Showing 1 - 10 of 56
We propose a methodology for estimating the competition effects from entry when firms sell differentiated products. We … first derive precise conditions under which Bresnahan and Reiss' entry threshold ratios (ETRs) can be used to test for the … presence and to measure the magnitude of competition effects. We then show how to augment the traditional entry model with a …
Persistent link: https://www.econbiz.de/10009003374
-returns-to-scale technologies. When providers adopt a not-for-profit mission, the absence of a residual claimant can impede entry, pro- tecting the … core costs can have a non-neutral effect on entry, technology adoption, and industry performance. …
Persistent link: https://www.econbiz.de/10009367421
Understanding the development of chainstores is important given the large GDP share of services and the continuing importance of chains in bringing these services to market. Service chains provide a puzzle because they take a long time to develop even when there are obvious expansion...
Persistent link: https://www.econbiz.de/10009246609
determination of the number of producers and products over the business cycle. Economic expansions induce higher entry rates by … prospective entrants subject to irreversible investment costs. The sluggish response of the number of producers (due to sunk entry … decisions, producer entry, and the allocation of labor across sectors. The model performs at least as well as the benchmark real …
Persistent link: https://www.econbiz.de/10009293662
entry and product variety in a sticky-price model with monopolistic competition in which price stability would be optimal in … the absence of entry. Specifically, a long-run positive (negative) rate of inflation is optimal when the benefit of …
Persistent link: https://www.econbiz.de/10009293666
effect on broadband penetration, compared to those areas where the loops are not unbundled. LLU entry instead has a strongly …
Persistent link: https://www.econbiz.de/10011083592
We use cumulative reaction functions to compare long-run market structures in aggregative oligopoly games. We first compile an IO toolkit for aggregative games. We show strong neutrality properties across market structures. The aggregator stays the same, despite changes in the number of firms...
Persistent link: https://www.econbiz.de/10011083659
In industries with network effects, incumbents’ installed bases create barriers to entry that discourage entrepreneurs … from developing new innovations. Yet, entry is not the only commercialization route for entrepreneurs. We show that the … necessarily restrict innovation incentives. We also show that network effects promote acquisitions over entry and that the …
Persistent link: https://www.econbiz.de/10011083667
procurement, may hinder entry by new firms in public procurement markets. In this paper we report results from a laboratory … experiment exploring the relationship between reputation and entry in procurement. We implement a repeated procurement game with … reputational incentives for quality and the possibility of entry. We allow also the entrant to start off with a positive …
Persistent link: https://www.econbiz.de/10011083951
We study optimal merger policy in a dynamic model in which the presence of scale economies implies that firms can reduce costs through either internal investment in building capital or through mergers. The model, which we solve computationally, allows firms to invest or propose mergers according...
Persistent link: https://www.econbiz.de/10011084004