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| Volume 1,
No. 1, April
2002 |
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Consumer
and Trade Prices in General Equilibrium
with
Imperfect Competition
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| Gareth
D. Myles |
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| Department
of Economics, University of Exeter, U.K. |
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| Abstract |
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| A
two-sector model of imperfect competition with intermediate goods
is analyzed. An objective demand function is constructed and
equilibrium studied through simulation. The results indicate that
trade prices may exceed consumer prices and that collusion between
firms may benefit both firms and consumers and result in
intermediate goods trading at less than marginal cost.
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Key words:
prices; equilibrium; oligopoly
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| JEL
classification:
D5; L1 |
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