International trade with endogenous mode of competition in general equilibrium

• 成果类型: Article
• 署名作者: Neary, J. Peter; Tharakan, Joe
• 署名单位: University of Oxford; University of Liege
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2011.08.004
• 发表日期: 2012
• 页码: 118-132
• 关键词: Bertrand and Cournot competition; GOLE (General Oligopolistic Equilibrium); Kreps-Scheinkman; market integration; TRADE; Technology and wages

摘要

This paper endogenizes the extent of intra-sectoral competition in a multi-sectoral general-equilibrium model of oligopoly and trade. Firms choose capacity followed by prices. If the benefits of capacity investment in a given sector are below a threshold level, the sector exhibits Bertrand behavior, otherwise it exhibits Cournot behavior. By endogenizing the threshold parameter in general equilibrium, we show how exogenous shocks such as globalization and technological change alter the mix of sectors between more and less competitive, or Bertrand and Cournot, and affect the relative wages of skilled and unskilled workers, even in a North-North model with identical countries. (C) 2011 Elsevier B.V. All rights reserved.