Unimodality of Equilibrium Welfare in International Trade Under Monopolistic Competition Full article
| Conference |
XIV International Conference Optimization and Applications 18-22 Sep 2023 , Петровац, Черногория |
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| Source | Advances in Optimization and Applications : 13th International Conference, OPTIMA 2022, Petrovac, Montenegro, September 26–30, 2022, Revised Selected Papers Compilation, Springer Cham. 2023. 197 c. ISBN 978-3-031-22990-9. |
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| Journal |
Communications in Computer and Information Science
ISSN: 1865-0929 |
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| Output data | Year: 2023, Volume: 1913, Pages: 107-118 Pages count : 12 DOI: 10.1007/978-3-031-48751-4_8 | ||
| Tags | Autarky, Comparative Statics, Free Trade, International Trade, Market Equilibrium, Monopolistic Competition, Unimodality of Welfare | ||
| Authors |
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| Affiliations |
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Funding (1)
| 1 | Sobolev Institute of Mathematics | FWNF-2022-0019 |
Abstract:
We study the classical monopolistic competition trade model. The utility of consumers is additively separable with pro competitive sub-utility function, the production costs are linear, and the transport cots are “of iceberg type”. We examine the local comparative statics of market equilibrium with respect to transport costs. Earlier we found the following results: (1) (intuitive!) an increase w.r.t. transport costs near free trade leads to a decrease in social welfare; (2) (counter intuitive!) an increase w.r.t. transport costs near autarky leads to an increase in social welfare. Thus, social welfare is non-monotonic. In this regard, a natural question arises about the unimodality of social wel fare. We show the unimodality of social welfare for an important class of elementary utility function, namely, for the Behrens–Murata function.
Cite:
Bykadorov I.
Unimodality of Equilibrium Welfare in International Trade Under Monopolistic Competition
In compilation Advances in Optimization and Applications : 13th International Conference, OPTIMA 2022, Petrovac, Montenegro, September 26–30, 2022, Revised Selected Papers. – Springer Cham., 2023. – C.107-118. – ISBN 978-3-031-22990-9. DOI: 10.1007/978-3-031-48751-4_8 Scopus OpenAlex
Unimodality of Equilibrium Welfare in International Trade Under Monopolistic Competition
In compilation Advances in Optimization and Applications : 13th International Conference, OPTIMA 2022, Petrovac, Montenegro, September 26–30, 2022, Revised Selected Papers. – Springer Cham., 2023. – C.107-118. – ISBN 978-3-031-22990-9. DOI: 10.1007/978-3-031-48751-4_8 Scopus OpenAlex
Dates:
| Published print: | Dec 14, 2023 |
| Published online: | Dec 14, 2023 |
Identifiers:
| Scopus: | 2-s2.0-85180634013 |
| OpenAlex: | W4389711841 |
Citing:
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