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Economic Consequences of VIE When Consumer are Constrained
Oleh:
Nagaoka, Sadao
Jenis:
Article from Bulletin/Magazine
Dalam koleksi:
JAPAN AND THE WORLD ECONOMY vol. 9 no. 4 (1997)
,
page 557-566.
Topik:
ECONOMICS
;
economic
;
VIE
;
consumer
Ketersediaan
Perpustakaan Pusat (Semanggi)
Nomor Panggil:
JJ47.7
Non-tandon:
1 (dapat dipinjam: 0)
Tandon:
tidak ada
Lihat Detail Induk
Isi artikel
This paper, using a Bertrand model of duopoly competition, shows that voluntary import expansion (VIE) forced on consumers, instead of on a producer, is also significantly anticompetitive. VIE causes a higher price as well as higher average cost of supply. When firms can use non - linear pricing, VIE forces marginal cost pricing by the disadvantaged firm, so that it loses incentive for cost - reduction.
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