Title: The Impact of Antitrust Law on Enterprise Output Allocation

Speaker: Tan Yong, Professor of Nanjing University of Finance and Economics; Research Fellow of Vanderbilt University, USA; Member of the European Trade Study Group (ETSG) and Asia Pacific Trade Seminar (APTS). His papers have been published in domestic and foreign authoritative journals such as Review of Economics and Statistics, International Economic Review, Journal of Economic Behavior and Organization, Journal of Association of Environmental and Resource Economists, Review of International Economics, Southern Economic Journal, Economic Research Journal and China Economic Quarterly.

Abstract: In this paper, we study the influence of the implementation of antitrust law on firm-level output allocation between domestic and foreign markets. The implementation of antitrust law in 2008 limits the capability of monopolistic firms in price setting and output controlling, and prohibits local protectionism which catalyzes factors’ mobility in domestic market. The DDD results indicate that although the implementation of the antitrust law boosts firms’ domestic sales, it substantially reduces firm-level export revenues and probability. To uncover the potential mechanism and explain the empirical findings, we develop a model incorporating heterogeneous firms which face nontrivial output-adjustment costs. In response to any shock, the representative firm needs to sequentially decide (1) whether it wants to change output level by paying the adjustment cost? (2) reallocate sales between the domestic and foreign markets to equate the marginal profit. Finally, we confirm the adjustment cost channel through presenting a plethora of heterogeneous results.

Date & time: 22 April 2025, 09:00

Venue: B321, Zhixin Building, Central Campus, Shandong University