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Title: Oligopoly and Trade

Author(s): Dermot Leahy and J Peter Neary

Publication Date: December 2010

Keyword(s): GOLE (General Oligopolistic Equilibrium), reciprocal dumping and strategic trade policy

Programme Area(s): International Trade and Regional Economics

Abstract: In this chapter we present a selective analytic survey of some of the main results of trade under oligopoly. We concentrate on three topics: oligopoly as an independent determinant of trade, as illustrated by the reciprocal-markets model of Brander (1981); oligopoly as an independent rationale for government intervention, as illustrated by strategic trade and industrial policy in the third-market model of Spencer and Brander (1983); and the challenges and potential of embedding trade under oligopoly in general equilibrium as illustrated by the GOLE model of Neary (2002).

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Bibliographic Reference

Leahy, D and Neary, J. 2010. 'Oligopoly and Trade'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=8172