Measuring Returns to an Innovation in an Imperfectly Competitive Market: Application to Mechanical Harvesting of Processing Tomatoes in Taiwan

1996 ◽  
Vol 78 (3) ◽  
pp. 558-571 ◽  
Author(s):  
Shu‐Yu Huang ◽  
Richard J. Sexton
Keyword(s):  
Competitive Market ◽  
Imperfectly Competitive ◽  
Processing Tomatoes

scholarly journals Australia – Anti-Dumping Measures on A4 Copy Paper: Opening a Door to More Anti-Dumping Investigations

2021 ◽  
pp. 1-12
Author(s):  
Antonia Eliason ◽  
Matteo Fiorini
Keyword(s):  
Environmental Effects ◽  
Paper Industry ◽  
Competitive Market ◽  
Panel Report ◽  
Key Points ◽  
Imperfectly Competitive ◽  
Market Situation ◽  
Relative Attractiveness ◽  
Welfare Implications

Abstract This paper analyzes the Australia – Anti-Dumping Measures on A4 Copy Paper panel report, the second recent WTO dispute to involve a challenge to Indonesia's paper industry. The Indonesian paper industry benefits from reduced-cost inputs because of the Indonesian government's influence and subsidies over the timber and pulp market. The report offers the first interpretation of ‘particular market situation’ under Article 2.2 of the WTO's Anti-Dumping Agreement. At the same time, it raises questions regarding the appropriateness of using anti-dumping measures to address what are fundamentally subsidy issues. While the panel ultimately found that Australia's measure was inconsistent with Article 2.2, the paper shows that the panel's interpretation of ‘particular market situation’ increases the relative attractiveness of using anti-dumping duties instead of countervailing measures. Two key points on the welfare implications of the decision can be made. The first relates to the motivations of the Australian paper industry and the imperfectly competitive market in which Australian Paper operates. The second is the importance of challenging subsidies rather than imposing anti-dumping duties where the subsidies in question have negative environmental effects.

scholarly journals Dual-Labor Market and Unemployment Compensation

ECONOMICS ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 21-35
Author(s):  
Taro Abe
Keyword(s):  
Labor Market ◽  
Wage Rate ◽  
Competitive Market ◽  
Relative Wage ◽  
Dual Labor Market ◽  
Unemployment Compensation ◽  
Imperfectly Competitive ◽  
The Impact ◽  
Demand Constraint ◽  
Economic Regime

AbstractThis paper discusses the impact of unemployment compensation on the employment and wages of regular and non-regular labor in a dual-labor market. The model in this paper assumes an effective demand constraint and an imperfectly competitive market. The results obtained are as follows. An increase in unemployment compensation increases the wages of regular labor to maintain its productivity. However, this temporarily decreases the employment of regular labor, so that the productivity and wages of non-regular labor decrease. The result is an increase in the relative wage rate of regular labor and the relative amount of non-regular labor employed. This result is independent of any economic regime. In terms of the impact on employment volume, the existence of two regimes, one wage-driven and one profit-driven, is confirmed. However, the effect on employment is weaker if unemployment compensation is financed by taxing profits.

The Effects of Inter-Firm Cost Correlation, IT Investment, and Product Cost Accuracy on Production Decisions and Firm Profitability

2009 ◽  
Vol 23 (1) ◽  
pp. 51-78 ◽  
Author(s):  
Carolyn M. Callahan ◽  
E. Ann Gabriel ◽  
Rodney E. Smith
Keyword(s):  
Organizational Performance ◽  
Competitive Market ◽  
It Investment ◽  
Product Cost ◽  
Production Decisions ◽  
Specific Product ◽  
Simulation Techniques ◽  
Product Costing ◽  
Imperfectly Competitive ◽  
Firm Profitability

ABSTRACT: Using analytical and simulation techniques, we investigate the effect of inter-firm cost correlation, IT investment, and product cost accuracy on production decisions, and ultimately firm profitability in an imperfectly competitive market. Along with an unprecedented growth in investments in information technology (IT) over the last two decades, firms have made significant investments in IT to increase product cost accuracy. Yet, a variety of studies present mixed evidence as to the linkage between IT investment, product cost accuracy, and organizational performance. Further, while previous research has shown that IT may contribute to the improvement of organizational performance, contextual factors are important. We reexamine this issue in an imperfectly competitive market and product cost setting. We assert that knowledge of inter-firm cost correlation may be used to reduce the IT investment needed to achieve product cost accuracy and thereby optimize production and ultimately firm profit. To motivate our hypotheses, we develop and analyze an analytical model which incorporates IT investment, a costly, endogenous, imprecise product cost report, and inter-firm cost correlation. Using simulation techniques, we illustrate that production decisions informed by inter-firm cost correlation require less IT investment and result in higher firm profitability. Our emphasis on the initial design of product costing systems and the related IT requirements definition phase suggest that our result could be helpful to firm managers in establishing the optimal levels of IT investment and product cost accuracy in their specific product market setting.

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