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Markups in a two‑country monopolistic competition model of trade with heterogeneous consumers
Journal of Economic Structures. 2020. Vol. 9. P. 1-12.
The paper develops a two-country monopolistic competition model of trade featuring country-specifc consumer tastes. The accounting for heterogeneity in tastes is achieved by assuming diferent elasticities of substitution in the CES utility function for diferent country consumers. The proposed framework extends the canonical Krugman’s approach by revealing new efects regarding markups response to consumer heterogeneity and trade liberalization. Specifcally, the model predicts that, depending on the preference structure, trade liberalization may lead either to decrease or increase in the level of markups, charged by monopolistically competitive frms across destination countries.
Osharin A., Verbus V. A., / Высшая школа экономики. Series WP BRP "Economics/EC". 2016. No. WP BRP 131/EC/2016.
The paper considers a two-country trade model of monopolistic competition featuring the heterogeneity of consumer preferences both within and across countries. The incorporation of heterogeneity into a traditional monopolistic competition setting is achieved by assuming different elasticities of substitution in the CES utility function for different consumers. The proposed setup expands on the traditional model ...
Added: April 1, 2016
Osharin A., Verbus V. A., Journal of Economics 2018 Vol. 125 No. 3 P. 211-237
The paper considers a two-sector two-country trade model of monopolistic competition featuring the heterogeneity of consumer preferences and incomes within and across countries. The incorporation of heterogeneity into a monopolistic competition setting is achieved by assuming a nested Cobb–Douglas and CES utility function exhibiting both country and sector-specific consumer tastes and expenditure shares on manufacturing ...
Added: March 29, 2018
Verbus V. A., Osharin A., Экономическая политика 2019 Т. 14 № 3 С. 152-175
The paper builds a two-sector monopolistic competition model featuring multi-product firms and heterogeneous consumers endowed with a Cobb–Douglas utility nesting a generalized CES function. In contrast to the standard CES, the generalized CES function includes both the love of variety and the love for product quality, which makes it possible to distinguish consumers differing in their ...
Added: October 24, 2019
Alexander Osharin, Advances in Economics and Business 2013 Vol. 1 No. 2 P. 145-149
The paper investigates distributional effects and market structure in a one-sector model of monopolistic competition with heterogeneous consumers. By using the CES utility function depending on consumer’s personal income the paper shows how the equilibrium prices, firm size and number of firms depend upon income distribution and intensity of competition. The proposed model extends the ...
Added: November 13, 2013
Zhelobodko E. V., Kichko S., Ushchev P., Пространственная экономика 2013 № 3 С. 10-29
We study the impact of trade liberalization on the market of a differentiated good and consumers’ welfare. The economy involves two factors of production: labor and capital. We find that consumers always gain from trade liberalization. We also establish that the behavior of equilibrium price is independent of factor endowments’ structure in the countries involved ...
Added: November 18, 2013
Osharin A., Verbus V. A., / EERC. Series "Labor markets and social policy". 2015. No. 15/03E.
The present paper extends the traditional Dixit and Stiglitz set-up by introducing consumers’ workers’ heterogeneity into a general equilibrium model of monopolistic competition. The model obtains a closed-form solution for a symmetric equilibrium and shows how the market outcome depends on the joint distribution of consumers’/workers’ taste and labor productivities. In contrast to the traditional ...
Added: March 8, 2016
Ошарин А.М., Аудит и финансовый анализ 2013 № 6 С. 154-160
The paper develops a one-sector model of monopolistic competition with heterogeneous consumers, which preferences depend upon their personal income. The model is used for the analysis of the mark-ups dependence on the inequality of consumers’ income distribution and average wage. The paper shows that mark-ups can ambiguously depend upon income inequality at fixed average income, ...
Added: November 14, 2013
Kichko S., Kokovin S. G., Zhelobodko E. V., / Austrian Institute of Economic Research, Vienna Institute for International Economic Studies, Computing Centre for Economics and Social Sciences. Series FIW "FIW Working Paper". 2013. No. 124.
We develop a two-factor, two-sector trade model of monopolistic competition with variable elasticity of substitution. Firm profit and firm size may increase or decrease with market integration depending on the degree of asymmetry between countries. The country in which capital is relatively abundant is a net exporter of the manufactured good, while both firms' size ...
Added: November 19, 2013
Ivanova V., Ushchev P., The Scandinavian Journal of Economics 2019 Vol. 121 No. 3 P. 1244-1269
Standard measures of competitive toughness fail to capture the fact that, as consumers optimize intertemporally, firms operating today compete with (yet non-existent) businesses which will be started tomorrow. We develop a two-tier CES model of dynamic monopolistic competition in which the impact of product differentiation on the market outcome depends crucially on the elasticity of ...
Added: January 9, 2018
Osharin A., Verbus V., / Economics Education and Research Consortium. Series "EERC Working Paper Series". 2015. No. 15/E03.
The present paper extends the traditional Dixit and Stiglitz set-up by introducing consumers’/workers’ heterogeneity into a general equilibrium model of monopolistic competition. The model obtains a closed-form solution for a symmetric equilibrium and shows how the market outcome depends on the joint distribution of consumers’/workers’ taste and labor productivities. In contrast to the traditional framework, ...
Added: October 18, 2015
Osharin A., Thisse J., Ushchev P. et al., / Université catholique de Louvain. Series CORE DP-2013 "CORE Discussion Paper". 2013. No. 2013/71.
We develop a model of monopolistic competition that accounts for consumers' heterogeneity in both incomes and preferences. This model makes it possible to study the implications of income redistribution on the toughness of competition. We show how the market outcome depends on the joint distribution of consumers' tastes and incomes and obtain a closed-form solution ...
Added: February 22, 2014
Kichko S., Sergey Kokovin, Evgeny Zhelobodko, Journal of International Economics 2014 No. 94 P. 129-142
We develop a two-factor, two-sector trade model of monopolistic competition with variable elasticity of sub- stitution. Firms' prots and sizes may increase or decrease with market integration depending on the degree of asymmetry between countries. The country in which capital is relatively abundant is a net exporter of the manu- factured good, although both rm ...
Added: June 19, 2014
Behrens K., Lamorgese A. R., Ottaviano G. I. et al., Journal of International Economics 2009 No. 79 P. 259-265
Added: November 23, 2013
Kichko S., Kokovin S. G., Zhelobodko E. V., / Высшая школа экономики. Series WP BRP "Economics/EC". 2014. No. WP BRP 54/EC/2014.
We develop a two-factor, two-sector trade model of monopolistic competition with variable elasticity of substitution. Firms' profits and sizes may increase or decrease with market integration depending on the degree of asymmetry between countries. The country in which capital is relatively abundant is a net exporter of the manufactured good, although both firm sizes and ...
Added: April 3, 2014
СПб. : Скифия-Принт Санкт-Петербург, 2020
монографии раскрыты особенности трансформации международной торговой системы накануне пандемии коронавирусной инфекции COVID-19 и выделены возможные направления данных преобразований, акцентировано внимание на необходимости прекращения деструктивных по своим глобальным последствиям торговых войн, развитии новых проектов международного сотрудничества, таких как «Пояс и путь». Для наращивания экспортного потенциала национальных экономик предложено акцентировать внимание на новых сферах межгосударственного взаимодействия, таких ...
Added: February 5, 2021
Bykadorov I., / Economics Education and Research Consortium. Series "EERC Working Paper Series". 2010. No. 10/03E.
In Russia the chain-stores gained a considerable market power. In the paper we combine a Dixit-Stiglitz industry with a
monopolistic retailer. The questions addressed are: Does the retailer always deteriorate welfare, prices and variety of goods?
Which market structure is worse: Nash or Stackelberg behavior? What should be the public policy in this area? ...
Added: November 17, 2013
Morozkina A., Skryabina V., Вестник международных организаций: образование, наука, новая экономика 2021 Т. 16 № 1 С. 85-106
The informal BRICS group (Brazil, Russia, India, China and South Africa) is actively working to solve the most acute global problems. This is why opportunities for implementing the sustainable development goals (SDGs) at BRICS summits is a topic for urgent research. This article discusses the prospects for achieving SDG 17.11 by the least developed countries ...
Added: June 21, 2021
Kichko S., Ushchev P., Экономический журнал Высшей школы экономики 2017 Т. 21 № 1 С. 9-31
We study the consequences of opening trade between developed and developing countries. To this end, we develop a two-factor general equilibrium model of international trade with variable markups and two countries which differ in relative factor endowments. We show that the more developed country (a country with a higher relative capital endowment) is characterized by ...
Added: March 9, 2017
Mikheeva I. V., Loginovа A., Финансы: теория и практика 2016 Т. 20 № 6 С. 78-84
In the article the analysis of the influence of economic sanctions on the processes of Russia’s political and economic self-identification is carried out. Also the evaluation of reciprocal measures of Russia is carried out. The conducted research has shown that for stabilization of Russian economy it is necessary not only to re-direct the foreign trade relations, but also to ...
Added: September 15, 2016
СПб. : Санкт-Петербургский государственный университет, 2016
This collection includes scientific reports presented for participation in the International Conference: "The Evolution of the Global Trade System: problems and prospects" which took place on October 20-22, 2016 in St.Petersburg ...
Added: March 10, 2017
Zuev V. N., Ostrovskaya E., Дунаева М. С., Вестник Университета (Государственный университет управления) 2014 № 4 С. 107-116
Contemporary research of different international organizations such as OECD, WTO and UNCTAD concentrate more on global value chains (GVCs) analysis. The article is devoted to reasons for rising fragmentation of production in the world economy and forms of participation in GVCs, which are chosen by countries. The article demonstrates theoretical framework for various forms of ...
Added: May 1, 2014
Morozkina A., Skryabina V., М. : [б.и.], 2020
Article describes the current SDGs implementation by the BRICS countries. A general analysis LDCs and BRICS mutual trade shows a low involvement of least developed countries in trade with BRICS. Further the focus of the methodology of the study lies in computations of two trade indices and identification of new clusters of LDCs. The export ...
Added: November 27, 2020
Glazatova M., Daniltsev A. V., Medvedkov M. Y., Международная экономика 2014 № 3 С. 17-29
Trade restrictions on the way to “green” economy: a survival tool or a new protectionism The article considered the new risks of controls in national and international trade that affect the conditions of access of goods to national markets and the development of protectionism. The authors argue that the international community developed mechanisms to protect ...
Added: October 13, 2014
Kalimullina M., Орлов М. П., Heliyon 2020 Vol. 6 No. 11 P. E05355
This paper evaluates current food commodity trading from the Shariah point of view, which is particularly relevant for the MENA region. It focuses on futures contracts as the main instrument for grain trading and analyzes the traders’ activities. Through a qualitative and multifaceted approach, the paper accumulates and evaluates the suggestions for 15 Shariah-based alternatives ...
Added: November 2, 2020