Oligopolistic Competition and International Trade: Examining Product Quality

Competencia oligopólica y comercio internacional: examinando la calidad de productos

Authors

DOI:

https://doi.org/10.29105/ensayos41.2-3

Keywords:

Organización Industrial, Comercio Internacional, Calidad de productos

Abstract

This paper proposes to theoretically examine products’ quality trade with an oligopolistic competition framework a la Hotelling rather than a monopolistic competition or perfect competition framework as is standard in international trade literature. This framework makes it possible to identify the quality of products while simultaneously capturing consumers' preference for variety and quality. The theoretical results allow the construction of two indices that capture quality through prices and quantities. The indices are tested using highly disaggregated data at the product level, and results on quality trade-in selected products and countries are presented. For example, Mexico and France export quality in the case of wines; however, the indicators show that French wines have higher quality.

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Author Biography

Michel Eduardo Betancourt Gomez, División de Estudios de Posgrado de la Facultad de Economía de la UNAM

Profesor y ayudante de investigacion posdoctoral en la División de Estudios de Posgrado de la Facultad de Economía de la UNAM

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Published

2022-11-22

How to Cite

Betancourt Gomez, M. E. (2022). Oligopolistic Competition and International Trade: Examining Product Quality: Competencia oligopólica y comercio internacional: examinando la calidad de productos. Ensayos Revista De Economía, 41(2), 169–192. https://doi.org/10.29105/ensayos41.2-3

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