Oligopolistic Competition and Economic Geography*

Zhou, Haiwen

doi:10.1111/j.1467-9787.2007.00536.x

Cited by 15 publications

(18 citation statements)

References 24 publications

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“…To our knowledge only a few papers have ventured on the path of introducing oligopoly in a model of economic geography and none focuses on either the geographic extent of the oligopolistic interaction or on collusion and antitrust policy. The two papers that come closer to ours are Combes (1997) and Zhou (2007) who, using two versions of oligopoly different from ours, show that some of the results of monopolistic competition models of economic geography are confirmed in oligopoly; namely, that agglomeration occurs at low trade costs. We too, in passing, find this result (section 3.4).…”

Section: Review Of the Literaturementioning

confidence: 99%

“…Combes (1997) continues his analysis by studying the consequences of initial cost advantages and size asymmetries. Zhou (2007) continues his paper by studying the effect of oligopoly on the composition of international trade and on technology adoption. Two other papers use oligopoly in an economic geography context, Ludema and Wooton (2000) and Dewit et al (2003), but they focus on tax competition and on regulations in the labor market, respectively.…”

Section: Review Of the Literaturementioning

confidence: 99%

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National oligopolies and economic geography

2010

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We replace monopolistic competition with national oligopolies in a model of "new economic geography". There are many possible bifurcation diagrams but, unlike in monopolistic competition, the symmetric equilibrium is always stable for low trade costs. The antitrust policy, though identical in both countries, affects the geographical distribution of firms. In turn, migration attenuates the effectiveness of the antitrust policy in eliminating collusive behavior. For high trade costs a toughening of the antitrust policy is likely to result in more agglomeration and may reduce world welfare. The antitrust policy is more likely to be welfare improving when market integration progresses.

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Section: Review Of the Literaturementioning

confidence: 99%

Section: Review Of the Literaturementioning

confidence: 99%

National oligopolies and economic geography

2010

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“…Since a consumer's elasticity of demand for a manufactured good is the same as that for a firm producing the composite input, similar to Zhou [2007b], the optimal output choice by a domestic firm producing a manufactured good leads to…”

Section: Equilibrium Conditions With International Tradementioning

confidence: 99%

Linkage Effects, Oligopolistic Competition, and Core-periphery

Zhou

2012

Eastern Econ J

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The impact of international trade is studied in a general equilibrium model in which firms engage in oligopolistic competition and linkage effects are present. Results are derived analytically. If countries have the same technologies and the same labor endowment, coreperiphery pattern arises only if the transportation costs are sufficiently low. The impact of a change of the level of the transportation costs on the welfare of developed countries is sensitive to the level of linkage effects. When the level of linkage effects is sufficiently high, a decrease of the level of the transportation costs will never decrease the welfare of developed countries.

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“…Compared with Zhou (2007), this model is more general. In this model, a country's comparative advantage is affected by its endowment of land.…”

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confidence: 96%