We argue that it is the distribution of market power among agents, rather than the use ofbmarket power itself, that may force Ricardian economies into autarky. By applyingbBaldwin (1948) monopoly equilibrium concepts to the general equilibrium with imperfect competition model analyzed by Cordella and Gabszewicz (1997), we show that the monopoly equilibrium outcome Pareto dominates the oligopoly one. As a consequence, economic efficiency is higher when market power is concentrated in one agent than when it is evenly distributed among few agents.
Emanuele Bacchiega (2013). A note on the effects of market power distribution in Cordella and Gabszewicz’s Ricardian model. RESEARCH IN ECONOMICS, 67, 111-116 [10.1016/j.rie.2013.02.001].
A note on the effects of market power distribution in Cordella and Gabszewicz’s Ricardian model
BACCHIEGA, EMANUELE
2013
Abstract
We argue that it is the distribution of market power among agents, rather than the use ofbmarket power itself, that may force Ricardian economies into autarky. By applyingbBaldwin (1948) monopoly equilibrium concepts to the general equilibrium with imperfect competition model analyzed by Cordella and Gabszewicz (1997), we show that the monopoly equilibrium outcome Pareto dominates the oligopoly one. As a consequence, economic efficiency is higher when market power is concentrated in one agent than when it is evenly distributed among few agents.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
