| Abstract: | This paper offers a theoretical analysis of trade and the gains from trade in general equilibrium under imperfect competition by assuming that all firms in one country are of the labour-managed type (maximizing the income of labour) while those in the other country are of the profit-maximizing type. Our main conclusion is that if the labour-managed country is larger than or equal to the profit-maximizing country, the profit-maximizing country exports the imperfectly competitive commodity and gains from trade while the labour-managed country exports the perfectly competitive commodity and may lose from trade. |
