The paradox of China’s tobacco industry: competition through monopoly policy

The market for “lemons”: quality uncertainty and the market mechanism

Allen Liao and Benjamin Cole

Industrial and Corporate Change, 2021, vol. 30, issue 6, 1479-1498

Abstract: This study documents the evolution of China’s tobacco industry over 70 years from that of unordered local trade to ordered competitive national industry. We develop a theoretical framework regarding three levers the central government utilized—quota pliability, price tiering, and public rankings—to shift the attention of producers from merely fulfilling quotas to seeking quota partners, building scale economies, and developing high quality brands. The findings provide insights to those interested in planned economies, industry dynamics, and China’s industrial development.

Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1093/icc/dtab024 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:indcch:v:30:y:2021:i:6:p:1479-1498.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Industrial and Corporate Change is currently edited by Josef Chytry

More articles in Industrial and Corporate Change from Oxford University Press and the Associazione ICC Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().