IDEAS home Printed from https://ideas.repec.org/a/bla/coecpo/v11y1993i2p50-61.html
   My bibliography  Save this article

Japanese Antitrust: Reconciling Theory And Evidence

Author

Listed:
  • ANDREW R. Dick

Abstract

Japanese antitrust law exempts a variety of vertical and horizontal restraints that remain closely regulated in the United States. Despite these dissimilar antitrust environments, however, market concentration, firms' exercise of market power, and deadweight loss from monopoly are highly similar in the two countries. The hypothesis that antitrust alters the relative mix of price to non‐price competition rather than the absolute level that competition assumes might explain this empirical puzzle. Thus, this paper studies Japanese antitrust exemptions for resale price maintenance and export cartel associations to illustrate how adopting vertical and horizontal restraints has allowed Japanese firms to substitute towards forms of non‐price competition better tailored to industry characteristics.

Suggested Citation

  • ANDREW R. Dick, 1993. "Japanese Antitrust: Reconciling Theory And Evidence," Contemporary Economic Policy, Western Economic Association International, vol. 11(2), pages 50-61, April.
    • Handle: RePEc:bla:coecpo:v:11:y:1993:i:2:p:50-61
    DOI: 10.1111/j.1465-7287.1993.tb00379.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1465-7287.1993.tb00379.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1465-7287.1993.tb00379.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jacquemin, Alexis & Nambu, Tsuruhiko & Dewez, Isabelle, 1981. "A Dynamic Analysis of Export Cartels: The Japanese Case," Economic Journal, Royal Economic Society, vol. 91(363), pages 685-696, September.
    2. Takatoshi Ito & Masayoshi Maruyama, 1991. "Is the Japanese Distribution System Really Inefficient?," NBER Chapters, in: Trade with Japan: Has the Door Opened Wider?, pages 149-174, National Bureau of Economic Research, Inc.
    3. Larson, David A, 1970. "An Economic Analysis of the Webb-Pomerene Act," Journal of Law and Economics, University of Chicago Press, vol. 13(2), pages 461-500, October.
    4. Leonard H. Lynn, 1988. "Organizing Business: Trade Associations in America and Japan," Books, American Enterprise Institute, number 917653, September.
    5. Baumol, William J & Ordover, Janusz A, 1985. "Use of Antitrust to Subvert Competition," Journal of Law and Economics, University of Chicago Press, vol. 28(2), pages 247-265, May.
    6. G.F. Mathewson & R.A. Winter, 1984. "An Economic Theory of Vertical Restraints," RAND Journal of Economics, The RAND Corporation, vol. 15(1), pages 27-38, Spring.
    7. Shinjo, Koji & Dot, Noriyuki, 1989. "Welfare loss calculation for Japanese industries," International Journal of Industrial Organization, Elsevier, vol. 7(2), pages 243-256, June.
    8. Demsetz, Harold, 2010. "How Many Cheers for Antitrust 100 Years," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 4, pages 189-202.
    9. Robert Z. Lawrence, 1987. "Imports in Japan: Closed Markets or Minds?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(2), pages 517-554.
    10. Bittlingmayer, George, 1985. "Did Antitrust Policy Cause the Great Merger Wave?," Journal of Law and Economics, University of Chicago Press, vol. 28(1), pages 77-118, April.
    11. Flath, David & Nariu, Tatsuhiko, 1989. "Returns policy in the Japanese marketing system," Journal of the Japanese and International Economies, Elsevier, vol. 3(1), pages 49-63, March.
    12. Klein, Benjamin & Leffler, Keith B, 1981. "The Role of Market Forces in Assuring Contractual Performance," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 615-641, August.
    13. Marvel, Howard P & McCafferty, Stephen, 1985. "The Welfare Effects of Resale Price Maintenance," Journal of Law and Economics, University of Chicago Press, vol. 28(2), pages 363-379, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dick, Andrew R., 1992. "Japanese Antitrust Law and the Competitive Mix," Working Papers 74, The University of Chicago Booth School of Business, George J. Stigler Center for the Study of the Economy and the State.
    2. Butz, David A, 1997. "Vertical Price Controls with Uncertain Demand," Journal of Law and Economics, University of Chicago Press, vol. 40(2), pages 433-459, October.
    3. Kenji, Matsui, 2011. "Resale price maintenance for supply chains distributing products with demand uncertainty," International Journal of Production Economics, Elsevier, vol. 134(2), pages 375-387, December.
    4. Tommy Staahl Gabrielsen & Bjørn Olav Johansen, 2017. "Resale Price Maintenance with Secret Contracts and Retail Service Externalities," American Economic Journal: Microeconomics, American Economic Association, vol. 9(1), pages 63-87, February.
    5. Howard P. Marvel, 1985. "How Fair Is Fair Trade?," Contemporary Economic Policy, Western Economic Association International, vol. 3(3), pages 23-35, March.
    6. Cagé, Julia & Rouzet, Dorothée, 2015. "Improving “national brands”: Reputation for quality and export promotion strategies," Journal of International Economics, Elsevier, vol. 95(2), pages 274-290.
    7. William Shughart & Fred McChesney, 2010. "Public choice theory and antitrust policy," Public Choice, Springer, vol. 142(3), pages 385-406, March.
    8. Julia Cage & Dorothée Rouzet, 2015. "Improving “National Brands”: Reputation for Quality and Export Promotion Strategies," SciencePo Working papers hal-01167909, HAL.
    9. Thorsten Posselt, 1998. "Motive für Selektiwertrieb — Eine institutionenökonomische Untersuchung," Schmalenbach Journal of Business Research, Springer, vol. 50(12), pages 1098-1119, December.
    10. Tatsuhiko Nariu & David Flath & Atsuo Utaka, 2012. "Returns System With Rebates," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(4), pages 1243-1256, November.
    11. Frank Mathewson & Ralph Winter, 1998. "The Law and Economics of Resale Price Maintenance," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 13(1), pages 57-84, April.
    12. Chen, Miao-Ling, 2004. "The effects of advertising on retail price competition under vertical restraint: A Japanese case," Journal of Business Research, Elsevier, vol. 57(3), pages 277-283, March.
    13. Roger D. Blair & Wenche Wang, 2017. "Resale Price Maintenance: An Economic Analysis of its Anticompetitive Potential," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 50(2), pages 153-168, March.
    14. Hüschelrath, Kai, 2008. "Is it Worth all the Trouble? The Costs and Benefits of Antitrust Enforcement," ZEW Discussion Papers 08-107, ZEW - Leibniz Centre for European Economic Research.
    15. Kotabe, Masaaki & Wheiler, Kent W., 1998. "Perceptions of anticompetitive practices in Japan and the market performance of foreign firms," Journal of International Management, Elsevier, vol. 4(3), pages 173-200, November.
    16. Ayelet Israeli & Eric T. Anderson & Anne T. Coughlan, 2016. "Minimum Advertised Pricing: Patterns of Violation in Competitive Retail Markets," Marketing Science, INFORMS, vol. 35(4), pages 539-564, July.
    17. Etro, Federico, 2016. "Research in economics and industrial organization," Research in Economics, Elsevier, vol. 70(4), pages 511-517.
    18. Jakub Kastl & David Martimort & Salvatore Piccolo, 2011. "“When Should Manufacturers Want Fair Trade?”: New Insights from Asymmetric Information when Supply Chains Compete," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 20(3), pages 649-677, September.
    19. Andrew R. Dick, 1989. "Are Export Cartels Efficiency-Enhancing or Monopoly-Promoting?," UCLA Economics Working Papers 601, UCLA Department of Economics.
    20. Itai Ater & Oren Rigbi, 2007. "Price Control In Franchised Chains: The Case Of McDonald's Dollar Menu," Discussion Papers 06-022, Stanford Institute for Economic Policy Research.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:coecpo:v:11:y:1993:i:2:p:50-61. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/weaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.