Comparative Advantage Under Monopoly: A Note On the Role of Market Power

Bacchiega, Emanuele (2011) Comparative Advantage Under Monopoly: A Note On the Role of Market Power. Bologna: Dipartimento di Scienze economiche DSE, p. 7. DOI 10.6092/unibo/amsacta/4517. In: Quaderni - Working Paper DSE (724). ISSN 2282-6483.
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Abstract

We argue that it is the number of agents holding market power, rather than the presence of market power itself, that may force Ricardian economies into autarchy. We apply the concepts of monopoly equilibrium by Baldwin (1948) to the model of Cordella and Gabszewicz (1997) to show that, differently from the oligopoly case, trade always arises at a monopoly equilibrium whereas autarchy is never an outcome. As a consequence, monopoly Pareto-dominates oligopoly.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Bacchiega, Emanuele
Keywords
Comparative advantage, Market power, Monopoly, Oligopoly.
Subjects
ISSN
2282-6483
DOI
Deposit date
02 Feb 2016 11:39
Last modified
02 Feb 2016 11:39
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