Developments of International Trade Theory pp 167-183 | Cite as
Oligopoly
Abstract
Traditionally, the perfect competition has been assumed in the theory of international trade. The theory of perfect competition presupposes that the market is so large that no single suppliers, by itself, can affect the market price. In other words, the number of suppliers is very large and they take or accept the market price to decide the plan of their supplies. Though the world markets are generally large enough to permit this assumption, however, we have to admit that some markets are dominated by a few large firms which can manipulate the market price by themselves. The behavior of such price making firms is considered in the theory of oligopoly.
Keywords
Marginal Cost Demand Function Domestic Market Foreign Firm Equilibrium PricePreview
Unable to display preview. Download preview PDF.
References
- Cournot, A. A., 1897, Researches into the Mathematical Principles of the Theory of Wealth, N. T. Bacon, tr., London: Mcmillan.Google Scholar
- Shubik, M., 1987, Cournot, Antoine Augustin, J. Eatwell, M. Milgate and P. Newman, eds., The New Palgrave, 1, London: Macmillan, 708–712.Google Scholar
- Bhagwati, J. N., 1965, On the Equivalence of Triffs and Quotas, R. E. Baldwin et al., eds., Trade, Growth and the Balance of Payments, Chicago: Rand Nally.Google Scholar
- Bhagwati, J. N., 1969, Trade, Tariffs and Growth, London: Weidenfeld and Nicolson.Google Scholar
- Fellner, W, 1965, Competition Among the Few, New York: Kelley.Google Scholar
- Itoh, M. and Y. Ono, 1982, Tariffs, Quotas, and Market Structure, Quarterly Journal of Economics, 295–305.Google Scholar
- Kreuger, A., 1974, The Political Economy of Rent-seeking Society, American Economic Review, 64, 291–303.Google Scholar
- Ono, Y, 1978, The Equilibrium of Duopoly in a Market of Homogeneous Goods, Economica, New Series XLV, 287–295.Google Scholar
- Shibata, H., 1968, A Note on the Equivalence of Triffs and Quotas, American Economic Review, LVIII, 137–142.Google Scholar
- Stackelberg, H. V., 1934, Marktform und Gleichgewicht, Wien and Berlin: Springer.Google Scholar