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Theoretical and empirical research on international spillover effects of suppression of competition in domestic markets

Research Project

Project/Area Number 11630014
Research Category

Grant-in-Aid for Scientific Research (C)

Allocation TypeSingle-year Grants
Section一般
Research Field 経済理論
Research InstitutionKobe University

Principal Investigator

DEI Fumio  Kobe University, Graduate School of Business Administration, Professor, 大学院・経営学研究科, 教授 (90093541)

Co-Investigator(Kenkyū-buntansha) YANO Makoto  Keio University, Department of Economics, Professor, 経済学部, 教授 (30191175)
Project Period (FY) 1999 – 2001
Project Status Completed (Fiscal Year 2001)
Budget Amount *help
¥1,300,000 (Direct Cost: ¥1,300,000)
Fiscal Year 2001: ¥400,000 (Direct Cost: ¥400,000)
Fiscal Year 2000: ¥500,000 (Direct Cost: ¥500,000)
Fiscal Year 1999: ¥400,000 (Direct Cost: ¥400,000)
Keywordstrade / non-tradables / competition policy / vertical production chain / dumping / marginal cost / 談合 / カラーTV
Research Abstract

The first paper
In this study, we build a trade model that renders tractable the process in which imperfect competition in a country's downstream sector affects the rest of the world through international trade. For this purpose, we view internationally-traded goods as middle products in the vertical chain of production, produced upstream and transformed into final consumption goods downstream. Using that model, we demonstrate that suppression of competition in a country's downstream sector may serve as a beggar-thy-neighbor policy, increasing that country's own utility while reducing that of its trading partner countries.
The second paper
In many cases, dumping involves a massive demand shift from domestic products to competing foreign products that are newly introduced to the domestic market. This study presents a new way of modelling such a demand shift and demonstrates that the monopolistic supplier of a new product may sell at a price below the marginal cost. This result provides a new explanation for what may be called marginal cost dumping.

Report

(4 results)
  • 2001 Annual Research Report   Final Research Report Summary
  • 2000 Annual Research Report
  • 1999 Annual Research Report

URL: 

Published: 1999-04-01   Modified: 2016-04-21  

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