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@article{ART001938139},
author={Inhak Hwang and Han， Hyun Ok},
title={The Designation of Tofu Industry for Suitable Industries for SMEs and its Effects on Social Welfare in the Tofu Market},
journal={Journal of Regulation Studies},
issn={1738-7132},
year={2014},
volume={23},
number={2},
pages={183-214}

TY - JOUR
AU - Inhak Hwang
AU - Han， Hyun Ok
TI - The Designation of Tofu Industry for Suitable Industries for SMEs and its Effects on Social Welfare in the Tofu Market
JO - Journal of Regulation Studies
PY - 2014
VL - 23
IS - 2
PB - 한국규제학회
SP - 183
EP - 214
SN - 1738-7132
AB - The National Commission on Corporate Partnership (NCCP) designated the tofu market as a type of business suitable for SMEs in the end of 2011 in order for levelling the playing field between large businesses and SMEs. This paper examines the effects of the designation on market competition and social welfare. The tofu market in Korea consists of three dominant firms and many fringe firms. Based on dominant firm theory, we thus derive the deadweight loss function depending on the dominant firms’ market shares, profits and behavior. We measure the deadweight loss in the market from 2011 to 2013, and find that the deadweight loss has increased since the designation. We suspect the results come from the refrainment of competition among the dominant firms caused by the designation. The total market share of the dominant firms has been restricted not to exceed 80% after the designation. To satisfy the restriction, they reduced promotional activities such as price discount or 1+1 event. As a result of it, it seems that the profitability of each large firm is improved but consumers end up paying more.
KW - NCCP;Business Suitable for SMEs;Dominant Firm Theory;Deadweight Loss
DO -
UR -
ER -

Inhak Hwang and Han， Hyun Ok. (2014). The Designation of Tofu Industry for Suitable Industries for SMEs and its Effects on Social Welfare in the Tofu Market. Journal of Regulation Studies, 23(2), 183-214.

Inhak Hwang and Han， Hyun Ok. 2014, "The Designation of Tofu Industry for Suitable Industries for SMEs and its Effects on Social Welfare in the Tofu Market", Journal of Regulation Studies, vol.23, no.2 pp.183-214.

Inhak Hwang, Han， Hyun Ok "The Designation of Tofu Industry for Suitable Industries for SMEs and its Effects on Social Welfare in the Tofu Market" Journal of Regulation Studies 23.2 pp.183-214 (2014) : 183.

Inhak Hwang, Han， Hyun Ok. The Designation of Tofu Industry for Suitable Industries for SMEs and its Effects on Social Welfare in the Tofu Market. 2014; 23(2), 183-214.

Inhak Hwang and Han， Hyun Ok. "The Designation of Tofu Industry for Suitable Industries for SMEs and its Effects on Social Welfare in the Tofu Market" Journal of Regulation Studies 23, no.2 (2014) : 183-214.

Inhak Hwang; Han， Hyun Ok. The Designation of Tofu Industry for Suitable Industries for SMEs and its Effects on Social Welfare in the Tofu Market. Journal of Regulation Studies, 23(2), 183-214.

Inhak Hwang; Han， Hyun Ok. The Designation of Tofu Industry for Suitable Industries for SMEs and its Effects on Social Welfare in the Tofu Market. Journal of Regulation Studies. 2014; 23(2) 183-214.

Inhak Hwang, Han， Hyun Ok. The Designation of Tofu Industry for Suitable Industries for SMEs and its Effects on Social Welfare in the Tofu Market. 2014; 23(2), 183-214.

Inhak Hwang and Han， Hyun Ok. "The Designation of Tofu Industry for Suitable Industries for SMEs and its Effects on Social Welfare in the Tofu Market" Journal of Regulation Studies 23, no.2 (2014) : 183-214.