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Welfare Improving Collusion In The Japanese Pork Import Market

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  • Fabiosa, Jacinto F.

Abstract

Underlying parameter estimates suggest that reduction in pork exporters' profit is three times higher when the Japanese GATT safeguard is invoked, providing incentive to foreign suppliers to collude to avoid exceeding the trigger. This collusion is welfare-improving since the safeguard induces more inefficiencies. Workable and efficient allocation rules are constructed with a multi-plant monopolist structure that allows trade of quota.

Suggested Citation

  • Fabiosa, Jacinto F., 1999. "Welfare Improving Collusion In The Japanese Pork Import Market," 1999 Annual meeting, August 8-11, Nashville, TN 21661, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea99:21661
    DOI: 10.22004/ag.econ.21661
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    References listed on IDEAS

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    1. Richard Green & Julian M. Alston, 1990. "Elasticities in AIDS Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 442-445.
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    1. Fabiosa, Jacinto F. & Ukhova, Yekaterina S., 2000. "New Aggregate And Source Specific Pork Import Demand Elasticity For Japan: Implications To U.S. Exports," 2000 Annual meeting, July 30-August 2, Tampa, FL 21743, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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