2001 Fiscal Year Final Research Report Summary
Theoretical and empirical research on international spillover effects of suppression of competition in domestic markets
| Project/Area Number |
11630014
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
経済理論
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| Research Institution | Kobe University |
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Principal Investigator |
DEI Fumio Kobe University, Graduate School of Business Administration, Professor, 大学院・経営学研究科, 教授 (90093541)
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| Co-Investigator(Kenkyū-buntansha) |
YANO Makoto Keio University, Department of Economics, Professor, 経済学部, 教授 (30191175)
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| Project Period (FY) |
1999 – 2001
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| Keywords | trade / non-tradables / competition policy / vertical production chain / dumping / marginal cost |
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| 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.
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