International Trade in General Oligopolistic Equilibrium

J. Peter Neary

No 5671, CESifo Working Paper Series from CESifo

Abstract: This paper presents a new model of oligopoly in general equilibrium and explores its implications for positive and normative aspects of international trade. Assuming “continuum-Pollak” preferences, the model allows for consistent aggregation over a continuum of sectors, in each of which a small number of home and foreign firms engage in Cournot competition. I show how competitive advantage interacts with comparative advantage to determine resource allocation, and, specializing to continuum-quadratic preferences, I explore the model’s implications for the gains from trade, for the distribution of income between wages and profits, and for production and trade patterns in a two-country world.

Keywords: Continuum-Pollak preferences; Continuum-quadratic preferences; GOLE (General Oligopolistic Equilibrium); market integration; trade and income distribution (search for similar items in EconPapers)
JEL-codes: F10 F12 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: International Trade in General Oligopolistic Equilibrium (2016)
Working Paper: International Trade in General Oligopolistic Equilibrium (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_5671

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