A Two-Sector General Equilibrium Model with One Imperfectly Competitive Firm

7 Pages Posted: 20 Dec 2012 Last revised: 21 Jan 2013

Date Written: January 20, 2013

Abstract

In this paper we show that in two sector general equilibrium models with one monopolistic firm a unique equilibrium exists for our assumed economic environment. Then we study how the equilibrium responds to a change in input coefficients and endowment of labor. In a final section we provide an example of a two-sector economy where the utility function of the consumer is quasi-linear and show that under these circumstances an equilibrium can be easily derived.

Keywords: two-sector, imperfect competion, monopoly, equilibrium

JEL Classification: D42, D58

Suggested Citation

Lahiri, Somdeb, A Two-Sector General Equilibrium Model with One Imperfectly Competitive Firm (January 20, 2013). Available at SSRN: https://ssrn.com/abstract=2191430 or http://dx.doi.org/10.2139/ssrn.2191430

Somdeb Lahiri (Contact Author)

Lok Jagruti (LJ) University ( email )

S.G. Road & Kataria Motors
Sarkhej Circle
Ahmedabad, IN Gujarat 382210
India

HOME PAGE: http://https://sites.google.com/view/somdeblahiri/home

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