Deregulation and Japan's industry: The case of the petroleum industry

Currently, most of Japan's regulated industries are in a bottleneck situation characterized by the combination of on-going deregulation with no progress being witnessed in the series of radical reform. In trying to break away from this botdeneck situation neither calling off the on-going deregulation, Policy A, nor continuing to endorse the common assumption that 'it is sufficient if a semblance of deregulation is achieved,' Policy B, is desirable. Policy A ignores the aspect of industrial regulation causing the industry's fragility, the mutually amplifying effect while Policy B makes light of the aspect of industry fragility conversely generating government involvement.