Journal article
Free Trade versus Autarky under Asymmetric Cournot Oligopoly
Review of international economics, Vol.25(1), pp.98-107
02/2017
DOI: 10.1111/roie.12257
Abstract
The paper compares free trade with autarky in an asymmetric multi-country world under Cournot competition with constant returns to scale and linear demand. We derive respective conditions under which free trade will hurt a country's consumers, benefit its firms, induce it to export, increase its output and raise its welfare. We show that these conditions are linked in a clear order, with one implying the next. We further demonstrate that free trade can reduce world total output and total consumer surplus as well as world welfare. Along the way, we correct several oversights in the literature.
Details
- Title: Subtitle
- Free Trade versus Autarky under Asymmetric Cournot Oligopoly
- Creators
- Rabah Amir - University of IowaJim Y. Jin - University of St AndrewsMichael Troge - ESCP Business School
- Resource Type
- Journal article
- Publication Details
- Review of international economics, Vol.25(1), pp.98-107
- Publisher
- Wiley
- DOI
- 10.1111/roie.12257
- ISSN
- 0965-7576
- eISSN
- 1467-9396
- Number of pages
- 10
- Language
- English
- Date published
- 02/2017
- Academic Unit
- Economics
- Record Identifier
- 9984380386902771
Metrics
2 Record Views