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Globalisation and market structure

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  • J. Peter Neary

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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  • J. Peter Neary, 2002. "Globalisation and market structure," Working Papers 200220, School of Economics, University College Dublin.
  • Handle: RePEc:ucn:wpaper:200220
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    File URL: http://hdl.handle.net/10197/1306
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    References listed on IDEAS

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    More about this item

    Keywords

    Cross-border mergers; GOLE (General Oligopolistic Equilibrium); Market integration; Trade and wages; Trade liberalisation; Globalization; Equilibrium (Economics); Oligopolies; Competition; Imperfect;

    JEL classification:

    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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