Do Transport Costs Change Organizational Form under Two-way Trade Market?

• 영문명: Do Transport Costs Change Organizational Form under Two-way Trade Market?
• 발행기관: 한국계량경제학회
• 저자명: Ki-Dong Lee Kangsik Choi
• 간행물 정보: 『JOURNAL OF ECONOMIC THEORY AND ECONOMETRICS』Vol.34 No.1, 44~83쪽, 전체 40쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2023.03.30

영문 초록

Focusing on the asymmetric freight rates associated with backhaul problem, we analyze firms’ choice of organizational form between the unitary form (U-form) and the multidivisional form (M-form). With exogenous freight rates, choosing M-form is the dominant strategy even though collective choice of the U-form benefits both firms (prisoners’ dilemma situation). Allowing for endogenous freight rates results in asymmetric freight rates between port pairs due to trade imbalances. In this case, unlike previous studies, diverse types of organization form, i.e., both firms U-form, both firms M-form, and only one firm U-form, arise depending on the product substitutability and marginal cost of transport firm. In any case, the U-form is preferred to the M-form from the welfare perspective in the symmetric organizational forms between firms.

목차

1. INTRODUCTION

2. THE MODEL

3. MARKET EQUILIBRIUM UNDER BERTRAND COMPETITION

4. THE CHOICE OF ORGANIZATIONAL FORM WITH EXOGENOUS FREIGHT RATES

5. THE CHOICE OF ORGANIZATIONAL FORM WITH ENDOGENOUS FREIGHT RATES

6. CONCLUDING REMARKS

REFERENCES

키워드

Delegation M-form U-form transport costs trade