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논문 기본 정보

자료유형
학술저널
저자정보
Koo Woong Park (Seoul National University)
저널정보
인하대학교 정석물류통상연구원 Journal of International Logistics and Trade Journal of International Logistics and Trade Vol.6 No.2
발행연도
2008.12
수록면
23 - 48 (26page)

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I study the economic implications of the world oil market dominated by OPEC and non-OPEC major oil producing countries using a general equilibrium model of trilateral trade with oil duopoly. There are three countries and three goods, x, y, and oil (z). Home (H) is endowed with good x. Foreign (F) is endowed with good y and also produces oil (z). Middle (M) is and oil producing country and supplies oil only. I consider two types of oil market structure; (1) Cournot duopoly and (2) perfect competition. I find that Foreign is actually worse off under Cournot duopoly despite being a duopolist for wide range of parameter values that reflect real world situations. This is mainly due to reduced consumption of oil and reduced value of good y endowment under duopoly when Foreign is a net oil exporter or oil autarky, and is also due to worsening terms-of-trade effect under duopoly when Foreign is a net oil importer. Welfare reversal with higher welfare of Foreign under oil duopoly occurs only under highly unrealistic parameter values, and hence the main results of the study remain robust.

목차

Abstract
1. Introduction
2. Cournot oil duopoly
3. Equilibrium in Cournot duopoly
4. Competitive oil supply
5. Welfare comparison
6. Conclusion
Acknowledgements
References

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