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The Annals of Regional Science

, Volume 48, Issue 1, pp 71–99 | Cite as

National oligopolies and economic geography

  • Barbara Annicchiarico
  • Federica Orioli
  • Federico Trionfetti
Original Paper

Abstract

We replace monopolistic competition with national oligopolies in a model of “new economic geography”. There are many possible bifurcation diagrams, but unlike in monopolistic competition, the symmetric equilibrium is always stable for low trade costs. The antitrust policy, though identical in both countries, affects the geographical distribution of firms. In turn, migration attenuates the effectiveness of the antitrust policy in eliminating collusive behavior. For high trade costs, a toughening of the antitrust policy is likely to result in more agglomeration and may reduce world welfare. The antitrust policy is more likely to be welfare improving when market integration progresses.

JEL Classification

R12 R13 F12 

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Copyright information

© Springer-Verlag 2010

Authors and Affiliations

  • Barbara Annicchiarico
    • 1
  • Federica Orioli
    • 2
  • Federico Trionfetti
    • 3
  1. 1.Department of EconomicsUniversity of Rome “Tor Vergata”RomeItaly
  2. 2.University of Rome “Luiss Guido Carli”RomeItaly
  3. 3.GREQAMUniversité de la MéditerranéeMarseilleFrance

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