Content Protection and Oligopolistic Interactions

42 Pages Posted: 27 Apr 2000 Last revised: 17 Jul 2010

See all articles by Kala Krishna

Kala Krishna

Pennsylvania State University - Department of Economics; National Bureau of Economic Research (NBER)

Motoshige Itoh

University of Tokyo - Faculty of Economics; National Bureau of Economic Research (NBER)

Date Written: February 1986

Abstract

In oligopolistic situations content protection can have unexpected effects as it changes the nature of interactions between input suppliers. With a duoply, it does so in a manner that makes the foreign firm wish to match price increases and decreases of the domestic firm. Domestic input suppliers can therefore lose from such policies, even when set at free trade levels. The relation between input demands, the form of protection, and the degree of substitution between inputs is shown to define the effects of content protection and to provide the basis for understanding who might lobby for protection in different environments.

Suggested Citation

Krishna, Kala and Itoh, Motoshige, Content Protection and Oligopolistic Interactions (February 1986). NBER Working Paper No. w1843, Available at SSRN: https://ssrn.com/abstract=227170

Kala Krishna (Contact Author)

Pennsylvania State University - Department of Economics ( email )

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Motoshige Itoh

University of Tokyo - Faculty of Economics ( email )

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Japan

National Bureau of Economic Research (NBER)

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