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AA00260492-20050001-0115.pdf
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Download
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:2.0 MB
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| Last updated |
:Dec 16, 2009 |
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Total downloads since Dec 16, 2009 : 1731
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| Title |
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Network externalities, lexicographic demand shifts, and marginal cost dumping
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矢野, 誠
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ヤノ, マコト
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Yano, Makoto
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Faculty of Economics, Keio University, Tokyo, Japan
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Dei, Fumio
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デイ, フジオ
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Dei, Fumio
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Graduate School of Business Administration, Kobe University, Kobe, Japan
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Keio Economic Society, Keio University
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2005
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Keio economic studies
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42
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1/2
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2005
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115
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130
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| Abstract |
In many cases, dumping involves a massive demand shift from domestic products to competing foreign products that are newly introduced to the domestic market. This study presents a new way of modelling such a demand shift relating to network externalities and demonstrates that the monopolistic supplier of a new product may sell at a price below the marginal cost. This result provides a new explanation for what may be called marginal cost dumping.
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Special issue in honor of Prpfessor Michihiro Ohyama
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