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An Airline Merger in Japan: A Case Study Revealing Principles of Japanese Merger Control

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  • Koki Arai

Abstract

This paper is a case study of a Japanese merger control in the airline industry. The objective is to investigate the underlying principles of the Fair Trade Commission of Japan (JFTC) through a domestic merger on airlines, where reports are available. From applying a checklist arranged by Röller et al. (Working Paper No. 543, The Research Institute of Industrial Economics, 2000), the merger control policy of the JFTC is competition-oriented, systematic designed and transparent. But the direction of the policy is a kind of regulatory one.

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  • Koki Arai, 2004. "An Airline Merger in Japan: A Case Study Revealing Principles of Japanese Merger Control," Journal of Industry, Competition and Trade, Springer, vol. 4(3), pages 207-222, September.
    • Handle: RePEc:kap:jincot:v:4:y:2004:i:3:p:207-222
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    References listed on IDEAS

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    1. Lars-Hendrik Röller & Johan Stennek & Frank Verboven, 2006. "Efficiency Gains from Mergers," Chapters, in: Fabienne IIzkovitz & Roderick Meiklejohn (ed.), European Merger Control, chapter 3, Edward Elgar Publishing.
    2. David Scheffman & Mary Coleman, 2002. "Current Economic Issues at the FTC," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 21(4), pages 357-371, December.
    3. Damien J. Neven & Lars-Hendrik R–ller, 2003. "On the Scope of Conflict in International Merger Control," Journal of Industry, Competition and Trade, Springer, vol. 3(4), pages 235-249, December.
    4. Clougherty, Joseph A., 2002. "US domestic airline mergers: the neglected international determinants," International Journal of Industrial Organization, Elsevier, vol. 20(4), pages 557-576, April.
    5. Nakamura, Masao & Shaver, J. Myles & Yeung, Bernard, 1996. "An empirical investigation of joint venture dynamics: Evidence from U.S.-Japan joint ventures," International Journal of Industrial Organization, Elsevier, vol. 14(4), pages 521-541, June.
    6. Neven, Damien J. & Roller, Lars-Hendrik, 1996. "Rent sharing in the European airline industry," European Economic Review, Elsevier, vol. 40(3-5), pages 933-940, April.
    7. Blonigen, Bruce A. & Ellis, Christopher J. & Fausten, Dietrich, 2005. "Industrial groupings and strategic FDI," Japan and the World Economy, Elsevier, vol. 17(2), pages 125-150, April.
    8. Odagiri, Hiroyuki & Hase, Tatsuo, 1989. "Are mergers and acquisitions going to be popular in Japan too? : An empirical study," International Journal of Industrial Organization, Elsevier, vol. 7(1), pages 49-72, March.
    9. Bruce A. Blonigen & Christopher J. Ellis & Dietrich Fausten, 2000. "Industrial Groupings and Strategic FDI: Theory and Evidence," NBER Working Papers 8046, National Bureau of Economic Research, Inc.
    10. Borenstein, Severin, 1990. "Airline Mergers, Airport Dominance, and Market Power," American Economic Review, American Economic Association, vol. 80(2), pages 400-404, May.
    11. Yeh, Tsung-ming & Hoshino, Yasuo, 2002. "Productivity and operating performance of Japanese merging firms: Keiretsu-related and independent mergers," Japan and the World Economy, Elsevier, vol. 14(3), pages 347-366, August.
    12. Nakamura, Richard, 2002. "Preliminary Report on the Current State of Mergers & Acquisitions in Japan," EIJS Working Paper Series 140, Stockholm School of Economics, The European Institute of Japanese Studies.
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    Cited by:

    1. Doi, Naoshi & Ohashi, Hiroshi, 2019. "Market structure and product quality: A study of the 2002 Japanese airline merger," International Journal of Industrial Organization, Elsevier, vol. 62(C), pages 158-193.
    2. Koki Arai, 2017. "Ex-post examination of mergers: effects on retail prices," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 24(1-2), pages 145-162, April.
    3. Tomaso Duso & Klaus Gugler & Burcin Yurtoglu, 2005. "EU Merger Remedies: A Preliminary Empirical Assessment," CIG Working Papers SP II 2005-16, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    4. Naoshi Doi, 2022. "Choice of Policy Instruments with Endogenous Quality: Per‐Passenger and Per‐Flight Airport Charges in Japan," Journal of Industrial Economics, Wiley Blackwell, vol. 70(1), pages 44-88, March.
    5. DOI Naoshi & OHASHI Hiroshi, 2015. "An Airline Merger and its Remedies: JAL-JAS of 2002," Discussion papers 15100, Research Institute of Economy, Trade and Industry (RIETI).
    6. Mizutani, Jun, 2011. "Airline merger and competition in Japan: A conduct parameter and theoretical price approach," Journal of Air Transport Management, Elsevier, vol. 17(2), pages 120-124.

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