摘要：The end of the 1990's saw a number of foreign automobile manufacturers become the largest shareholders in several Japanese automobile manufacturers. It seems logical to conclude that a firm only enters into a partial ownership arrangement ( POA ) if it is profit maximizing. However, research to date has treated POA s as if exogenous to the model. This paper develops a model that assumes POA s are determined endogenously. Data for the Japanese automobile industry are then used to investigate the factors that determine whether a firm enters into a POA , and the effects a POA has on the price-cost margin. The findings of this paper suggest that while both foreign and domestic firms take an interest in product mix when exploring POA s in the Japanese market, they have differing profit incentives. Furthermore, the level of ownership has a positive effect on POA s.
