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Globalisation and Market Structure

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  • J Peter Neary

    (University College Dublin)

Abstract

This paper reviews some puzzling economic aspects of globalisation and argues that they cannot be satisfactorily addressed in perfectly or monopolistically competitive models. Drawing on recent work, a model of oligopoly in general equilibrium is sketched. The model ensures theoretical consistency by assuming that firms are large in their own markets but small in the economy as a whole, and ensures tractability by assuming quadratic preferences defined over a continuum of goods. Applications considered include the effects of trade liberalisation on industrial structure, on cross-border merger waves, and on the distribution of income between skilled and unskilled workers.

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File URL: http://www.ucd.ie/economics/research/papers/2002/WP02.20.pdf
File Function: First version, 2002
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Bibliographic Info

Paper provided by School Of Economics, University College Dublin in its series Working Papers with number 200220.

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Length: 41 pages
Date of creation: 20 Aug 2002
Date of revision:
Handle: RePEc:ucn:wpaper:200220

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Postal: UCD, Belfield, Dublin 4
Phone: +353-1-7067777
Fax: +353-1-283 0068
Web page: http://www.ucd.ie/economics
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Related research

Keywords: Cross-border mergers; GOLE (General Oligopolistic Equilibrium); market integration; trade and wages; trade liberalisation;

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