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(although deterministic) is not restricted to occur at a constant rate and may trigger future entry. It is shown that, typically …, entry occurs later along the collusive path than along the punishment path (since profits are lower in the latter case). The … possibility of delaying entry, therefore, constitutes an additional incentive for deviating just before entry is supposed to occur …
Persistent link: https://www.econbiz.de/10010842612
Persistent link: https://www.econbiz.de/10005031581
entrants. This paper analyses the theoretical conditions under which a low cost carrier can deter or accommodate entry by means … they can only deter entry if they launch a service with a quality that is superior to the entrant’s and to their own … previous one. Otherwise, they accommodate entry by improving their old product, when they face the entry of a full service …
Persistent link: https://www.econbiz.de/10005059435
We develop a model that is a synthesis of the two-sided markets duopoly model of Armstrong (2006) with the nested vertical and horizontal dierentiation model of Gabszewicz and Wauthy (2012), which consists of a linear city with dierent consumer densities on the left and on the right side of the...
Persistent link: https://www.econbiz.de/10010770516
This article focuses on the location decision of firms when competing in a spatial Cournot duopoly. Our original contribution is that firms are dependent on a natural resource input, which is assumed to be located in one of the extremes of the market, to be able to produce the output sought by...
Persistent link: https://www.econbiz.de/10010842604
In a two-sided market duopoly, we investigate the effects of delegating long run restrictive and unrestrictive decisions to managers by the platforms' owners, the effects of the platforms' ownership establishing long run decisions without managers and the impacts of asymmetric regimes between...
Persistent link: https://www.econbiz.de/10010842618
demonstrate that divide & conquer strategies are present in equilibrium. Finally, we study entry by an inferior-quality platform … and entry by a superior-quality platform to conclude that, in both cases, the entry deterrence strategy can be sustain. We … conclude that, under the presence of inter-group externalities, the entry deterrence strategy occurs when price competition is …
Persistent link: https://www.econbiz.de/10010842619
We study competition between two shopping centers (department stores or shopping malls) located at the extremes of a linear city. In contrast with the existing literature, we do not restrict consumers to make all their purchases at a single place. We obtain this condition as an equilibrium...
Persistent link: https://www.econbiz.de/10010842622
We study a duopoly with differentiated and substitutable goods composed of one consumer-friendly firm and one pure-profit maximizing firm. In such a duopoly, a regulatory authority intervenes to control the degree of altruism of the consumer-friendly firm. We conclude that under quantity...
Persistent link: https://www.econbiz.de/10011071604
We consider a duopoly with horizontally differentiated firms, where firms decide the long-term plans (locations) in addition to short-term issues (prices). As in Bárcena-Ruiz and Casado-Izaga (2014), we introduce a third entity in the city by considering the presence of a policymaker that...
Persistent link: https://www.econbiz.de/10011086648