Integrated Strategy and International Trade Disputes: The Kodak-Fujifilm Case
AbstractThis paper examines the integration of market and nonmarket strategies in a setting involving market competition and international trade policy where governments serve as bargaining agents for firms. In the case modeled, the Eastman Kodak Company (Kodak) filed a Section 301 petition under US trade law against practices of Fuji Photo Film Company (Fujifilm) in the Japanese distribution system that Kodak alleges constitute trade barriers. The model has four components. The market model characterizes the competition between Fujifilm and Kodak, incorporating characteristics descriptive of the demand and market structure in Japan. Enforcement of an international trade agreement focusing on practices in a distribution system are problematic, so the second model characterizes the sustainability of concessions obtained through a trade agreement using a repeated game extension of the market model. The third model characterizes the bargaining between the US and Japanese governments using the preferences induced by the market model and the limits on sustainable concessions characterized in the second model. Using a common-agency framework, the fourth model represents the nonmarket competition between the two firms as they work to influence the bargaining positions of the governments. The result is a model in which market and nonmarket strategies are integrated in a formal theory of the resolution of trade disputes and the subsequent effects on market competition. The equilibrium characterized allows a comparative statics analysis of the synergies between market and nonmarket strategies. Copyright (c) 1997 Massachusetts Institute of Technology.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Economics & Management Strategy.
Volume (Year): 6 (1997)
Issue (Month): 1 (06)
Contact details of provider:
Web page: http://www.kellogg.northwestern.edu/research/journals/JEMS/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Maria Belen Usero & Zulima Fernandez, 2005. "First Come, First Served: An Analysis Of Pioneer And Follower Firms' Market And Nonmarket Actions In The European Mobile Telephone Industry," Business Economics Working Papers wb054812, Universidad Carlos III, Departamento de Economía de la Empresa.
- Sara Fisher Ellison & Catherine Wolfram, 2004. "Coordinating on Lower Prices: Pharmaceutical Pricing Under Political Pressure," Economics Working Papers 0048, Institute for Advanced Study, School of Social Science.
- Sara Fisher Ellison & Catherine Wolfram, 2001. "Pharmaceutical Prices and Political Activity," NBER Working Papers 8482, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.