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Purpose The aim of this paper is to investigate whether a Nash equilibrium of a two-country trading economy is symmetry-breaking or not. Design/methodology/approach The approach to tackle this topic is a theoretical treatment by the general equilibrium trade theory and game theory. Findings If...
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Purpose – This chapter aims to examine trade patterns and gains from trade in a two-country general equilibrium model of increasing returns and oligopoly. Approach – A general equilibrium model of increasing returns and oligopoly. Findings – The determination of patterns of specialization...
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