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International Trade

  • Scott Gilbert
Chapter
  • 395 Downloads
Part of the Quantitative Perspectives on Behavioral Economics and Finance book series (QPBEF)

Abstract

Competition, and market concentration, are key themes in antitrust economics. A lack of competition, or excess of concentration, can have anti-competitive effects, lowering the amount of goods available to consumers while raising prices. In the case of mergers, a merger of pure duopoly firms into a single firm is anti-competitive, under the assumptions maintained in Chap.  4, as is a merger of monopolies in industries that produce goods which consumers regard as substitutes. But a merger of monopolies in industries producing complement goods, or vertically linked goods, can be pro-competitive, raising output and lowering price. Sometimes, an increase in market concentration benefits consumers.

Keywords

Production possibilities Efficiency Fairness Specialization Coordinated production Comparative advantage 

References

  1. Ethier, W. (1983). Modern international economics. New York, NY: W.W. Norton Co.Google Scholar
  2. Krugman, P. R., & Obstfeld, M. (2009). International economics: Theory and policy (8th ed.). Boston, MA: Pearson Addison Wesley.Google Scholar
  3. Van den Berg, H. (2012). International economics: A heterodox approach (2nd ed.) Armonk, NY: M.E. Sharpe.Google Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Scott Gilbert
    • 1
  1. 1.Southern Illinois UniversityCarbondaleUSA

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