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We present a dynamic quantity setting game, where players may continuously adjust their quantity targets, but incur convex adjustment costs when they do so. These costs allow players to use quantity targets as a partial commitment device. We show that the equilibrium path of such a game is...
Persistent link: https://www.econbiz.de/10013243651
and exit decisions in a dynamic oligopoly model (a la Bajari et al (2007)) and use it to analyse redesign activity in the …
Persistent link: https://www.econbiz.de/10013064071
In May, 1981, a voluntary export restraint (VER) was placed on exports of automobiles from Japan to the United States …
Persistent link: https://www.econbiz.de/10013232011
This paper tries to make sense of the recent trade dispute between the U.S. and Japan in autos and auto parts. The … Japan, and that these differences have contributed to the growing bilateral trade deficit in auto parts. The paper also …
Persistent link: https://www.econbiz.de/10013102060
manufacturers, and the fact that some of the most popular Japanese car models are assembled both in Japan and the U.S. We find … evidence that the Japan-assembled cars on average sell for more than those built in the U.S., but the estimated difference is … difference between the Japanese and U.S. built cars. For Hondas and more recent models of Toyotas, the Japan-built cars are no …
Persistent link: https://www.econbiz.de/10013066220
We have assessed the determinants of the choice of integration, relational contracting (keiretsu sourcing) and market sourcing by seven Japanese automobile manufacturers (OEMs) with respect to 54 components in light of contract economics. Our major findings are the following. First, the...
Persistent link: https://www.econbiz.de/10012760108
advantage as of 1980 to have been only 1-2%, much less than previously estimated. This results from the fact that Japan began …
Persistent link: https://www.econbiz.de/10013218735
Are foreign production and exports substitutes or complements? The continuing globalization of production makes the question of the relationship between trade and foreign direct investment ever more important. Standard theory of the multinational corporation (MNC) assumes substitution, while...
Persistent link: https://www.econbiz.de/10013218918
protectionist policies can in some cases increase aggregate welfare in North America at the expense of Japan …
Persistent link: https://www.econbiz.de/10013219191
The purpose of this paper is to identify conditions under which hedonic price indexes provide an exact measure of consumer welfare, so that the welfare effects of quality change can be inferred. Our results are quite positive in providing a rational for existing practices, though the conditions...
Persistent link: https://www.econbiz.de/10013219985