CORDIS Project
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This project aims to enhance the understanding of international trade by integrating oligopoly theory with existing trade models. It focuses on the role of large firms in trade dynamics and explores their strategic interactions and product diversity.
The study of international trade has made huge advances in recent decades by moving away from a perfectly competitive view of the world, and allowing for increasing returns and product diversity.
However, in this effort it has borrowed very selectively from the theory of industrial organization.
Both the “new trade theory revolution” of Krugman and others, and the more recent development of models with firm heterogeneity by Melitz and others, have entrenched the position of monopolistic competit…
THE CHANCELLOR, MASTERS AND SCHOLARS OF THE UNIVERSITY OF OXFORD
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