Oligopoly in International Trade: Rise, Fall and Resurgence / Keith Head, Barbara J. Spencer.

Format:

Book

Author/Creator:

Head, Keith.

Contributor:

National Bureau of Economic Research.

Spencer, Barbara J.

Series:

Working Paper Series (National Bureau of Economic Research) no. w23720.

NBER working paper series no. w23720

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Oligopoly in International Trade

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2017.

Summary:

Large firms played a central role in the "new trade" models that became a major focus of trade economists in the early 1980s. Subsequent literature for the most part kept imperfect competition but jettisoned oligopoly. Instead, as the heterogeneous firms literature burgeoned in the 2000s, monopolistic competition quickly became established as the workhorse model. The use of oligopoly in trade models has been criticized for reasons that we argue are unpersuasive. Renewed incorporation of oligopolistic firms in international trade is warranted. Quantitative investigations of welfare effects of trade policy should again address the impact of such policies on the allocation of profits across countries.

Notes:

Print version record

August 2017.