Research objectives and content
The objective of this project is the study of imperfect competition in a context with multiple markets for each commodity. which are segregated (physically or otherwise). Systems of regionally or internationally segregated markets are such examples. I plan to extend the stan- dard model of imperfect competition by introducing multiple trading posts for each commodity.
In such a framework I intend to address the following issues: - Qualitative analysis of the model with multiple markets for each commodity, which are imperfectly competitive: structure and properties of equilibrium outcomes.
- Imperfect competition as the source of price disparities across markets for the same commodity.
- Application to international trade with imperfectly competitive markets: In international trade, systems of markets are segregated not merely by region but most importantly but by the fact that different currencies are accepted as means of exchange. I plan to focus on the effects of a common currency on relative prices, balance of trade and welfare across international systems of imperfectly competitive markets.
Training contact (objective, benefit ant expected impact)
The objective of this project is the rigorous study of imperfect competition across systems of markets. The benefit from this project is expected to be twofold: On the policy level the conclusions of this research are expected to be useful to policy-makers, as this project is directed to issues of monetary unification. On the scientific level I expect to produce articles for presentation in international conferences and for publication to scientific journals.
The topic is a yet unexplored area of imperfect competition. I expect researchers from other fields of economics to benefit from this research since the intended study has many diverse applications in economics (e.g. regional economics).