Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/72322
Authors: 
Neary, James Peter
Tharakan, Joe
Year of Publication: 
2005
Series/Report no.: 
Working Paper Series, UCD Centre for Economic Research 05/26
Abstract: 
This paper endogenises the extent of intra-sectoral competition in a multi-sectoral model of oligopoly in general equilibrium. Firms choose capacity followed by prices. If the bene…ts of capacity investment in a given sector are below a threshold level, the sector exhibits Bertrand behaviour, otherwise it exhibits Cournot behaviour. By endogenising the threshold parameter in general equilibrium, we show how exogenous shocks alter the mix of sectors between “more”and “less”competitive, or Bertrand and Cournot. The model also has implications for the e¤ects of trade liberalisation and technological change on the relative wages of skilled and unskilled workers.
Subjects: 
Bertrand and Cournot competition
GOLE (General Oligopolistic Equilibrium)
Kreps-Scheinkman
market integration
JEL: 
F10
F12
L13
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
361.62 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.