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Robustness of Production Networks Against Economic Disasters: Thailand Case

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Supply Chain Resilience

Abstract

This chapter studies the impacts of market concentration on risk-prevention incentives by closely observing the changes in the price and quantity in the hard disk drive (HDD) industry before and after the 2011 Thailand floods. The combination of high price and low quantity persisting after the floods indicates that the floods triggered the formation of a de facto cartel, and a shift in demand for hard disk drives alone is unable to explain the observed combination.

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Notes

  1. 1.

    Other works on cartels include Green and Porter (1984) and, more recently, a review of literature by Levenstein and Suslow (2006).

  2. 2.

    Western Digital’s production facility was greatly affected by the floods, halting production. See, for instance, Fuller (2011). Also, for more general discussion about the impacts of the 2011 Thailand floods, see Ministry of Economy, Trade and Industry (2012) and the World Bank (2012).

  3. 3.

    For instance, Stigler (1964), Salant (1976), Bresnahan and Reiss (1991), Nevo (2001), and a survey by Andrade et al. (2001).

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Author information

Authors and Affiliations

  1. School of Business, University of Leicester, Leicester, UK

    Hiroyuki Nakata

  2. Research Institute of Economy, Trade and Industry, Tokyo, Japan

    Hiroyuki Nakata

  3. Faculty of Economics, University of Tokyo, Tokyo, Japan

    Yasuyuki Sawada & Naoki Wakamori

  4. Asian Development Bank, Mandaluyong, Philippines

    Yasuyuki Sawada

Authors
  1. Hiroyuki Nakata
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  2. Yasuyuki Sawada
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  3. Naoki Wakamori
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Corresponding author

Correspondence to Hiroyuki Nakata .

Editor information

Editors and Affiliations

  1. Economic Research Institute for ASEAN and East Asia, ERIA, Gelora Bung Karno, Senayan, Jakarta, Indonesia

    Venkatachalam Anbumozhi

  2. Economic Research Institute for ASEAN and East Asia, ERIA, Gelora Bung Karno, Senayan, Jakarta, Indonesia

    Fukunari Kimura

  3. Jeffrey Cheah Institute for Southeast Asia, Sunway University, Selangor, Malaysia

    Shandre Mugan Thangavelu

Appendix

Appendix

See Appendix Figs. 6.10, 6.11, 6.12 and 6.13.

Fig. 6.10
figure 10

HDDs for consumers

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Fig. 6.11
figure 11

HDDs for desktop

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Fig. 6.12
figure 12

HDDs for enterprise

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Fig. 6.13
figure 13

HDDs for mobile

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Nakata, H., Sawada, Y., Wakamori, N. (2020). Robustness of Production Networks Against Economic Disasters: Thailand Case. In: Anbumozhi, V., Kimura, F., Thangavelu, S. (eds) Supply Chain Resilience. Springer, Singapore. https://doi.org/10.1007/978-981-15-2870-5_6

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