This paper examines the stability of the collusive equilibrium in Friedman’s repeated game through an empirical study of Taiwan’s flour market. We calculate the payoff streams following a deviation or adherence for each firm. The evidence shows that the specified punishment path is credible,...

This article investigates price asymmetry by using an almost complete sample of Taiwanese industries to see whether output prices respond faster to cost increases than they do to decreases. In contrast with the earlier literature, the evidence shows that positive price asymmetry cannot be...

This paper investigates Taiwan's development strategy from both demand-side (policies that bias production incentives against domestic market demand and toward exports) and supply-side (policies that favour tradable against service or non-tradable sectors) perspectives. In the early stages of...

This paper uses data from Taiwan'S banking sector to investigate whether state-owned banks can serve as an internal regulation mechanism to sustain market competition. In contrast to the traditional second-best literature, the evidence shows that a certain degree of market coordination exists in...

This paper uses data from Taiwan’s banking system to investigate the relationship between banking market structure and industrial growth. We find that bank concentration does not necessarily promote output growth of those industries that are more dependent on external finance if the government...

This article uses cross-country data to empirically investigate through which channel legal origin can influence antitrust effectiveness. The evidence shows that the adaptability channel (legal flexibility) is more important for explaining antitrust effectiveness than the political channel...

This paper investigates the channels through which institutions may have an effect on market competition. The main result of the investigation is that there is a strong and robust relationship between institutions and market competition: economies with better institutions are much more likely to...

With the use of data from Taiwan's flour market, this article studies the impacts of wheat import quotas and flour price ceilings on the market. The evidence indicates that flour prices were set above competitive equilibrium levels during most of the regulation period. The high prices and profit...

This paper investigates the relationships among the competition authority's independence, antitrust effectiveness, and institutions. The evidence suggests that the authority's effectiveness is empirically associated with the independence. However, it is the de facto and not de jure independence...