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Content Protection and Oligopolistic Interactions

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  • Krishna, Kala
  • Itoh, Motoshige

Abstract

In oligopolistic situations, content protection can have unexpected effects as it changes the nature of inter actions between input suppliers. With a duopoly, it does so in a mann er that makes the foreign firm wish to match price increases and decr eases of the domestic firm. Domestic input suppliers can, therefore, lose from such policies, even when set at free-trade levels. The rela tion between input demands, the form of protection, and the degree of substitution between inputs is shown to define the effects of conten t protection and to provide the basis for understanding who might lob by for protection in different environments. Copyright 1988 by The Review of Economic Studies Limited.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of Economic Studies.

Volume (Year): 55 (1988)
Issue (Month): 1 (January)
Pages: 107-25

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Handle: RePEc:bla:restud:v:55:y:1988:i:1:p:107-25

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  1. McCulloch, Rachel & Johnson, Harry G, 1973. "A Note on Proportionally Distributed Quotas," American Economic Review, American Economic Association, vol. 63(4), pages 726-32, September.
  2. Jeremy I. Bulow & John Geanakoplos & Paul D. Klemperer, 1983. "Multimarket Oligopoly," Cowles Foundation Discussion Papers 674, Cowles Foundation for Research in Economics, Yale University.
  3. Grossman, Gene M, 1981. "The Theory of Domestic Content Protection and Content Preference," The Quarterly Journal of Economics, MIT Press, vol. 96(4), pages 583-603, November.
  4. Hugo Sonnenschein, 1968. "The Dual of Duopoly Is Complementary Monopoly: or, Two of Cournot's Theories Are One," Journal of Political Economy, University of Chicago Press, vol. 76, pages 316.
  5. Sanyal, Kalyan K & Jones, Ronald W, 1982. "The Theory of Trade in Middle Products," American Economic Review, American Economic Association, vol. 72(1), pages 16-31, March.
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