Partial Ownership Arrangements and Collusion in the Automobile Industry

Wilson A. Alley

Journal of Industrial Economics, 1997, vol. 45, issue 2, 191-205

Abstract: This paper develops a conjectural variation model that allows for partial ownership arrangements and foreign trade. This model is applied to the Japanese and US automobile industries. Although collusion is found to occur in the Japanese automobile industry, it is found to be more competitive than the US automobile industry. The effect imports have on firms' price–cost margins in both countries is also found to be different.

Date: 1997
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