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Consumer and Trade Prices in General Equilibrium with Imperfect Competition

Author

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  • Gareth D. Myles

    (Department of Economics, University of Exeter, U.K.)

Abstract

A two-sector model of imperfect competition with intermediate goods is analyzed. An objective demand function is constructed and equilibrium studied through simulation. The results indicate that trade prices may exceed consumer prices and that collusion between firms may benefit both firms and consumers and result in intermediate goods trading at less than marginal cost.

Suggested Citation

  • Gareth D. Myles, 2002. "Consumer and Trade Prices in General Equilibrium with Imperfect Competition," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 1(1), pages 45-52, April.
    • Handle: RePEc:ijb:journl:v:1:y:2002:i:1:p:45-52
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    References listed on IDEAS

    as
    1. Takashi Negishi, 1961. "Monopolistic Competition and General Equilibrium," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 28(3), pages 196-201.
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    More about this item

    Keywords

    prices; equilibrium; oligopoly;
    All these keywords.

    JEL classification:

    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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