"Advances in market theory and international trade".Presentation by M. Parenti (CORE, Université Сatholique de Louvain) «International trade: David and Goliath».
On September 12, 2012 had continued a series of international research seminars "Advances in market theory and international trade" with a report of M. Parenti (CORE, Université Сatholique de Louvain) «International trade: David and Goliath».
 M.Parenti |
On September 12, 2012, Tuesday, 12:00-14:00.
Public Research Seminar.
M. Parenti (CORE, Université Сatholique de Louvain) «International trade: David and Goliath»
This paper studies the impact of trade liberalization when monopolistic and oligopolistic firms coexist in the same market. The model is characterized by a group of multi-product firms which behave strategically and take into account their impact on the equilibrium price index, and a monopolistically competitive fringe. This difference in behavior leads to firm selection: market integration and trade liberalization lead to the disappearance of monopolistically competitive firms. In the presence of big players, firm selection increases firm concentration: the market structure becomes more oligopolistic and the average price in the industry may rise. The predictions of this model on welfare constrast sharply with the New Trade Theory; in this sense, this paper contributes to showing the need of putting back strategic interactions into trade theory.
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M. Parenti. «International trade: David and Goliath»
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The seminar was held at: Room 205, 10th Line VO.
Web-page of international research seminars "Advances in market theory and international trade"...