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Oligopoly and Trade

  • Peter Neary
  • Dermot Leahy

In this chapter we present a selective analytic survey of some of the main results of trade under oligopoly.� We concentrate on three topics: oligopoly as an independent determinant of trade, as illustrated by the reciprocal-markets model of Brander (1981); oligopoly as an independent rationale for government intervention, as illustrated by strategic trade and industrial policy in the third-market model of Spencer and Brander (1983); and the challenges and potential of embedding trade under oligopoly in general equilibrium as illustrated by the GOLE model of Neary (2002).

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Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 517.

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Date of creation: 01 Dec 2010
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Handle: RePEc:oxf:wpaper:517
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