Multiproduct Oligopoly and Trade Between Asymmetric Countries

Yi-Ling Cheng and Akihiko Takahashi
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Yi-Ling Cheng: Department of Economics, Tunghai University and Academia Sinica
Akihiko Takahashi: Faculty of Economics, The University of Tokyo

No CIRJE-F-1023, CIRJE F-Series from CIRJE, Faculty of Economics, University of Tokyo

Abstract: This paper develops a general equilibrium model of oligopolistic multiproduct Â…firms conducting trade between asymmetric countries, in which heterogeneous Â…firms entrants choose their product ranges and outputs. We show that there are fewer exporters in the larger country, and each produces a wider range of products but exports fewer varieties. We also show that while trade liberalization increases the total number of consumed varieties, it decreases the total number of Â…rms and may reduce the product range of each Â…firm.

Pages: 23 pages
Date: 2016-09
New Economics Papers: this item is included in nep-ind and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:tky:fseres:2016cf1023

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