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Trade in bilateral oligopoly with endogenous market formation

Dickson, Alex and Hartley, Roger (2011) Trade in bilateral oligopoly with endogenous market formation. Working paper. Strathclyde Economics Working Paper Series. (Unpublished)

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    Abstract

    We study a strategic market game in which traders are endowed 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.

    Item type: Monograph (Working paper)
    ID code: 34357
    Keywords: bilateral oligopoly , endogenous markets, autarky, Economic Theory
    Subjects: Social Sciences > Economic Theory
    Department: Strathclyde Business School > Economics
    Related URLs:
    Depositing user: Pure Administrator
    Date Deposited: 12 Nov 2011 10:09
    Last modified: 04 Oct 2012 17:43
    URI: http://strathprints.strath.ac.uk/id/eprint/34357

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