This study analyzed competition promotion policy regarding shipping conferences in the U.S., EU and Japan, and subsequent changes in corporate behaviors. It also analyzed competitive nature of liner shipping industry by estimating Panzar-Rosse H statistic based on panel data of three major Japanese shipping companies between 1986 and 2002. The block exemption for price fixing and capacity regulation by shipping conferences has been granted. However, since early 1980s, the competition promotion policy has enabled each shipping company to set its own price freely, affecting price cartel significantly and leading to the decreased market power in shipping conferences. On the other hand, new cooperative firm relation has been formed between shipping conference members and independent operators. Panzar-Rosse H statistic indicates that the three major Japanese liner carriers do not behave as forming perfect collusion. This result is consistent with monopolistic competition. It seems that competition has been intensified following the introduction of competition promotion policy.
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