Firm Heterogeneity and International Trade Liberalisation: A Generalized Cournot Oligopoly Approach

Andrzej Cieślik

Central European Economic Journal, 2024, vol. 11, issue 58, 67-78

Abstract: The main goal of this article is to contribute to the theoretical analysis of international trade under imperfect competition using the Cournot oligopoly model with heterogeneous firms. In particular, our objective is to provide some insights into the role of cost asymmetry in studying the effects of trade liberalisation in the Cournot oligopoly framework. In order to introduce firm heterogeneity into the oligopoly model we use the generalised Cournot framework with asymmetric firms that differ in terms of their productivity, levels of output and market shares. We show that trade liberalisation leads to the elimination of less productive firms and results in lower equilibrium prices, higher sales per firm and lower markups in the industry.

Keywords: Cournot oligopoly model; firm heterogeneity; imperfect competition; international trade liberalisation; market structure (search for similar items in EconPapers)
JEL-codes: F12 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/ceej-2024-0007 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:ceuecj:v:11:y:2024:i:58:p:67-78:n:7

DOI: 10.2478/ceej-2024-0007

Access Statistics for this article

Central European Economic Journal is currently edited by Anna Matysiak

More articles in Central European Economic Journal from Sciendo
Bibliographic data for series maintained by Peter Golla ().