This page offers the latest information about workshop series by WINPEC (Waseda Institute of Political Economy).

Empirical Microeconomics

Naoki Wakamori (University of Tokyo)

Oct. 29 2020
Title The Welfare Consequences of Free Entry in Vertical Relationships: The Case of the MRI Market
Date October 29, 2020 (Thursday) 16:30-18:00
Location via Zoom
Abstract This paper considers policy design in markets with vertical relationships by studying how upstream competition affects downstream entry and social welfare in the context of MRI adoption. We build and estimate a model where MRI manufacturers sell MRIs in the upstream market, whereas medical institutions purchase MRIs to provide medical services to patients in the downstream market. Simulation results suggest that the current free-entry policy in Japan leads to excess MRI adoption. Regulating medical institutions’ MRI adoption, taxing MRI purchases, or softening competition among MRI manufacturers would increase social welfare substantially by mitigating the business-stealing effect in the downstream market.
Paper Paper File
Slide
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