J-GLOBAL         Last updated: Mar 26, 2019 at 10:22
The University of Tokyo
Institute of Social Science
Job title
Dr of Economics(The University of Tokyo)
Research funding number

Research Areas


Academic & Professional Experience

Apr 2018
Professor, Instutute of Social Science, The University of Tokyo
Apr 1999
Mar 2018
Associate Professor, Institute of Social Science, The University of Tokyo
Apr 1996
Mar 1999
Associate Professor, Graduate School of Decision Science and Technology, Tokyo Institute of Technology
Tokyo Institute of Technology, Associate Professor
Apr 1994
Mar 1996
Research Associate, Institute of Social and Economic Research, Osaka University


Apr 1989
Mar 1994
Applied Economics, Graduate School of Economics, The University of Tokyo
Apr 1984
Mar 1986
Graduate School, Division of Economics, The University of Tokyo
Apr 1986
Mar 1988
Department of Economics, Faculty of Economics, The University of Tokyo

Awards & Honors

Jun 2016
Japan Association for Applied Economics Award 2015, Japan Association for Applied Economics
Sep 2014
GRASPP'S OUTSTANDING PROFESSOR AWARD 2013, Graduate School of Public Policy, The University of Tokyo

Published Papers

MATSUMURA Toshihiro and Atsushi Yamagishi
Economic Record   95(308) 81-89   Mar 2019   [Refereed]
We investigate public infrastructure investment that reduces production costs in oligopoly markets. The government decides on its public investment based on conventional cost–benefit analysis that considers the direct effect (the benefit estimated...
Kosuke Hirose, Toshihiro Matsumura
Journal of Economics   126(1) 1-19   Jan 2019   [Refereed]
We compare welfare and profits under price and quantity competition in Stackelberg mixed duopolies. Under public leadership, price competition always yields greater profits and welfare than quantity competition. By contrast, under private leadersh...
Susumu Sato, Toshihiro Matsumura
Manchester School   87(1) 37-59   Jan 2019   [Refereed]
This study formulates a two-period model of mixed oligopoly in which the government privatizes a state-owned public firm over multiple periods. We introduce the shadow cost of public funding (i.e., the excess burden of taxation). The government is...
Junichi Haraguchi, Toshihiro Matsumura
International Review of Economics and Finance   56 363-370   Jul 2018   [Refereed]
We discuss government-leading welfare-improving collusion in a mixed duopoly. We formulate an infinitely repeated game in which a welfare-maximizing firm and a profit-maximizing firm coexist. The government proposes welfare-improving collusion and...
Arthaniti: Journal of Economic Theory and Practice   17(1) 1-14   Jun 2018   [Refereed][Invited]
We discuss optimal privatization policies in mixed oligopolies in which a public firm is the Stackelberg follower (private leadership). We find that under constant marginal cost, the optimal degree of privatization is zero. When the marginal cost ...
Junichi Haraguchi, Toshihiro Matsumura, Shohei Yoshida
Japan and the World Economy   46 1-8   Jun 2018   [Refereed]
We formulate a mixed oligopoly model in which one state-owned public enterprise competes with n private firms in the same market and m private firms in the neighboring market. We investigate how n and m affect the optimal degree of privatization. ...
Ming Hsin Lin, Toshihiro Matsumura
Journal of Public Economic Theory   20 416-423   Jun 2018   [Refereed]
© 2018 Wiley Periodicals, Inc. The privatization neutrality theorem states that the share of public ownership in a firm does not affect welfare under an optimal uniform tax-subsidy policy. We revisit this neutrality result. First, we investigate t...
Seung Leul Kim, Sang Ho Lee, Toshihiro Matsumura
Asia-Pacific Journal of Accounting and Economics   25 433-448   May 2018   [Refereed]
© 2017 City University of Hong Kong and National Taiwan University. This article investigates the fixed-fee licensing contract in a mixed duopoly where public and private firms may purchase eco-technology from a foreign innovator. We show that the...
Sang Ho Lee, Toshihiro Matsumura, Susumu Sato
Journal of Economics   123(1) 71-88   Jan 2018   [Refereed]
© 2017, Springer-Verlag GmbH Austria. This study formulates a new model of mixed oligopolies in free entry markets. A state-owned public enterprise is established before the game, private enterprises enter the market, and then the government choos...
Toshihiro Matsumura, Akira Ogawa
Australian Economic Papers   56 304-327   Dec 2017   [Refereed]
We investigate endogenous timing in a mixed duopoly with a negative externality. We find that quantity (price) competition yields a simultaneous-move (sequential-move) outcome under a significant negative externality. These results indicate that m...
Toshihiro Matsumura, Akira Ogawa
Journal of Industry, Competition and Trade   17 387-398   Dec 2017   [Refereed]
© 2017, Springer Science+Business Media New York. We investigate endogenous timing in a mixed duopoly in a differentiated product market. We find that private leadership is better than public leadership from a social welfare perspective if the pri...
Toshihiro Matsumura, Atsushi Yamagishi
Journal of Regulatory Economics   52 63-76   Aug 2017   [Refereed]
We investigate a free-entry market in which incumbents lobby for regulatory changes that affect the cost for all firms equally. First, we investigate a model in which the lobbying affects marginal costs and incumbents produce before followers ente...
Lili Xu, Sang Ho Lee, Toshihiro Matsumura
International Review of Economics and Finance   50 1-7   Jul 2017   [Refereed]
© 2017 Elsevier Inc. This study investigates the impact of the timing of privatization and liberalization policies on the degree of privatization and number of entering firms in free-entry mixed markets. We formulate two models: ex-post privatizat...
Toshihiro Matsumura, Yasunori Okumura
B.E. Journal of Theoretical Economics   17(2) 1-9   Jun 2017   [Refereed]
© 2017 Walter de Gruyter GmbH, Berlin/Boston. It is known that if the number of entering firms is endogenous (free entry markets), privatization is not necessarily welfare neutral in mixed oligopolies under a uniform production subsidy policy. We ...
Toshihiro Matsumura, Atsushi Yamagishi
Economics Letters   154 64-68   May 2017   [Refereed]
© 2017 Elsevier B.V. We investigate the long-run effect of energy conservation regulation, which forces firms to raise energy-saving investment above the cost-minimizing level. If Pigovian tax is imposed, additional regulation always harms social ...
Kosuke Hirose, Sang Ho Lee, Toshihiro Matsumura
Economics Bulletin   37 214-221   Jan 2017   [Refereed]
We consider a model in which two firms choose whether to adopt environmental corporate social responsibility policies and then face Stackelberg competition under price competition. We show that the first-mover has the advantage, which is in contra...
Kosuke Hirose, Toshihiro Matsumura
Asia-Pacific Journal of Accounting and Economics   23 256-267   Jul 2016   [Refereed][Invited]
We solve the multi-store paradox by introducing interdependent payoffs between the firms. We show that firms set up multiple stores unless the degree of payoff interdependence is low. We also show that multiple equilibria, namely intertwined and n...
Junichi Haraguchi, Toshihiro Matsumura
Journal of Economics   117(2) 117-136   Mar 2016   [Refereed]
© 2015, Springer-Verlag Wien. We revisit the classic discussion comparing price and quantity competition, but in a mixed oligopoly in which one state-owned public firm competes against private firms. It has been shown that in a mixed duopoly, pric...
Toshihiro Matsumura, Akira Ogawa
Economics Bulletin   36 2117-2127   Jan 2016   [Refereed]
We assume that firms care about corporate social responsibility (CSR) and revisit the endogenous choice between price and quantity contracts. We find that a significant (insignificant) asymmetric weight of CSR in their objectives yields Bertrand (...
Hiroaki Ino, Toshihiro Matsumura
B.E. Journal of Theoretical Economics   16 243-265   Jan 2016   [Refereed]
We investigate a Stackelberg oligopoly model in which m leaders and N-m followers compete. We find an important welfare effect that relates to antimonopoly policies when we move from the Cournot model (m= N) to the Stackelberg model: Exchanging a ...
Toshihiro Matsumura, Noriaki Matsushima
Journal of Economics and Management Strategy   24(4) 887-903   Dec 2015   [Refereed]
This paper theoretically considers a duopoly model in which all firms do not always employ personalized pricing. Our model incorporates the fact that firms engage in marginal cost-reducing activities after they decide whether to employ personalize...
Toshihiro Matsumura, Makoto Okamura
Journal of Economics   116(2) 137-150   Oct 2015   [Refereed]
© 2015, Springer-Verlag Wien. We investigate the relationship between competition and privatization policies. Existing studies measure the strength of competition based on the number of firms, and show that the optimal degree of privatization is h...
Toshihiro Matsumura, Yoshihiro Tomaru
Southern Economic Journal   82(2) 416-429   Oct 2015   [Refereed]
© 2015 by the Southern Economic Association. We examine the relationship between equilibrium and efficient levels of product differentiation in a mixed duopoly, where a welfare-maximizing public enterprise competes with a profitmaximizing private ...
Toshihiro Matsumura, Daisuke Shimizu
Bulletin of Economic Research   67 1-13   Jan 2015   [Refereed]
© 2015 Board of Trustees of the Bulletin of Economic Research and John Wiley & Sons Ltd. We investigate the flexible manufacturing system (FMS) by using the spatial price discrimination framework of Pal. The degree of flexibility when producing ...
Susumu Cato, Toshihiro Matsumura
Economic Record   91 309-323   Jan 2015   [Refereed]
© 2015 Economic Society of Australia. This study investigates the short-run and long-run relationships of trade and privatisation policies. In both the short run and the long run, the optimal degree of privatisation is increasing in the import tar...
Toshihiro Matsumura, Akira Ogawa
Southern Economic Journal   81 457-473   Oct 2014   [Refereed]
© 2014 Southern Economic Association. We revisit an endogenous timing game by introducing corporate social responsibility into firms' payoffs. Previous research investigates an endogenous timing game in a mixed oligopoly, wherein one welfare-maxim...
Junichi Haraguchi, Toshihiro Matsumura
Research in Economics   68 338-353   Jan 2014   [Refereed]
© 2014 University of Venice. We characterize the endogenous competition structure (in prices or quantities) in a differentiated duopoly between a public firm that maximizes domestic welfare and a private firm that can be owned by domestic or forei...
Toshihiro Matsumura, Yasunori Okumura
Journal of Economics/ Zeitschrift fur Nationalokonomie   113 125-132   Jan 2014   [Refereed]
© 2013, Springer-Verlag Wien. We revisit the classic discussion of the comparison between tax and quota, but in a free-entry Cournot oligopoly. We investigate a quantity ceiling regulation as a quota policy. We find that tariff-quota equivalence h...
Minoru Kitahara, Toshihiro Matsumura
Manchester School   81 730-744   Sep 2013   [Refereed]
We examine the relationship between the equilibrium price and the degree of product differentiation in a mixed duopoly in which a welfare-maximizing public enterprise competes against a profit-maximizing private firm. Existing works on private eco...
Susumu Cato, Toshihiro Matsumura
FinanzArchiv   69 215-240   Jun 2013   [Refereed]
The purpose of this paper is to provide a systematic treatment of tax policies in mixed markets with endogenous entry. We consider three types of tax-subsidy policies: a simple unit subsidy, an entry-license tax, and a policy mixture of the two in...
Toshihiro Matsumura, Takeaki Sunada
Economics Letters   119 183-185   May 2013   [Refereed]
We investigate a mixed oligopoly with misleading advertising competition. We find that, a welfare-maximizing public enterprise always engages in misleading advertising and that, an increase in the number of firms increases the profit and advertisi...
Toshihiro Matsumura, Yoshihiro Tomaru
Canadian Journal of Economics   46 526-554   May 2013   [Refereed]
We investigate optimal tax-subsidy policies in mixed and private oligopolies with excess burden of taxation. We compare the optimal subsidies and the resulting welfare levels among four regimes: mixed and private Cournot duopolies and Stackelberg ...
Susumu Cato, Toshihiro Matsumura
Economics Letters   119 11-13   Apr 2013   [Refereed]
This paper investigates how horizontal mergers affect the optimal entry barrier (tax) in the presence of free entry and exit. We show that the government should raise the entry tax when a merger reduces the total number of firms entering. © 2013 E...
Toshihiro Matsumura, Noriaki Matsushima, Susumu Cato
Economic Modelling   31 541-547   Mar 2013   [Refereed]
This paper formulates a duopoly model of firms concerned with relative profits as well as their own profits and investigates the relationship between the degree of competitiveness in a market and R&D expenditure. We find a non-monotone relationshi...
Toshihiro Matsumura, Yasunori Okumura
Economics Letters   118 324-326   Feb 2013   [Refereed]
Fjell and Heywood (2004) show that privatization is not necessarily welfare neutral in mixed oligopolies under a production subsidy if firms move sequentially. We find that the neutrality holds for any time structure if instead an output floor is ...
Toshihiro Matsumura, Noriaki Matsushima
Japanese Economic Review   63(4) 431-450   Dec 2012   [Refereed]
We provide a simple theoretical model to explain the mechanism whereby the privatization of international airports can improve welfare. The model consists of a downstream (airline) duopoly with two inputs (landings at two airports) and two types o...
Toshihiro Matsumura, Noriaki Matsushima
Bulletin of Economic Research   64    Dec 2012   [Refereed]
We investigate the relationship between the degree of competition and the stability of collusive behaviour, by introducing the element of relative performance in the objective functions of the firms. We show that an increase in the degree of compe...
Hiroaki Ino, Toshihiro Matsumura
International Economic Review   53 1323-1340   Nov 2012   [Refereed]
This article investigates the relationship between the Herfindahl-Hirschman Index (HHI) and welfare in multiple-leader Stackelberg models. We formulate two long-run models of free entry of followers; in the first (second) model, leaders select the...
Susumu Cato, Toshihiro Matsumura
Journal of Institutional and Theoretical Economics   168 444-454   Sep 2012   [Refereed]
This paper investigates the long-run effect of foreign penetration in product markets on privatization policies. We find that the optimal degree of privatization is increasing in foreign penetration. This result is in sharp contrast to the existin...
Ming Hsin Lin, Toshihiro Matsumura
Journal of Economics   107 71-80   Sep 2012   [Refereed]
This paper investigates how the presence of foreign investors in privatized firms affects privatization policy in a mixed oligopoly. We find that an increase in the stockholding ratio of foreign investors in a privatized firm increases the optimal...
Toshihiro Matsumura, Akira Ogawa
Economics Letters   116 174-177   Aug 2012   [Refereed]
We revisit the classic discussion of the endogenous choice of a price or a quantity contract, but in a mixed duopoly. We find that choosing the price contract is a dominant strategy for both firms, whether the goods are substitutes or complements....
Toshihiro Matsumura, Noriaki Matsushima
Journal of Regional Science   52(3) 420-432   Aug 2012   [Refereed]
We investigate the effects of restricting the locations of firms in Hotelling duopoly models. In standard location-price models, the equilibrium distance between firms is too great from the viewpoint of consumer welfare. Thus, restricting the loca...
Toshihiro Matsumura, Noriaki Matsushima
Economics Letters   115(1) 465-468   Jun 2012   [Refereed]
In linear-city models, if firms are allowed (not allowed) to locate outside the linear city, they engage in excessive (insufficient) R&D investments from the normative viewpoint. This implies that the feasible set of locations drastically affects ...
Toshihiro Matsumura, Yoshihiro Tomaru
Japanese Economic Review   63 244-258   Jun 2012   [Refereed]
We investigate the relations among market structure, privatization, and tax-subsidy policies. We find that if there is no foreign competitor, privatization does not matter under the optimal tax-subsidy policy regardless of the number of firms. How...
Toshihiro Matsumura
Economics Letters   115(1) 94-96   Apr 2012   [Refereed]
I investigate an asymmetric duopoly where a public enterprise must supply the demand it faces, while a private enterprise has no such obligation. I show that such an asymmetric regulation yields the first-best outcome (Walrasian equilibrium). © 20...
Toshihiro Matsumura, Noriaki Matsushima
Annals of Regional Science   48 33-44   Feb 2012   [Refereed]
We reconsider a Cournot spatial competition in a circular city. We discuss an oligopoly model. We find that two equilibria exist if the transport cost function is nonlinear in distance, while a continuum of equilibria exists if it is linear. Thus,...
Daisuke Hirata, Toshihiro Matsumura
Journal of Economics   104(3) 199-217   Nov 2011   [Refereed]
The present paper reexamines the price-setting Stackelberg duopoly with asymmetric and strictly convex cost functions in a homogeneous product market. It demonstrates that in a generic environment, the higher-cost firm is likely to be the price le...
Junichiro Ishida, Toshihiro Matsumura, Noriaki Matsushima
Journal of Industrial Economics   59(3) 484-505   Sep 2011   [Refereed]
We investigate a Cournot model with strategic R&D investments wherein efficient low-cost firms compete against less efficient high-cost firms. We find that an increase in the number of high-cost firms can stimulate R&D by the low-cost firms, while...
Takeshi Ebina, Toshihiro Matsumura, Daisuke Shimizu
Papers in Regional Science   90 613-628   Aug 2011   [Refereed]
We investigate equilibrium locations of a spatial Cournot competition model that includes both circular city and linear city models as special cases. We find that the equilibrium location is discontinuous with respect to parameter β (β= 0 implies ...
Toshihiro Matsumura, Noriaki Matsushima
Games and Economic Behavior   72(1) 306-313   May 2011   [Refereed]
Jehiel (1992) and Friedman and Thisse (1993) show that spatial agglomeration appears in a standard two-stage location price model if symmetric firms collude in prices. We introduce a cost difference between two firms. We show that agglomeration ne...
Toshihiro Matsumura, Takeshi Murooka, Akira Ogawa
Operations Research Letters   39 115-117   Mar 2011   [Refereed]
We investigate a two-player action commitment game where one simultaneous-move and two sequential-move pure strategy equilibria exist when the cost of leading is zero, while the simultaneous-move outcome is not an equilibrium when the leading cost...
Toshihiro Matsumura and Daisuke Shimizu
Manchester School   78(6) 609-625   Dec 2010   [Refereed]
We investigate a mixed economy where state-owned public enterprises compete against private firms. We examine sequential privatization of public enterprises, and find that under plausible assumptions one privatization increases the welfare gains o...
Daisuke Hirata and Toshihiro Matsumura
Operations Research Letters   38(6) 533-535   Nov 2010   [Refereed]
We introduce product differentiation in the model of price competition with strictly convex costs in which firms have to supply all of the forthcoming demand. We find that although a continuum of equilibria exists in a homogeneous product market, ...
Journal of Economics
Hiroaki Ino and Toshihiro Matsumura   101(3) 213-230   Nov 2010   [Refereed]
We investigate a desirable role of public enterprise in mixed oligopoly in free-entry markets. We compare the following three cases: (a) a public firm produces before private firms (public leadership), (b) all firms produce simultaneously (Cournot...
Toshihiro Matsumura, Noriaki Matsushima
B.E. Journal of Economic Analysis and Policy   10(1) 1-42   Sep 2010   [Refereed]
This paper investigates an asymmetric duopoly model with R and D competition and product positioning. We find that an inefficient (small) firm may engage in R and D more intensively than an efficient (large) firm in spite of economies of scale in ...
Noriaki Matsushima and Toshihiro Matsumura
Open Economic Review   21(3) 433-447   Jul 2010   [Refereed]
We investigate competition between a domestic intellectual property right holder and a foreign imitator and consider how parallel imports affect their profits. We consider a two-country model. Country A is a developed country where intellectual pr...
Toshihiro Matsumura, Akira Ogawa
Australian Economic Papers   49 149-160   Jun 2010
We investigate a mixed duopoly where a state-owned public enterprise competes against a profit-maximising private enterprise. We analyse whether private leadership or public leadership is robust in the observable delay game. We find that private l...
Toshihiro Matsumura, Noriaki Matsushima, and Giorgos Stamatopoulos
Journal of Economics   99(3) 267-276   Apr 2010   [Refereed]
It is known that if exogenous cost heterogeneities between the firms in a spatial duopoly model are large, then the model does not have a pure-strategy equilibrium in location choices. It is also known that when these heterogeneities are stochasti...
Takeshi Ebina, Toshihiro Matsumura and Daisuke Shimizu
Economics Bulletin   29(4) 2722-2729   Dec 2009   [Refereed]
We apply a spatial model that includes both circular-city and linear-city models as special cases to the analysis of location-quantity model in mixed oligopoly. We find that the equilibrium pattern continuously moves from that of the circular-city...
Toshihiro Matsumura and Daisuke Shimizu
Economics Bulletin   29(2) 760-768   Dec 2009   [Refereed]
We investigate the equilibrium location pattern and welfare implication in delivered pricing model (or spatial price discrimination model) with a linear city. First, we extend a delivered pricing duopoly with Bertrand competition of Hamilton et al...
Toshihiro Matsumura, Noriaki Matsushima, and Ikuo Ishibashi
Journal of Economics   98(3) 203-219   Nov 2009   [Refereed]
We investigate whether or not privatization is beneficial from the viewpoint of social welfare in a monopolistic competition model. We discuss the relationship between the welfare effects of privatization and the degree of foreign direct investmen...
Toshihiro Matsumura and Akira Ogawa
Journal of Economics   97(3) 265-272   Jul 2009   [Refereed]
We examine whether the payoff dominant sequential-move (Stackelberg) outcome is realized when timing is endogenized. We adopt the observable delay game formulated by Hamilton and Slutsky [Games Econ Behav 2(1):29-46, 1990]. We find that if one seq...
Toshihiro Matsumura and Noriaki Matsushima
Annals of Regional Science   43(1) 215-234   Jan 2009   [Refereed]
We introduce heterogeneity of production costs into the location-price Hotelling model discussed by d'Aspremont et al. (Econometrica 47:1145-1150, 1979). Maximum differentiation appears if the cost difference between two firms is small, whereas no...
Minoru Kitahara and Toshihiro Matsumura
Australian Economic Papers   47(4) 389-395   Dec 2008   [Refereed]
We investigate a model where two firms choose whether to acquire information on a common competitor. We find that strategic complementarity on information acquisition exists, yielding multiple equilibria. In addition, we investigate welfare implic...
Toshihiro Matsumura, Daisuke Shimizu
Japanese Economic Review   59(4) 498-518   Nov 2008   [Refereed]
The mixed strategy equilibria in a location quantity duopoly model with circular markets are investigated. We find that a continuum of equilibria exists when the transport cost function is linear. However, if costs are strictly concave or convex, ...
Toshihiro Matsumura, Noriaki Matsushima
Economics Letters   96(2) 161-167   Aug 2007   [Refereed]
We investigate optimal quality provision, where quality is determined by congestion. Duopolists make congestion-reducing investments and then compete in prices. We find that an unregulated market leads to insufficient investment, and that price ca...
Toshihiro Matsumura, Daisuke Shimizu
Papers in Regional Science   85(4) 585-598   Nov 2006   [Refereed]
We investigate two shipping (delivered pricing) duopoly models with circular markets, Cournot and Bertrand. In the Cournot model, maximal distance between two firms becomes the unique equilibrium outcome if transport cost is increasing with distan...
Noriaki Matsushima, Toshihiro Matsumura
Regional Science and Urban Economics   36(6) 753-772   Nov 2006   [Refereed]
We investigate a mixed market in which a state-owned, welfare-maximizing public firm competes against n domestic private firms and m foreign private firms which are all profit-maximizing. A circular city model with quantity-setting competition is ...
Minoru Kitahara, Toshihiro Matsumura
Journal of Economics   89(1) 75-82   Oct 2006   [Refereed]
We investigate how unit (or specific) tax and ad valorem tax affect equilibrium location choice in a model of product differentiation, which includes Hotelling (linear-city) and Vickrey-Salop (circular-city) spatial models as special cases. We fin...
Minoru Kitahara, Toshihiro Matsumura
Japanese Economic Review   57(3) 438-448   Sep 2006   [Refereed]
We discuss stochastic cost-reducing R&D investments and examine efficient subsidies. We discuss a two-stage duopoly model in which each firm chooses R&D levels (innovation size and probability of success) in the first stage and competes ? la Courn...
Toshihiro Matsumura, Makoto Okamura
International Journal of Industrial Organization   24(5) 1071-1076   Sep 2006   [Refereed]
Vickrey [Vickrey, W.S., 1964. Microstatics, Harcourt, Brace and World, New York] shows that the number of firms entering is excessive in his circle model of product differentiation. We broaden his result to a large class of transport and productio...
Ikuo Ishibashi, Toshihiro Matsumura
European Economic Review   50(6) 1347-1366   Aug 2006   [Refereed]
We investigate a mixed market where a welfare-maximizing public research institute competes against profit-maximizing private firms. We investigate R&D competition by using a standard model of patent races where each firm chooses both its innovati...
Toshihiro Matsumura, Makoto Okamura
Economics Letters   90(3) 396-401   Mar 2006   [Refereed]
We examine welfare implications of the equilibrium number of entering firms in a spatial price discrimination model. In contrast to Salop [Salop, S., 1979. Monopolistic competition with outside goods. Bell Journal of Economics 10, 141-156.], the e...
Toshihiro Matsumura, Noriaki Matsushima
Journal of Economics   86(3) 259-292   Dec 2005   [Refereed]
Using the spatial price discrimination framework, the relationship between the locations of firms and their ability to collude is investigated. Gupta and Venkatu (2002) show that in a duopoly model agglomeration at one point is the most stable loc...
Toshihiro Matsumura, Daisuke Shimizu
Regional Science and Urban Economics   35(6) 658-670   Nov 2005   [Refereed]
We investigated welfare implications in location-quantity models in a symmetric linear city. We found that when firms are not agglomerated in equilibrium, increasing the distance between firms raises (reduces) producer surplus and social welfare (...
Toshihiro Matsumura, Daisuke Shimizu
Economics Letters   89(1) 112-119   Oct 2005   [Refereed]
We investigate two delivered pricing models. We find that in the Bertrand (Cournot) model the equilibrium distance between two firms' locations is too large (small) for maximum social welfare, while it is too small for maximum consumer surplus in ...
Toshihiro Matsumura, Osamu Kanda
Journal of Economics   84(1) 27-48   Feb 2005   [Refereed]
We investigate the optimal behavior of a public firm in a mixed market involving private firms and one public firm. Existing works show that welfare-maximizing behavior by the public firm is suboptimal when the number of firms is given exogenously...
Toshihiro Matsumura, Takao Ohkawa, Daisuke Shimizu
Southern Economic Journal   72(1) 224-235   Jan 2005   [Refereed]
We revisit works by Pal and Matsushima, which, respectively, present different equilibrium locations. We consider nonlinear transport costs and show that Pal's result (dispersion) is more robust than Matsushima's (partial agglomeration). Pal's res...
Toshihiro Matsumura
Australian Economic Papers   44(3) 269-274   2005   [Refereed]
We investigate the effects of infrastructure investments that reduce transport costs. We use a spatial
model of Salop (1979). It is well known that the number of firms is excessive at free-entry equilibrium
(excess entry theorem). We find that the...
Toshihiro Matsumura, Toshihiro Matsumura, Noriaki Matsushima, Noriaki Matsushima
Economica   71(284) 671-688   Nov 2004   [Refereed]
We investigate a mixed duopoly, where a state-owned welfare-maximizing public firm competes against a profit-maximizing private firm. We use a Hotelling-type spatial model which represents product differentiation. We endogenize production costs by...
Toshihiro Matsumura
Review of Development Economics   8(4) 583-596   Nov 2004   [Refereed]
The paper investigates a three-country duopoly model. Two developed countries have large markets and one developing country has a cost advantage. The author finds that strategic complementarity in location choice yields multiple equilibria. One is...
Toshihiro Matsumura
Economics Bulletin   12(1) 1-9   Dec 2003   [Refereed]
I introduce uncertainty into the model of strategic cost-reducing R and D investments and reexamine welfare implications. I discuss two models. In one model an increase in expenditure decreases production costs when R\Dsucceeds, and in the other m...
Daisuke Shimizu, Toshihiro Matsumura
Economics Bulletin   18(1) 1-9   Dec 2003   [Refereed]
This paper investigates a location-quantity model in a circular city. Pal (1998) investigates a duopoly model and finds that an equidistant location pattern appears in equilibrium. Matsushima (2001a) investigates an n-firm oligopoly model and show...
Toshihiro Matsumura
Canadian Journal of Economics   36(4) 1007-1025   Nov 2003   [Refereed]
I investigate the effect of exclusive territories, which are typical vertical controls imposed by upstream firms. Using shipping spatial models, I consider an industry that consists of many independent local markets. An upstream monopolist restric...
Noriaki Matsushima, Toshihiro Matsumura
Canadian Journal of Economics   36(1) 62-87   Feb 2003   [Refereed]
We investigate a mixed market where a state-owned welfare-maximizing public firm competes against profit-maximizing private firms. We use a circular city model with quantity-setting competition. In contrast to a pure market case discussed by Pal (...
Toshihiro Matsumura
Bulletin of Economic Research   55(3) 275-287   Jan 2003   [Refereed]
We investigate Stackelberg mixed duopoly models where a state-owned public firm and a foreign private firm compete. We examine a desirable role (either leader or follower) of the public firm. We also consider endogenous roles by adopting the obser...
Toshihiro Matsumura
Southern Economic Journal   70(2) 403-413   Jan 2003   [Refereed]
In this paper, I investigate endogenous roles in a mixed duopoly, where private and state-owned public firms compete, by allowing two production periods. I find that many equilibria exist, including the Cournot-type equilibrium and one Stackelberg...
Toshihiro Matsumura and Noriaki Matsushima
Australian Economic papers   42(1) 18-34   2003   [Refereed]
We investigate the sequential choice of location in a mixed duopoly, where a welfare-maximising public
firm competes against a profit-maximising private firm. We examine the desirable role of the public
firm in a mixed market. We also consider the...
Toshihiro Matsumura
Journal of Economics/ Zeitschrift fur Nationalokonomie   75(3) 199-210   Apr 2002   [Refereed]
If it is endogenously determined who takes the role of the leader and of the follower in a quantity-setting duopoly, an instability may arise as addressed by Stackelberg (1934). We formulate an m-period duopoly model with inventory costs, where ea...
Toshihiro Matsumura
Journal of Economics/ Zeitschrift fur Nationalokonomie   71(1) 47-58   Feb 2000   [Refereed]
This paper elaborates on Salop (1979) who showed that the number of firms at free-entry equilibrium is excessive from the viewpoint of social welfare (excess-entry theorem). This paper considers an integer problem of the number of firms entering t...
Toshihiro Matsumura
International Journal of Industrial Organization   17(2) 289-296   Feb 1999   [Refereed]
This paper investigates endogenous sequencing in a quantity-setting oligopoly. I formulate an n-firm, m-period model where each firm chooses both how much to produce and when to produce it. I find that at least n-1 firms simultaneously produce in ...
Toshihiro Matsumura
Australian Economic Papers   38(3) 189-202   1999   [Refereed]
This paper analyses a Cournot duopoly model with ®nitely repeated competition. Each ®rm is
allowed to hold inventories for a period. When there are more than two periods, inventory-holdings
encourage ®rms to take collusive actions. By holding larg...
Toshihiro Matsumura
Journal of Public Economics   70(3) 473-483   Dec 1998   [Refereed]
We investigate a quantity-setting duopoly involving a private firm and a privatized firm jointly owned by the public and private sectors. The private firm maximizes profits, while the privatized firm takes both profits and social welfare into cons...
Australian Economic Papers   37(2) 103-118   1998   [Refereed]
This paper investigates a two-stage price-setting duopoly with differentiated goods. First, each Ærmannounces its price; second, it chooses its actual price; and Ænally the market opens. Once a Ærmannounces a price, it is able to discount it but n...
Toshihiro Matsumura
Japanese Economic Review   48(1) 81-89   Jan 1997   [Refereed]
This paper analyses the Cournot duopoly model which has two production periods before the market clears. As shown by Saloner (1987), if inventory costs are zero, many outcomes including both Cournot and Stackelberg outcomes are subgame perfect equ...
Toshihiro Matsumura
Australian Economic Papers   36 1-13   1997   [Refereed]
This paper investigates a quantity-setting oligopoly model with endogenous timing. We formulate an n-firm two-period model. Each firm chooses whether to take its action in period 1 or take its action in period 2 after observing the first-period ac...
Toshihiro Matsumura, Masako Ueda
Journal of Economics/ Zeitschrift fur Nationalokonomie   63(1) 41-56   Jan 1996   [Refereed]
We analyze endogenous timing in the switching of technology. Each user chooses when to purchase a new product which embodies new technologies characterized by Marshallian externalities. The technological switch occurs when a large number of users ...
Toshihiro Matsumura
Japanese Economic Review   46(3) 257-265   Jan 1995   [Refereed]
This paper presents an investigation of the endogenous timing in multi‐stage duopoly games in which duopolists choose two variables over two periods. The paper elaborates the two‐stage strategic commitment game discussed by Brander and Spencer (19...
Toshihiro Matsumura and Marc Ryser
Journal of Legal Studies   XXIV(1) 165-187   1995   [Refereed]
This article examines a unique Japanese extralegal enforcement system. We discuss how banks in Japan reveal private information about unpaid notes through a joint clearinghouse. We use a 2-period model with asymmetric information between insiders ...


Toshihiro Matsumura
Journal of public utility economics   69(1) 79-82   2017   [Invited]
Toshihiro Matsumura and Akira Ogawa
Australian Economic Papers   49(2) 149-160   2010
When Small Firms Fight Back against Large Firms in R\&D Activities
Toshihiro Matsumura and Noriaki Matsushima
B.E. Journal of Economic Analysis and Policy   10(1) Article 81   2010
Matsumura Toshihiro
THE SOCIOLOGY OF LAW   2008(68) 120-129   2008
Matsumutra Toshihiro, Shimizu Daisuke
Journal of economics   108(3) 14-25   Dec 2007
藤田 友敬, 松村 敏弘
Soft law journal   (8) 37-64   Mar 2007
OTA Shozo, MATSUMURA Toshihiro, Shozo Ota, Toshihiro Matsumura
Journal of Japanese Society for Artificial Intelligence   19(5) 555-563   Sep 2004

Conference Activities & Talks

Dynamic Privatization Policy. [Invited]
4th International Workshop on Mixed Oligopolies   6 Oct 2018   Chonnam National University
Dynamic Privatization Policy. [Invited]
Kwansei Gakuin University Industrial Organization Workshop   9 Mar 2018   Kansai University
Procurement of Advanced Technology and Welfare-Reducing Vertical Integration. [Invited]
National Taiwan University Trade/IO Workshop   30 Dec 2017   National Taiwan University
Emission Cap Commitment versus Emission Intensity Commitment as Self-Regulation. [Invited]
Kwansei Gakuin University Industrial Organization Workshop   24 Nov 2017   Kwansei Gakuin University
Optimal Privatization Policy with Asymmetry among Private Firms. [Invited]
National Taiwan University Trade/IO Workshop   21 Oct 2017   National Tiwan University
Lobbying for Regulation Reform by Industry Leaders.
The Osaka Workshop on Economics of Institutions and Organizations   21 Apr 2017   Osaka University
Corporate Social Responsibility-Oriented Procurement and Vertical Integration. [Invited]
18 Mar 2017   Kyoto Sangyo University
Long-Run Effect of Energy Conservation Regulation. [Invited]
The Seventh Asia-Pacific Innovation Conference   19 Nov 2016   The Asia Pacific Innovation Conference
Environmental Corporate Social Responsibility as a Collusive Device.
UTCC Economics Seminar   19 Aug 2016   The University of the Thai Chamber of Commerce
Long-Run Evaluation for Public Infrastructure Investment. [Invited]
Trade and IO Workshop   30 Jul 2016   National Taiwan University

Research Grants & Projects

JSPS: Kekenhi
Project Year: Apr 1995 - Mar 1996    Investigator(s): MATSUMURA Toshihiro
Study on Mixed Markets
Study on Spatial Competition
Study on anti-monopoly legislation