The Surprising Arithmetic of Imperfectly Competitive Trade Theory


Publication: Journal of Economic Education

Volume: Volume 23, No. 4

Issue: Fall 1992

Pages: pp. 333-339

Author(s): Steven Beckman

Address (Principal Author):

Title: The Surprising Arithmetic of Imperfectly Competitive Trade Theory

Abstract: Should imported oil be subjected to a tariff? Should governments subsidize a home firm in competition with a foreign Cournot duopolist? Recent contributions to these issues are summarized, and simple numerical examples illustrate that even the direction of appropriate policy is sensitive to small changes in the curvature of demand.



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