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Patterns of Trade and Oligopoly Equilibria: An Example

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  • Cordella, Tito

Abstract

This paper investigates, via an example, the effects of oligopolistic competition in a two-country two-good "Ricardian" model of international trade. By contrast, with results that apply to the competitive free-trade equilibrium, at the oligopoly equilibrium industries with different technologies can profitably survive. Moreover, it is shown that, in an oligopolistic setting, the pattern of trade cannot be inferred either by pre-trade prices or by the comparative advantage principle. Copyright 1998 by Blackwell Publishing Ltd.

Suggested Citation

  • Cordella, Tito, 1998. "Patterns of Trade and Oligopoly Equilibria: An Example," Review of International Economics, Wiley Blackwell, vol. 6(4), pages 554-563, November.
    • Handle: RePEc:bla:reviec:v:6:y:1998:i:4:p:554-63
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    Cited by:

    1. Dirk Willenbockel, 2005. "The Price Normalisation Problem in General Equilibriun Models with Oligopoly Power: An Attempt at Perspective," GE, Growth, Math methods 0505002, University Library of Munich, Germany.
    2. Kenji Fujiwara & Tsuyoshi Shinozaki & Akihiko Yanase, 2011. "Dynamic Interactions in Trade Policy in a Differential Game Model of Tariff Protection," Review of Development Economics, Wiley Blackwell, vol. 15(4), pages 689-698, November.
    3. WILLENBOCKEL Dirk, 2010. "The Numeraire Problem in General Equilibrium Models with Market Power: Much Ado About Nothing?," EcoMod2003 330700152, EcoMod.
    4. Ondřej Sankot, 2015. "Comparative Advantages of Visegrad Four Countries and Germany - A Comparison of Sectors According to the Workforce Qualification and Technology-Intensity [Komparativní výhody zemí V4 a Německa - po," Současná Evropa, Prague University of Economics and Business, vol. 2015(2), pages 125-144.
    5. Murray C. Kemp, 2010. "The Gains from Trade in a Cournot–Nash Trading Equilibrium," Review of International Economics, Wiley Blackwell, vol. 18(5), pages 832-834, November.
    6. Kenji Fujiwara & Tsuyoshi Shinozaki, 2010. "The Closed‐Loop Effects Of Market Integration In A Dynamic Duopoly," Australian Economic Papers, Wiley Blackwell, vol. 49(1), pages 1-12, March.

    More about this item

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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