A Comment on 'The Loss from Trade Under International Cournot Oligopoly with Cost Asymmetry' by Dong and Yuan (2010)

5 Pages Posted: 29 Dec 2012

See all articles by Rabah Amir

Rabah Amir

University of Arizona - Department of Economics; University of Arizona

Jim Y. Jin

University of St. Andrews - School of Management

Michael Troege

ESCP-Europe

Date Written: October 27, 2012

Abstract

This note corrects some oversights in Dong and Yuan (2010). We show, in particular, that their condition for intra-industry trade to reduce global welfare can never be satisfied. Using a new example, we demonstrate that, nevertheless, their fundamental insight remains correct: Under Cournot competition, trade can reduce global welfare when firms and countries are asymmetric.

Keywords: Trade, Imperfect Competition, Cournot, Asymmetry

JEL Classification: F12

Suggested Citation

Amir, Rabah and Jin, Jim Y. and Troege, Michael, A Comment on 'The Loss from Trade Under International Cournot Oligopoly with Cost Asymmetry' by Dong and Yuan (2010) (October 27, 2012). Available at SSRN: https://ssrn.com/abstract=2194493 or http://dx.doi.org/10.2139/ssrn.2194493

Rabah Amir

University of Arizona - Department of Economics ( email )

Tucson, AZ 85721
United States

University of Arizona ( email )

Department of History
Tucson, AZ 85721
United States

Jim Y. Jin

University of St. Andrews - School of Management ( email )

The Gateway
Gateway
St. Andrews, Fife KY16 9SS
United Kingdom

Michael Troege (Contact Author)

ESCP-Europe ( email )

79, Avenue de Republique
75543 Paris, Cedex 11, 75011
France
33/149232601 (Phone)

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