A Ricardian model of international trade with oligopolistic competition

Haiwen Zhou

The Journal of International Trade & Economic Development, 2010, vol. 19, issue 4, 499-515

Abstract: This paper studies a Ricardian model of international trade with a continuum of products in a general equilibrium model in which firms engage in oligopolistic competition. It provides a bridge between trade models based on perfect competition and models based on imperfect competition. Compared with a model based on perfect competition, the incorporation of fixed cost leads to the result that an increase of domestic labor may increase the relative wage of the domestic country.

Keywords: comparative advantage; Ricardian model; oligopolistic competition; increasing returns to scale; trade policy (search for similar items in EconPapers)
Date: 2010
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Working Paper: A Ricardian Model of International Trade with Oligopolistic Competition (2018)
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DOI: 10.1080/09638199.2010.506337

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