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10 juillet 2011
- handle: 10670/1.pbfchn
- halshs: halshs-00607641
info:eu-repo/semantics/OpenAccess
Mots-clés
Spatial Oligopoly Antitrust Policy WelfareSujets proches
Trade Commercial trade Foreign trade Economic concentration Partial monopolies Monopolies, Partial World economics Geography, Economic Trade TradeCiter ce document
Barbara Annicchiarico et al., « National Oligopolies and Economic Geography », HAL-SHS : économie et finance, ID : 10670/1.pbfchn
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Résumé
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.