: HSE University
Sergey Kokovin: HSE University

Economic Theory, 2025, vol. 80, issue 3, No 5, 800 pages

Abstract: Abstract We revisit Krugman’s (J Int Econ 9(4):469–479, 1979.) classical trade model in its general form with several asymmetric countries and unspecified additive utility functions. We present the weakest known conditions on utilities sufficient for the existence of equilibrium. These conditions are also necessary under symmetric preferences. Using the same method for Bertoletti and Etro’s (Econ J 127(603):1217–1243, 2017.) trade model with several asymmetric countries, we establish sufficient conditions on unspecified indirect utilities for the existence of equilibrium.

Keywords: International trade; Monopolistic competition; Variable elasticity of substitution; Variable markups; Existence of equilibrium; Indirect profits (search for similar items in EconPapers)
JEL-codes: D43 F12 L13 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s00199-025-01642-8

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