Endogenous mode of competition in general equilibrium
|Title:||Endogenous mode of competition in general equilibrium||Authors:||Neary, J. Peter
|Permanent link:||http://hdl.handle.net/10197/1301||Date:||12-Dec-2005||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 benefits 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 effects of trade liberalisation and technological change on the relative wages of skilled and unskilled workers.||Funding Details:||Irish Research Council for the Humanities and Social Sciences ; European Commission||Type of material:||Working Paper||Publisher:||University College Dublin. School of Economics||Keywords:||Bertrand and Cournot competition;GOLE (General Oligopolistic Equilibrium);Kreps- Scheinkman;Market integration||Subject LCSH:||International trade
|Language:||en||Status of Item:||Not peer reviewed|
|Appears in Collections:||Economics Working Papers & Policy Papers|
Show full item record
Page view(s) 20137
This item is available under the Attribution-NonCommercial-NoDerivs 3.0 Ireland. No item may be reproduced for commercial purposes. For other possible restrictions on use please refer to the publisher's URL where this is made available, or to notes contained in the item itself. Other terms may apply.