Superstar Firms and Market Power: Welfare Consequences and Antitrust Implications
| Project/Area Number |
19K13681
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| Research Category |
Grant-in-Aid for Early-Career Scientists
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| Allocation Type | Multi-year Fund |
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| Review Section |
Basic Section 07040:Economic policy-related
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| Research Institution | Osaka University |
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Principal Investigator |
潘 麗君 大阪大学, 社会経済研究所, 招へい教員 (70784320)
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| Project Period (FY) |
2019-04-01 – 2022-03-31
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| Project Status |
Granted (Fiscal Year 2020)
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| Budget Amount *help |
¥1,820,000 (Direct Cost: ¥1,400,000、Indirect Cost: ¥420,000)
Fiscal Year 2020: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
Fiscal Year 2019: ¥910,000 (Direct Cost: ¥700,000、Indirect Cost: ¥210,000)
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| Keywords | market structure / firm heterogeneity / merger / heterogeneous firms / superstar firms / market power / antitrust |
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| Outline of Research at the Start |
We establish a theoretical framework to examine the market power of superstar firms and analyze antitrust policies, allowing for the strategic interactions among superstar firms and their impact on small firms. We pay special attention to merger in a generalized model and entry with income effects.
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| Outline of Annual Research Achievements |
1. Publication:I published a paper entitled "Competition among Large and Heterogeneous Small Firms" in Economics Letters. This paper considers the coexistence of superstar firms and small firms but account for heterogeneity among the small firms.
2. International conference: My work on merger was accepted for presentation at the 2021 International Industrial Organization Conference (IIOC). I received valuable advice from the discussant and audience.
3. New projects: I started new projects exploring the endogenous choice on strategic behavior by firms, which then determine the market structure.
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| Current Status of Research Progress |
Current Status of Research Progress
2: Research has progressed on the whole more than it was originally planned.
Reason
1. After careful development of the model and discussion with my coauthor, the paper on merger is now close to completion. The current draft is much more full-fledged than before, with a richer analysis, more precise intuitions and closer policy relevance.
2. With careful revision, the new paper entitled "Competition among large and heterogeneous small firms" has been published in economics letters.
3. Based on my research so far, I started new projects exploring the internal reasons of firms' market power.
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| Strategy for Future Research Activity |
1. I will complete the paper on merger and submit it to a top journal.
2. I will work on the new projects and present the preliminary results in international conferences, such as the European Association for Research in Industrial Economics (EARIE) 2021 virtual conference.
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Report
(2 results)
Research Products
(6 results)
