2015 Fiscal Year Final Research Report
A Theoretical Study on the choice of product quality and the associated costs by MNEs
| Project/Area Number |
25380329
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Multi-year Fund |
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| Section | 一般 |
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| Research Field |
Economic policy
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| Research Institution | Nihon University |
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Principal Investigator |
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| Project Period (FY) |
2013-04-01 – 2016-03-31
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| Keywords | 国際経済学 |
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| Outline of Final Research Achievements |
There are two strands of criticism towards the main article of this study titled “Home-Market and Cost Effects of International Product-Quality Allocation.” One is to criticize the assumption that consumers’ utility in home and foreign countries, especially the parameters of product-quality valuation, depends on the income level of each country, from the previous theoretical/empirical literature of economics and business science. The other is that a possibility that Bertrand competition between two home firms results in zero price in case of zero marginal cost cannot be excluded.
To tackle with these problems, two related models have been developed: (1) technological spillovers to FDI host-country firms depending on efforts of spillover-prevention with costs, and (2) exporting costs depending on trade intermediation by a trading company. Moreover, extending the original two-country model to symmetric one has been prepared.
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| Free Research Field |
経済学
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