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Platforms often use fee discrimination within their marketplace (e.g., Amazon, eBay, and Uber specify a variety of merchant fees). To better understand the impact of marketplace fee discrimination, we develop a model that allows us to determine equilibrium fee and category decisions that depend...
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and thereby can lead to market foreclosure. Based on this theory, the article reviews a merger case in the financial …
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We consider a software vendor first selling a monopoly platform and then an application running on this platform. He may face competition by an entrant in the applications market. The platform monopolist can benefit from competition for three reasons. First, his profits from the platform...
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In recent years, there has been a resurgence of interest in the controversies surrounding capital theory. At the heart …
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It has long been suspected that the organization and ownership of firms could affect the innovation performance of industries in Canada by influencing economic incentives to generate new products and processes. This paper provides a general overview of the theoretical and empirical literature on...
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We study the timing of new technology adoption in markets with input outsourcing, and thus with vertical relations. We find that technology adoption can take place earlier when firms engage in input outsourcing than when they produce the input in-house. Hence, the presence of vertical relations...
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In this paper, we tackle the dilemma of pruning versus proliferation in a vertically differentiated oligopoly under the assumption that some firms collude and control both the range of variants for sale and their corresponding prices, likewise a multiproduct firm. We analyse whether pruning...
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