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Multiproduct Oligopoly and Trade Between Asymmetric Countries

Author

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  • Yi-Ling Cheng

    (Department of Economics, Tunghai University and Academia Sinica)

  • Akihiko Takahashi

    (Faculty of Economics, The University of Tokyo)

Abstract

This paper develops a general equilibrium model of oligopolistic multiproduct Â…firms conducting trade between asymmetric countries, in which heterogeneous Â…firms entrants choose their product ranges and outputs. We show that there are fewer exporters in the larger country, and each produces a wider range of products but exports fewer varieties. We also show that while trade liberalization increases the total number of consumed varieties, it decreases the total number of Â…rms and may reduce the product range of each Â…firm.

Suggested Citation

  • Yi-Ling Cheng & Akihiko Takahashi, 2016. "Multiproduct Oligopoly and Trade Between Asymmetric Countries," CIRJE F-Series CIRJE-F-1023, CIRJE, Faculty of Economics, University of Tokyo.
    • Handle: RePEc:tky:fseres:2016cf1023
    as

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    References listed on IDEAS

    as
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    6. Gianmarco Ottaviano & Takatoshi Tabuchi & Jacques-François Thisse, 2021. "Agglomeration And Trade Revisited," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 3, pages 59-85, World Scientific Publishing Co. Pte. Ltd..
    7. Timothy Dunne & J. Bradford Jensen & Mark J. Roberts, 2009. "Introduction to "Producer Dynamics: New Evidence from Micro Data"," NBER Chapters, in: Producer Dynamics: New Evidence from Micro Data, pages 1-12, National Bureau of Economic Research, Inc.
    8. Christian Broda & David E. Weinstein, 2006. "Globalization and the Gains From Variety," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(2), pages 541-585.
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    10. Marc J. Melitz & Gianmarco I. P. Ottaviano, 2008. "Market Size, Trade, and Productivity (DOI:10.111/j.1467-937x.2007.00463.x)," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 75(3), pages 985-985.
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