Description
Book SynopsisTrade, Markets and Welfare brings together a selection of Kelvin Lancaster's seminal work on trade under monopolistic competition and oligopoly with differentiated products, as well as recent extensions to the analysis of markets in which the characteristics of products can be varied freely.
Professor Lancaster argues that protection can sometimes improve world welfare, that there can be mutual trade gains between absolutely identical economies, and that entries of an additional firm may sometimes increase industry profits. The selection also includes some of Professor Lancaster's earlier works on trade and papers on several topics related to the theory of economic policy, including second best theory, wages policy, and a simple dynamic game model of capitalist growth.
Trade, Markets and Welfare complements the first volume of Kelvin J. Lancaster's selected essays - Modern Consumer Theory - by expanding applications of consumer choice theory into new areas.
Table of ContentsContents: 1. Introduction Part I: Trade 2. Intra-Industry Trade under Perfect Monopolistic Competition 3. Protection and Product Differentiation 4. Multi-Product Defensive Monopoly in an Open Economy 5. The “Product Variety’ Case for Protection 6. The Heckscher–Ohlin Trade Model 7. Protection and Real Wages Part II: Markets 8. Innovative Entry: Profit Hidden beneath the Zero 9. Product Differentiation in Two-Tiered Industries 10. Information and Product Differentiation 11. The Economics of Product Variety Part III: Welfare 12. The General Theory of Second Best 13. Strategic Considerations in Second Best 14. Productivity-Geared Wage Policies 15. The Dynamic Inefficiency of Capitalism References Index
