Competition, technology, and trade in oligopolistic industries

In this paper, I examine the role of oligopolistic competition in international trade when countries have different technologies. I look at a situation in which countries have the same demand structure with constant elasticity, markets are segmented between countries, and transport costs are required for trade. In oligopoly, each county can have the critical level of competition. With those critical levels, I show when two-way trade is promoted or vanishes in the cases of small or large technology gaps. I also investigate a possibility that antitrust policy can backfire in an open economy.