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: 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
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