Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/128378
Authors: 
Neary, J. Peter
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper 5671
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.
Subjects: 
“Continuum-Pollak” preferences
Continuum-quadratic preferences
GOLE (General Oligopolistic Equilibrium)
market integration
trade and income distribution
JEL: 
F10
F12
Document Type: 
Working Paper

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