6533b86cfe1ef96bd12c8b29
RESEARCH PRODUCT
Product-market integration with endogenous firm heterogeneity
Ivan Ledezmasubject
Economics and EconometricsProduct marketGeneral equilibrium theory05 social sciences[SHS.ECO]Humanities and Social Sciences/Economics and FinanceEconomies of scaleMicroeconomicsOligopolyGlobalizationMarket structure8. Economic growth0502 economics and businessEconomicsSpitemedicine050207 economicsFree entrymedicine.symptom050205 econometricsdescription
Abstract This paper proposes a general equilibrium oligopoly model in which firm heterogeneity is endogenously reproduced through technology adoption decisions. The model can explain persistent oligopolistic market structures and prices in spite of free entry and market enlargement. Moreover, strong selection might deteriorate average cost efficiency due to strategic interactions. Integrating identical countries can be welfare-improving. But distributional issues and tensions between welfare and scale economies may arise. The theory can be motivated by recent evidence on oligopolistic market structures resisting globalization forces.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2021-02-04 |