Endogenous mode of competition in general equilibrium

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Title: Endogenous mode of competition in general equilibrium
Authors: Neary, J. Peter
Tharakan, Joe
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
Oligopolies
Competition, Imperfect
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

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