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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 inCournot competition. I show how competitive advantage interacts with comparative advantage to determine resource allocation, and, specializing to cont...

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Publication status:
Published

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Publisher:
University of Oxford
Series:
Department of Economics Discussion Paper Series
Publication date:
2015-12-02
Paper number:
769

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