Neary, J. PeterJ. PeterNeary2009-07-212009-07-212002-10200222http://hdl.handle.net/10197/1259I review previous approaches to modelling oligopoly in general equilibrium, and propose a new view which in principle overcomes their deficiencies: modelling firms as large in their own market but small in the economy as a whole. Implementing this approach requires a tractable specification of preferences. Dixit-Stiglitz preferences (which imply iso-elastic perceived demand functions) could be used, but "continuum-quadratic" preferences (which imply linear perceived demand functions) are more convenient. To illustrate their usefulness, I construct a simple closed-economy model of oligopoly in general equilibrium and derive some surprising implications for competition policy.517272 bytesapplication/pdfenCompetition policyDixit-Stiglitz preferencesGeneral equilibriumGOLE (General Oligopolistic Equilibrium)OligopolyD50L13L40Competition--Government policyEquilibrium (Economics)Oligopolies--Econometric modelsAntitrust lawWorking Paperhttps://creativecommons.org/licenses/by-nc-sa/1.0/