Partial Ownership Arrangements and Collusion in the Automobile Industry
This paper develops a conjectural variation model that allows for partial ownership arrangements and foreign trade. This model is applied to the Japanese and U.S. automobile industries. Although collusion is found to occur in the Japanese automobile industry, it is found to be more competitive than the U.S. automobile industry. The effect imports have on firms' price-cost margins in both countries is also found to be different. Copyright 1997 by Blackwell Publishing Ltd
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Volume (Year): 45 (1997)
Issue (Month): 2 (June)
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