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

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  • Haiwen Zhou

    (Department of Economics, Old Dominion University, Norfolk, VA 23529, USA)

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. Although average profit increases, not all the surviving firms benefit from the opening of international trade.

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Bibliographic Info

Article provided by Palgrave Macmillan in its journal Eastern Economic Journal.

Volume (Year): 36 (2010 Winter)
Issue (Month): 1 ()
Pages: 107-119

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Handle: RePEc:pal:easeco:v:36:y:2010:i:1:p:107-119

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Cited by:
  1. Colacicco, Rudy, 2012. "The "Average" Within-Sector Firm Heterogeneity in General Oligopolistic Equilibrium," MPRA Paper 40212, University Library of Munich, Germany.

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