Oligopolistic Competition, Firm Heterogeneity, and the Impact of International Trade

Haiwen Zhou

MPRA Paper from University Library of Munich, Germany

Abstract: This paper studies the impact of international trade in a general equilibrium model in which heterogeneous firms engage in oligopolistic competition. An increase of the size of the market leads to a decrease of the equilibrium price and an increase of per capita consumption. The opening of international trade leads to an increased degree of competition, a lower price level, and the exit of least efficient firms. Though average profit increases, not all the surviving firms benefit from the opening of international trade.

Keywords: Firm heterogeneity; oligopolistic competition; international trade; increasing returns to scale (search for similar items in EconPapers)
JEL-codes: F12 F15 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (6)

Published in Eastern Economic Journal 1.36(2010): pp. 107-119

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Journal Article: Oligopolistic Competition, Firm Heterogeneity, and the Impact of International Trade (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:77667

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