Oligopoly and Trade
42 Pages Posted: 18 Jan 2011
Date Written: December 2010
Abstract
In this chapter we present a selective analytic survey of some of the main results of trade under oligopoly. We concentrate on three topics: oligopoly as an independent determinant of trade, as illustrated by the reciprocal-markets model of Brander (1981); oligopoly as an independent rationale for government intervention, as illustrated by strategic trade and industrial policy in the third-market model of Spencer and Brander (1983); and the challenges and potential of embedding trade under oligopoly in general equilibrium as illustrated by the GOLE model of Neary (2002).
Keywords: GOLE (General Oligopolistic Equilibrium), reciprocal dumping, strategic trade policy
JEL Classification: F12, L13
Suggested Citation: Suggested Citation
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