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Oligopolistic Competition and Economic Geography

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  • Zhou, Haiwen

Abstract

This paper studies a general equilibrium model of economic geography in which firms engage in oligopolistic competition. This framework is conducive to analytic results. With increasing returns, oligopolistic competition leads to inter-industry trade between regions rather than intra-industry trade. The choice of appropriate technology is a channel of concentration of industries.

Suggested Citation

  • Zhou, Haiwen, 2018. "Oligopolistic Competition and Economic Geography," MPRA Paper 88919, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:88919
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    References listed on IDEAS

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    3. Haiwen Zhou, 2007. "Increasing Returns, the Choice of Technology, and the Gains from Trade," Southern Economic Journal, John Wiley & Sons, vol. 74(2), pages 581-600, October.
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    5. Gianmarco Ottaviano & Takatoshi Tabuchi & Jacques-François Thisse, 2021. "Agglomeration And Trade Revisited," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 3, pages 59-85, World Scientific Publishing Co. Pte. Ltd..
    6. Haiwen Zhou, 2004. "The division of labor and the extent of the market," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 24(1), pages 195-209, July.
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    19. J.Peter Neary, 2001. "Of Hype and Hyperbolas: Introducing the New Economic Geography," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 536-561, June.
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    21. Dornbusch, Rudiger & Fischer, Stanley & Samuelson, Paul A, 1977. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," American Economic Review, American Economic Association, vol. 67(5), pages 823-839, December.
    22. N. Gregory Mankiw & Michael D. Whinston, 1986. "Free Entry and Social Inefficiency," RAND Journal of Economics, The RAND Corporation, vol. 17(1), pages 48-58, Spring.
    23. Haiwen Zhou, 2007. "Increasing Returns, the Choice of Technology, and the Gains from Trade," Southern Economic Journal, John Wiley & Sons, vol. 74(2), pages 581-600, October.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Combes, Pierre-Philippe & Lafourcade, Miren, 2011. "Competition, market access and economic geography: Structural estimation and predictions for France," Regional Science and Urban Economics, Elsevier, vol. 41(6), pages 508-524.
    2. Haiwen Zhou, 2010. "A Ricardian model of international trade with oligopolistic competition," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 19(4), pages 499-515.
    3. Haiwen Zhou, 2013. "Linkage Effects, Oligopolistic Competition, and Core-periphery," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 39(1), pages 93-110.
    4. Haiwen Zhou, 2022. "The Choice of Technology and Economic Geography," International Economic Journal, Taylor & Francis Journals, vol. 36(1), pages 1-18, January.
    5. Haiwen Zhou, 2010. "Oligopolistic Competition, Firm Heterogeneity, and the Impact of International Trade," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 36(1), pages 107-119.
    6. Haiwen Zhou, 2007. "Increasing Returns, the Choice of Technology, and the Gains from Trade," Southern Economic Journal, John Wiley & Sons, vol. 74(2), pages 581-600, October.
    7. Haiwen Zhou, 2011. "Factor Returns and Circular Causality," Southern Economic Journal, John Wiley & Sons, vol. 77(3), pages 795-805, January.
    8. Barbara Annicchiarico & Federica Orioli & Federico Trionfetti, 2012. "National oligopolies and economic geography," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(1), pages 71-99, February.
    9. Christopher Colburn & Haiwen Zhou, 2010. "Land Endowment, Intersectoral Labor Mobility, and Economic Geography," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 38(4), pages 429-441, December.
    10. Haiwen Zhou, 2009. "Population Growth And Industrialization," Economic Inquiry, Western Economic Association International, vol. 47(2), pages 249-265, April.
    11. Haiwen Zhou, 2007. "Factor Endowment, the Choice of Technology, and the Volume of Trade," International Economic Journal, Taylor & Francis Journals, vol. 21(4), pages 593-611.
    12. Haiwen Zhou, 2010. "Globalisation and the Size Distribution of Firms," The Economic Record, The Economic Society of Australia, vol. 86(272), pages 84-94, March.
    13. Thomas Gries & Wim Naudé & Marianne Matthee, 2009. "The Optimal Distance To Port For Exporting Firms," Journal of Regional Science, Wiley Blackwell, vol. 49(3), pages 513-528, August.

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    More about this item

    Keywords

    Oligopolistic competition; economic geography; increasing returns to scale; choice of technology; inter-industry trade;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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