Factor Price Equalization under Imperfect Competition |
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| Authors: | Murray C. Kemp,& Masayuki Okawa |
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| Affiliation: | University of New South Wales, Sydney, 2052, Australia,;Aichi University, Toyohashi 441, Japan |
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| Abstract: | The paper describes a class of imperfectly competitive world economies for which factor price equalization is inevitable. Specifically, it is shown that factor price equalization must prevail if the trading economies differ at most in scale, if they share a constant-returns no-joint-products technology, and if each oligopolistic industry produces a commodity which, directly or indirectly, is internationally tradable. |
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