Abstract
with both a good and money and can choose whether to buy or sell
the good. We derive conditions under which a non-autarkic equilibrium exists and when the only equilibrium is autarky. Autarky is ‘nice’
(robust to small perturbations in the game) when it is the only equilibrium, and ‘very nice’ (robust to large perturbations) when no gains
from trade exist. We characterize economies where autarky is nice but
not very nice; that is, when gains from trade exist and yet no trade
takes place.
| Original language | English |
|---|---|
| Number of pages | 19 |
| Publication status | Unpublished - 2011 |
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Keywords
- bilateral oligopoly
- endogenous markets
- autarky
Cite this
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Trade in bilateral oligopoly with endogenous market formation. / Dickson, Alex; Hartley, Roger.
2011.Research output: Working paper
TY - UNPB
T1 - Trade in bilateral oligopoly with endogenous market formation
AU - Dickson, Alex
AU - Hartley, Roger
PY - 2011
Y1 - 2011
N2 - We study a strategic market game in which traders are endowedwith both a good and money and can choose whether to buy or sellthe good. We derive conditions under which a non-autarkic equilibrium exists and when the only equilibrium is autarky. Autarky is ‘nice’(robust to small perturbations in the game) when it is the only equilibrium, and ‘very nice’ (robust to large perturbations) when no gainsfrom trade exist. We characterize economies where autarky is nice butnot very nice; that is, when gains from trade exist and yet no tradetakes place.
AB - We study a strategic market game in which traders are endowedwith both a good and money and can choose whether to buy or sellthe good. We derive conditions under which a non-autarkic equilibrium exists and when the only equilibrium is autarky. Autarky is ‘nice’(robust to small perturbations in the game) when it is the only equilibrium, and ‘very nice’ (robust to large perturbations) when no gainsfrom trade exist. We characterize economies where autarky is nice butnot very nice; that is, when gains from trade exist and yet no tradetakes place.
KW - bilateral oligopoly
KW - endogenous markets
KW - autarky
UR - http://www.eea-esem.com/files/papers/EEA/2010/638/dickson_hartley_eea10.pdf
UR - http://www.strath.ac.uk/media/departments/economics/researchdiscussionpapers/2011/11-04_Final.pdf
UR - http://personal.strath.ac.uk/alex.dickson/workshop_docs/dickson_slides.pdf
M3 - Working paper
BT - Trade in bilateral oligopoly with endogenous market formation
ER -