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International trade in general oligopolistic equilibrium

Abstract:
This paper presents a new model of oligopoly in general equilibrium and explores its implications for positive and normative aspects of international trade. Assuming "continuum-Pollak" preferences, the model allows for consistent aggregation over a continuum of sectors, in each of which a small number of home and foreign firms engage in Cournot competition. I show how competitive advantage interacts with comparative advantage to determine resource allocation, and, specializing to continuum-quadratic preferences, I explore the model's implications for the gains from trade, for the distribution of income between wages and profits, and for production and trade patterns in a two-country world.
Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1111/roie.12233

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Institution:
University of Oxford
Division:
SSD
Department:
Economics
Role:
Author


Publisher:
Wiley
Journal:
Review of International Economics More from this journal
Volume:
24
Issue:
3
Pages:
669–698
Publication date:
2016-06-01
Acceptance date:
2016-05-10
DOI:
ISSN:
1467-9396


Keywords:
Pubs id:
pubs:620170
UUID:
uuid:c29cf9cc-4ee8-46a5-afde-c0510f9f182b
Local pid:
pubs:620170
Source identifiers:
620170
Deposit date:
2016-05-11

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