FDI may help rival firms

This paper presents a two-country model of duopolistic market with vertical relations which leads to a paradoxical result: when upstream firms possess sufficient bargaining power, cost-reducing FDI may actually enhance the rival firm's profit.

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Year of publication:	2005-11-15
Authors:	Ishida, Junichiro ; Matsushima, Noriaki
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 6.2005, 22, p. 1-8
Publisher:	AccessEcon
Subject:	Cournot competition

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Extent:	application/pdf
Type of publication:	Article
Classification:	F2 - International Factor Movements and International Business ; J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010630417