IDEAS home Printed from https://ideas.repec.org/a/ier/iecrev/v36y1995i3p609-24.html
   My bibliography  Save this article

The Role of Free Entry in an Oligopolistic Heckscher-Ohlin Model

Author

Listed:
  • Lahiri, Sajal
  • Ono, Yoshiyasu

Abstract

Retaining the basic properties of the Heckscher-Ohlin trade model, namely, free entry and exit, fully integrated international commodity markets, and the same number of sectors with that of factors, the authors develop a two-country model with Cournot oligopoly. In this economy, factor price equalization and the standard Heckscher-Ohlin theorem on comparative advantage hold. Between two countries which are identical except for size, however, autarkic prices are different even though the level of trade is zero under the free-trade regime. Nevertheless, free trade reduces the oligopoly price and increases welfare. Copyright 1995 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Suggested Citation

  • Lahiri, Sajal & Ono, Yoshiyasu, 1995. "The Role of Free Entry in an Oligopolistic Heckscher-Ohlin Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(3), pages 609-624, August.
    • Handle: RePEc:ier:iecrev:v:36:y:1995:i:3:p:609-24
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0020-6598%28199508%2936%3A3%3C609%3ATROFEI%3E2.0.CO%3B2-K&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ier:iecrev:v:36:y:1995:i:3:p:609-24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley-Blackwell Digital Licensing or the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/deupaus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.