High-Cost Domestic Joint Ventures and International Competition: Do Domestic Firms Gain?
This paper develops the idea that, when markets are imperfectly competitive, final-good producers may gain from a production joint venture (PJV) that produces part of their input requirements even though the PJV's marginal cost exceeds the input's market price. Production by the PJV lowers the market price of the input and this can raise final-good profits sufficiently to make the PJV worthwhile. Also, use of a joint venture internalizes the positive externality from a lower input price. These results are motivated by a setting in which domestic firms are dependent on foreign oligopolistic suppliers for a key input. Copyright 1996 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 37 (1996)
Issue (Month): 2 (May)
|Contact details of provider:|| Postal: 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297|
Phone: (215) 898-8487
Fax: (215) 573-2057
Web page: http://www.econ.upenn.edu/ier
More information through EDIRC
|Order Information:|| Web: http://www.blackwellpublishing.com/subs.asp?ref=0020-6598 Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Calmfors, Lars, 1993.
"Lessons from the macroeconomic experience of Sweden,"
European Journal of Political Economy,
Elsevier, vol. 9(1), pages 25-72, March.
- Calmfors, L., 1992. "Lessons from the Macroeconomic Experience of Sweden," Papers 522, Stockholm - International Economic Studies.
- Decressin, Jorg & Fatas, Antonio, 1995. "Regional labor market dynamics in Europe," European Economic Review, Elsevier, vol. 39(9), pages 1627-1655, December.
- Decressin, Jörg & Fatás, Antonio, 1994. "Regional Labour Market Dynamics in Europe," CEPR Discussion Papers 1085, C.E.P.R. Discussion Papers.
- Lindbeck, A., 1990. "The Swedish Experience," Papers 482, Stockholm - International Economic Studies.
- Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
- Bean, C R & Layard, P R G & Nickell, S J, 1986. "The Rise in Unemployment: A Multi-country Study," Economica, London School of Economics and Political Science, vol. 53(210(S)), pages 1-22, Supplemen.
- Per-Anders Edin & Robert Topel, 1997. "Wage Policy and Restructuring: The Swedish Labor Market since 1960," NBER Chapters,in: The Welfare State in Transition: Reforming the Swedish Model, pages 155-202 National Bureau of Economic Research, Inc.
- George E. Johnson & James D. Tomola, 1977. "The Fiscal Substitution Effect of Alternative Approaches to Public Service Employment Policy," Journal of Human Resources, University of Wisconsin Press, vol. 12(1), pages 3-26.
- Ackum, Susanne, 1991. " Youth Unemployment, Labor Market Programs and Subsequent Earnings," Scandinavian Journal of Economics, Wiley Blackwell, vol. 93(4), pages 531-543. Full references (including those not matched with items on IDEAS)