CHANGES IN DEMAND FUNCTION IN COURNOT OLIGOPOLY

Abstract.  The effects of change in the market (inverse) demand function are systematically analysed for Cournot oligopoly without product differentiation. The general comparative-static results are stated using the original data on firms' cost functions and inverse demand function. Three special models are examined in light of our results. The stability condition is shown to be insufficient for determinate comparative statics.     

Efficiency and the quality of management and care: evidence from Japanese public hospitals

We study how the quality of hospital management and medical care both affect efficiency in Japanese local public hospitals. The efficiency is estimated by a stochastic frontier analysis (SFA) and is regressed against the quality scores in hospital accreditation by the Japan Council for Quality Health Care (JCQHC). We find that rule-based hospital management relates to high efficiency, while the suitable management of beds and supplies relates to low efficiency.     

Functionality development dynamism in a diffusion trajectory: A case of Japan's mobile phones development

While it is generally accepted that Information Technology (IT) has a self-propagating function which ensures that the more widespread its use, the greater its functionality, its emerging dynamism remains a black box.This paper attempts to shed some light on this dynamism through utilizing monthly trend data for the number of Japan's mobile phone subscribers over the last 12 years. A bi-logistic growth model demonstrating the diffusion trajectory initiated by both generations of mobile phones was constructed, with the goal of identifying the increase in the functionality development in the transition from traditional mobile phones with a simple communication function (1st wave mobile phone) to mobile phones with an Internet protocol function (2nd wave mobile phone).Through an empirical analysis utilizing the bi-logistic growth model, it was determined that the 2nd wave mobile phone emerged at an earlier stage of diffusion trajectory than the 1st stage mobile phone, which enabled a sustainable functionality development in Japan's mobile phones over the decade.Factors governing a dramatic decrease in mobile phones prices were analyzed, utilizing the result of the measurement of functionality development. This led to the discovery that while an increase in functionality development enhanced the price of mobile phones, this increase accelerated self-propagating diffusion, thereby enabling a dramatic reduction in prices through the effects of learning exercise and economies of scale.Based on the foregoing findings, the driving forces of self-propagating functionality development were analyzed, and it was determined that effective utilization of potential resources in innovation (e.g., assimilation of spillover technology and learning effects) is the key driving forces behind self-propagating functionality development.     

DOES DEFLATION IMPINGE ON A GOVERNMENT'S FISCAL STANDING?

This paper uses a dynamic general equilibrium model with money to investigate theoretically under what conditions deflation impinges on a government's fiscal standing. Focus is placed on an upper bound that is compatible with a no Ponzie game condition for the government and an equilibrium. A comparative dynamics analysis demonstrates that if a government's fiscal deficit is not so high, deflation has a negative impact on the upper bound, while if a government's fiscal deficit exceeds a critical level, deflation rather improves it. The critical level depends on a time stream of disposable real incomes and a preference parameter.     

Convergence and Overtaking in a Dynamic two Country Model

In two-sector infinite-horizon trade models with factor–price-equalization, convergence of aggregate capital-labor ratios and incomes does not occur because the Euler equations imply equal growth rate of consumption in all economies. In a two-country dynamic specific factors model, we show that factor–price-equalization occurs only in the long run. Per capita incomes and consumptions do not necessarily converge. These depend on the endowments of the primary factors. Depending on these endowments, an initially poorer economy may end up as the richer economy in the steady state, overtaking the initially richer one.     

Impacts of Foreign Exchange Auctions on the Informal Market Rate in Myanmar

Since the abolition of the official peg and the introduction of a managed float in April 2012, the Central Bank of Myanmar has operated the daily auctions of foreign exchange aimed at smoothing exchange rate fluctuations. Despite the reforms, however, informal trading of foreign exchange remains pervasive. Using the daily informal exchange rate and Central Bank auction data, this study examines the impacts of auctions on the informal rate. Generalized autoregressive conditional heteroskedasticity models indicate that the auctions did not reduce the conditional variance of the informal rate returns. Overall, the auctions have only a quite modest impact on the informal exchange rate.     

On the stability of the stackelberg oligopoly equilibrium

The stability of the equilibrium in the Stackelberg undifferentiated oligopoly model where each oligopolist strives for leadership is analyzed for general demand and cost functions and for a discrete system with non-instantaneous adjustment.