Oligopoly Resurgence in International Trade Shakes Up Global Profit Allocation
The article discusses how big companies have been important in international trade models. In the past, economists focused on imperfect competition but later switched to monopolistic competition. However, the use of oligopoly in trade models is being reconsidered. The researchers argue that including oligopolistic firms in international trade analysis is necessary. They suggest that future studies should look at how trade policies affect profits across countries.