A note on the effects of market power distribution in Cordella and Gabszewicz's Ricardian model
We argue that it is the distribution of market power among agents, rather than the use of market power itself, that may force Ricardian economies into autarky. By applying Baldwin (1948) monopoly equilibrium concepts to the general equilibrium with imperfect competition model analyzed by Cordella and Gabszewicz (1997), we show that the monopoly equilibrium outcome Pareto dominates the oligopoly one. As a consequence, economic efficiency is higher when market power is concentrated in one agent than when it is evenly distributed among few agents.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rabah Amir & Val E. Lambson, 2000.
"On the Effects of Entry in Cournot Markets,"
Review of Economic Studies,
Oxford University Press, vol. 67(2), pages 235-254.
- Rabah Amir & Val E. Lambson, 1998. "On the Effects of Entry in Cournot Markets," CIE Discussion Papers 1998-06, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
- AMIR, Rabah & LAMBSON, Val, 1999. "On the effects of entry in Cournot markets," CORE Discussion Papers 1999059, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Rabah Amir, 2000. "On the Effects of Entry in Cournot Markets," Econometric Society World Congress 2000 Contributed Papers 1475, Econometric Society.
- Cordella, Tito & J. Gabszewicz, Jean, 1997. "Comparative advantage under oligopoly," Journal of International Economics, Elsevier, vol. 43(3-4), pages 333-346, November.
- Cordella, T. & Gabszewicz, J. J., "undated". "Comparative advantage under oligopoly," CORE Discussion Papers RP 1286, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- CORDELLA, Tito & GABSZEWICZ, Jean, 1993. "Comparative Advantage under Oligopoly," CORE Discussion Papers 1993007, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Bottazzi, Jean-Marc & De Meyer, Bernard, 2003. "A market game for assets and taxed investors," Journal of Mathematical Economics, Elsevier, vol. 39(5-6), pages 657-675, July.
- Bernard De Meyer & Jean-Marc Bottazzi, 2003. "A market game for assets and taxed investors," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00259739, HAL.
- Jones, Ronald W. & Peter Neary, J., 1984. "The positive theory of international trade," Handbook of International Economics,in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 1, pages 1-62 Elsevier.
- Richard Sweeney, 1974. "Monopoly, the law of comparative advantage, and commodity price agreements: A simple general equilibrium analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 110(2), pages 259-287, June.
- R. Melvin, James & Warne, Robert D., 1973. "Monopoly and the theory of international trade," Journal of International Economics, Elsevier, vol. 3(2), pages 117-134, May.
- Rieber, William J, 1982. "Discriminating Monopoly and International Trade," Economic Journal, Royal Economic Society, vol. 92(366), pages 365-376, June. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:eee:reecon:v:67:y:2013:i:2:p:111-116. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.