James A. Brander
Encyclopedia
James Alan Brander is a Canadian
economist
and a professor of Asia-Pacific International Trade, University of British Columbia
. He is known as co-author of a seminal 1986 article in The American Economic Review, with Tracy R. Lewis
, on “Oligopoly
and Financial Structure: The Limited Liability Effect”, as well as his work in international trade with Barbara Spencer, particularly the Brander Spencer model.
His 1981 paper with Barbara Spencer, Tariffs and the Extraction of Foreign Monopoly Rents Under Potential Entry, won the Harry Johnson
Prize of the Canadian Journal of Economics. By 1998, Brander's work had been cited over 1000 times.
He is a former managing editor of the Canadian Journal of Economics
(1997–2001) and a former co-editor of the Journal of International Economics
(1990–96), and he was a research associate of the National Bureau of Economic Research from 1983-2002. He was president of the Canadian Economics Association
for 2009-10.
to load up on debt, to a degree that would be socially dysfunctional. In the model, management might deliberately incur debts in order to wed its interests to those of the shareholders and pursue with their support a risky low-margin, high-output strategy that in turn may gain market share. This gamble has a chance of success if the other duopolist is low-risk, and would rather leave the market than engage in a price-cutting war. On the other hand, if both duopolists adopt the same approach, though, the result is that they are both worse off than if neither had. Furthermore, that result will have negative social utility—the affected market will resemble the recent airline industry in North America
.
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
and a professor of Asia-Pacific International Trade, University of British Columbia
University of British Columbia
The University of British Columbia is a public research university. UBC’s two main campuses are situated in Vancouver and in Kelowna in the Okanagan Valley...
. He is known as co-author of a seminal 1986 article in The American Economic Review, with Tracy R. Lewis
Tracy R. Lewis
Tracy R. Lewis, is a Martin L. Black professor of business administration within the Fuqua School of Business at Duke University. Before arriving at Duke University in 2003, he was the James Walter Eminent Scholar in Economics at the University of Florida....
, on “Oligopoly
Oligopoly
An oligopoly is a market form in which a market or industry is dominated by a small number of sellers . The word is derived, by analogy with "monopoly", from the Greek ὀλίγοι "few" + πόλειν "to sell". Because there are few sellers, each oligopolist is likely to be aware of the actions of the others...
and Financial Structure: The Limited Liability Effect”, as well as his work in international trade with Barbara Spencer, particularly the Brander Spencer model.
Education and work
Brander studied as an undergraduate at the Point Grey campus of the University of British Columbia, receiving a BA in Economics in 1975, which is currently the top Economics Department in Canada; then received an MA (1978) and a PhD (1979) from Stanford University. He was an Assistant Professor in the Department of Economics at Queen’s University from 1979-84 before moving back to the University of British Columbia.His 1981 paper with Barbara Spencer, Tariffs and the Extraction of Foreign Monopoly Rents Under Potential Entry, won the Harry Johnson
Harry Gordon Johnson
Harry Gordon Johnson was a Canadian economist who studied topics such as International trade and International finance.He was born on 26 May 1923 in Toronto, Canada, the elder son of two children of Henry Herbert Johnson, newspaperman and later secretary of the Liberal Party of Ontario, and his...
Prize of the Canadian Journal of Economics. By 1998, Brander's work had been cited over 1000 times.
He is a former managing editor of the Canadian Journal of Economics
Canadian Journal of Economics
The Canadian Journal of Economics/Revue canadienne d'économique is a peer-reviewed academic journal of economics published quarterly by Wiley-Blackwell on behalf of the Canadian Economics Association. In 1967 the journal was established from a split of The Canadian Journal of Economics and...
(1997–2001) and a former co-editor of the Journal of International Economics
Journal of International Economics
The Journal of International Economics is a peer-reviewed academic journal in the field of economics. The journal publishes articles on both theoretical and empirical aspects of international economics...
(1990–96), and he was a research associate of the National Bureau of Economic Research from 1983-2002. He was president of the Canadian Economics Association
Canadian Economics Association
The Canadian Economics Association is an academic association of Canadian economists. Formerly part of the Canadian Political Science Association, CEA was formed as a separate scientific society in 1967. It currently has over 1,500 members, two thirds of which reside in Canada...
for 2009-10.
Economic theory
Brander and Lewis proposed a duopoly model in which it might be rational for the managers of a corporationCorporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
to load up on debt, to a degree that would be socially dysfunctional. In the model, management might deliberately incur debts in order to wed its interests to those of the shareholders and pursue with their support a risky low-margin, high-output strategy that in turn may gain market share. This gamble has a chance of success if the other duopolist is low-risk, and would rather leave the market than engage in a price-cutting war. On the other hand, if both duopolists adopt the same approach, though, the result is that they are both worse off than if neither had. Furthermore, that result will have negative social utility—the affected market will resemble the recent airline industry in North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
.
Personal life
Brander grew up in Victoria, BC. His wife is his collaborator, Barbara Spencer, whom he met while they were at Queen's University. He is an ice hockey fan and wrote a mathematical analysis of Vancouver's teams.External links
- Brander's site at the University of British Columbia
- Information about James A. Brander from RePEcŘepečŘepeč is a village and municipality in Tábor District in the South Bohemian Region of the Czech Republic.The municipality covers an area of , and has a population of 267 ....