IDEAS home Printed from https://ideas.repec.org/a/taf/recsxx/v7y2004i2p355-367.html
   My bibliography  Save this article

Partial Ownership Arrangements in the Japanese Automobile Industry; 1990 - 2000

Author

Listed:
  • Hiroshi Ono
  • Takuya Nakazato
  • Colin Davis
  • Wilson Alley

Abstract

The end of the 1990's saw a number of foreign automobile manufacturers become the largest shareholders in several Japanese automobile manufacturers. It seems logical to conclude that a firm only enters into a partial ownership arrangement (POA) if it is profit maximizing. However, research to date has treated POAs as if exogenous to the model. This paper develops a model that assumes POAs are determined endogenously. Data for the Japanese automobile industry are then used to investigate the factors that determine whether a firm enters into a POA, and the effects a POA has on the price-cost margin. The findings of this paper suggest that while both foreign and domestic firms take an interest in product mix when exploring POAs in the Japanese market, they have differing profit incentives. Furthermore, the level of ownership has a positive effect on POAs.

Suggested Citation

  • Hiroshi Ono & Takuya Nakazato & Colin Davis & Wilson Alley, 2004. "Partial Ownership Arrangements in the Japanese Automobile Industry; 1990 - 2000," Journal of Applied Economics, Taylor & Francis Journals, vol. 7(2), pages 355-367, November.
    • Handle: RePEc:taf:recsxx:v:7:y:2004:i:2:p:355-367
    DOI: 10.1080/15140326.2004.12040614
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/15140326.2004.12040614
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/15140326.2004.12040614?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Clarke, Roger & Davies, Stephen & Waterson, Michael, 1984. "The Profitability-Concentration Relation: Market Power or Efficiency?," Journal of Industrial Economics, Wiley Blackwell, vol. 32(4), pages 435-450, June.
    2. Qiu, Larry D. & Spencer, Barbara J., 2002. "Keiretsu and relationship-specific investment: implications for market-opening trade policy," Journal of International Economics, Elsevier, vol. 58(1), pages 49-79, October.
    3. Lee Branstetter & Mariko Sakakibara, 1998. "Japanese Research Consortia: A Microeconometric Analysis of Industrial Policy," Journal of Industrial Economics, Wiley Blackwell, vol. 46(2), pages 207-233, June.
    4. Yamawaki, Hideki, 1989. "A Comparative Analysis of Intertemporal Behavior of Profits: Japan and the United States," Journal of Industrial Economics, Wiley Blackwell, vol. 37(4), pages 389-409, June.
    5. Wilson A. Alley, 1997. "Partial Ownership Arrangements and Collusion in the Automobile Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 45(2), pages 191-205, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bárcena-Ruiz, Juan Carlos & Campo, María Luz, 2012. "Partial cross-ownership and strategic environmental policy," Resource and Energy Economics, Elsevier, vol. 34(2), pages 198-210.
    2. Hassan Benchekroun & Miao Dai & Ngo Van Long, 2020. "On the Profitability of Cross-Ownership in Cournot Oligopolies: Stock Sizes Matter," CIRANO Working Papers 2020s-43, CIRANO.
    3. Bárcena-Ruiz, Juan Carlos & Campo, María Luz, 2017. "Taxes versus standards under cross-ownership," Resource and Energy Economics, Elsevier, vol. 50(C), pages 36-50.
    4. Kiriti Kanjilal & Félix Muñoz-García, 2021. "Common Pool Resources with Endogenous Equity Shares," Strategic Behavior and the Environment, now publishers, vol. 9(1-2), pages 103-143, July.
    5. Panagiotis N. Fotis & Michael L. Polemis & Konstantinos Eleftheriou, 2017. "Unilateral effects of partial acquisitions: consistent calculation of GUPPI under horizontal merger guidelines within the EU," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 44(3), pages 315-325, September.
    6. Dong, Quan & Chang, Yang-Ming, 2020. "Emission taxes vs. environmental standards under partial ownership arrangements," Research in Economics, Elsevier, vol. 74(3), pages 250-262.
    7. Leheyda, Nina, 2008. "Geographical and Multi-product Linkages of Markets: Impact on Firm Equilibrium Interactions (Some Evidence from the European Car Market)," ZEW Discussion Papers 08-119, ZEW - Leibniz Centre for European Economic Research.
    8. Fanti, Luciano, 2016. "Social welfare and cross-ownership in a vertical industry: When the mode of competition matters for antitrust policy," Japan and the World Economy, Elsevier, vol. 37, pages 8-16.
    9. Arghya Ghosh & Hodaka Morita, 2017. "Knowledge transfer and partial equity ownership," RAND Journal of Economics, RAND Corporation, vol. 48(4), pages 1044-1067, December.
    10. Fanti, Luciano & Buccella, Domenico, 2016. "Passive unilateral cross-ownership and strategic trade policy," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 10, pages 1-22.
    11. Zevgolis Nikolaos E. & Fotis Panagiotis N., 2019. "A Rule of Reason Approach for Passive Minority Interests within the European Union," Review of Law & Economics, De Gruyter, vol. 15(3), pages 1-41, November.
    12. Bárcena-Ruiz, Juan Carlos & Sagasta, Amagoia, 2021. "Environmental policies with consumer-friendly firms and cross-ownership," Economic Modelling, Elsevier, vol. 103(C).
    13. Kanjilal Kiriti & Muñoz-García Félix, 2020. "Endogenous Equity Shares in Cournot Competition: Welfare Analysis and Policy," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(1), pages 1-21, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Leheyda, Nina, 2008. "Market Power, Multimarket Contact and Pricing: Some Evidence from the US Automobile Market," ZEW Discussion Papers 08-118, ZEW - Leibniz Centre for European Economic Research.
    2. Sakakibara, Mariko, 1997. "Evaluating government-sponsored R&D consortia in Japan: who benefits and how?," Research Policy, Elsevier, vol. 26(4-5), pages 447-473, December.
    3. Fanti, Luciano, 2013. "Cross-ownership and unions in a Cournot duopoly: When profits reduce with horizontal product differentiation," Japan and the World Economy, Elsevier, vol. 27(C), pages 34-40.
    4. Alessandra Catozzella & Marco Vivarelli, 2016. "The possible adverse impact of innovation subsidies: some evidence from Italy," International Entrepreneurship and Management Journal, Springer, vol. 12(2), pages 351-368, June.
    5. Azzeddine Azzam & David Rosenbaum, 2001. "Differential efficiency, market structure and price," Applied Economics, Taylor & Francis Journals, vol. 33(10), pages 1351-1357.
    6. Juan Carlos Bárcena‐Ruiz & Amagoia Sagasta, 2021. "Cross‐ownership and corporate social responsibility," Manchester School, University of Manchester, vol. 89(4), pages 367-384, July.
    7. Richard J. Arend & Moren Lévesque, 2010. "Is the Resource-Based View a Practical Organizational Theory?," Organization Science, INFORMS, vol. 21(4), pages 913-930, August.
    8. Reuben Soto, Sergio, 2021. "Capitalist racionality and economic principle," Revista de Ciencias Económicas, Instituto de Investigaciones en Ciencias Económicas, Universidad de Costa Rica, vol. 39(1), January.
    9. Schmalensee, Richard., 1985. "Testing the differential efficiency hypothesis," Working papers 1628-85., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    10. Dominique Guellec & Bruno Van Pottelsberghe de la Potterie, 2004. "From R&D to Productivity Growth: Do the Institutional Settings and the Source of Funds of R&D Matter?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 66(3), pages 353-378, July.
    11. Sameeksha Desai & Johan E. Eklund & Emma Lappi, 2020. "Entry Regulation and Persistence of Profits in Incumbent Firms," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(3), pages 537-558, November.
    12. Kokko, Ari & Tingvall, Patrik Gustavsson & Videnord, Josefin, 2015. "The growth effects of R&D spending in the EU: A meta-analysis," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 9, pages 1-26.
    13. Chrysovalantou Milliou & Joel Sandonis, 2016. "Vertical Foreign Direct Investment: Make, Sell and (Not) Buy," CESifo Working Paper Series 6190, CESifo.
    14. Schmalensee, Richard L., 1987. "Empirical studies of rivalrous behavior," Working papers 1990-87., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    15. Giuseppe Calignano & Rune Dahl Fitjar, 2017. "Strengthening relationships in clusters: How effective is an indirect policy measure carried out in a peripheral technology district?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(1), pages 139-169, July.
    16. Chen, Jiguang & Hu, Qiying & Song, Jing-Sheng, 2017. "Effect of partial cross ownership on supply chain performance," European Journal of Operational Research, Elsevier, vol. 258(2), pages 525-536.
    17. repec:wsr:wpaper:y:2010:i:062 is not listed on IDEAS
    18. Dermot Leahy & Catia Montagna, 2011. "Economising, Strategising and the Decision to Outsource," Discussion Papers 11/17, University of Nottingham, GEP.
    19. José Sousa & Xavier Fairise, 2014. "On the value of partial commitment for cooperative investment in buyer–supplier relationship," Journal of Economics, Springer, vol. 111(2), pages 151-171, March.
    20. Meilin Ma & Tina L. Saitone & Richard J. Volpe & Richard J. Sexton & Michelle Saksena, 2019. "Market Concentration, Market Shares, and Retail Food Prices: Evidence from the U.S. Women, Infants, and Children Program," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(3), pages 542-562, September.
    21. Stolpe, Michael, 2001. "Mobility of research workers and knowledge diffusion as evidenced in patent data: the case of liquid crystal display technology," Kiel Working Papers 1038, Kiel Institute for the World Economy (IfW Kiel).

    More about this item

    JEL classification:

    • L0 - Industrial Organization - - General
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:recsxx:v:7:y:2004:i:2:p:355-367. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/recs .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.