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Patterns of trade and oligopoly equilibria: an example

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  • CORDELLA, Tito

    (CORE, Université catholique de Louvain, B-1348 Louvain-la-Neuve, Belgium)

Abstract

In this paper we investigate, via an example, the effects of oligopolistic competition in a two countries two goods" Ricardian" model of international trade. By contrast with results that apply to the competitive free trade equilibrium, at the oligopoly equilibrium industries with different technologies can profitably survive. Moreover we show that, in an oligopolistic setting, the pattern of trade cannot be inferred neither by pre-trade prices, nor by the comparative advantage principle.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 1992051.

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Date of creation: 01 Aug 1992
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Handle: RePEc:cor:louvco:1992051

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Cited by:
  1. Dirk Willenbockel, 2005. "The Price Normalisation Problem in General Equilibriun Models with Oligopoly Power: An Attempt at Perspective," GE, Growth, Math methods 0505002, EconWPA.
  2. Kenji Fujiwara & Tsuyoshi Shinozaki & Akihiko Yanase, 2011. "Dynamic Interactions in Trade Policy in a Differential Game Model of Tariff Protection," Review of Development Economics, Wiley Blackwell, vol. 15(4), pages 689-698, November.
  3. Kenji Fujiwara & Tsuyoshi Shinozaki, 2010. "The Closed-Loop Effects Of Market Integration In A Dynamic Duopoly," Australian Economic Papers, Wiley Blackwell, vol. 49(1), pages 1-12, 03.

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