may force Ricardian economies into autarchy. We apply the concepts of monopoly equilibrium by Baldwin (1948) to the model … of Cordella and Gabszewicz (1997) to show that, differently from the oligopoly case, trade always arises at a monopoly … equilibrium whereas autarchy is never an outcome. As a consequence, monopoly Pareto-dominates oligopoly. …

We extend structural gravity models of bilateral trade flows to oligopolistic competition. We show that conventional … pronounced due to the change in competition among domestic and foreign firms. …