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In a framework where mergers are mutually excluding, I show that firms pursue anti- rather than (alternative) pro-competitive mergers. Potential outsiders to anti-competitive mergers refrain from pursuing pro-competitive mergers if the positive externalities from anti-competitive mergers are...
Persistent link: https://www.econbiz.de/10005419523
This paper studies an industry in which firms can choose to provide open or closed platforms. Open platforms, as opposed to closed, are extendable so third-party producers can develop extensions for them. Building on a two-sided market model, I show that firms might prefer to commit to keeping...
Persistent link: https://www.econbiz.de/10005645298
This paper evaluates partial acquisition strategies. The model allows for buying a share of a firm before the actual acquisition takes place. Holding a share in a competing firm before the acquisition of another firm, outsider-toehold, eliminates the insiders' dilemma, i.e. profitable mergers do...
Persistent link: https://www.econbiz.de/10005645314
Theoretically, cross ownership may mitigate mergers, i.e. market concentrations. Holding a share in a competing firm before the acquisition of another firm, outsider-toehold, is more profitable in some market constellations, due to the positive externality on the outsider (competing) firm when a...
Persistent link: https://www.econbiz.de/10005645341
competing for Internet access customers. Additionally, we discuss how price and non-price discrimination strategies may be used …
Persistent link: https://www.econbiz.de/10005645362
variations in Quality of Service and no price discrimination; (ii) variations in Quality of Service but no price discrimination …; (iii) variations in Quality of Service and price discrimination but no exclusive contracts; and (iv) no regulation: the …
Persistent link: https://www.econbiz.de/10010818542
In most wholesale electricity markets generators must submit step-function offers of supply to a uniform price auction …, and the market is cleared at the price of the most expensive offer needed to meet realised demand. Such markets can most … discontinuity of the required steps can rule out pure-strategy equilibria and may result in price instability. This paper argues …
Persistent link: https://www.econbiz.de/10005025457
-ups of the derived equilibrium are compared to results for the SFE of a uniform-price auction. …
Persistent link: https://www.econbiz.de/10005025460
A government wanting to promote an efficient allocation of resources as measured by the total surplus, should strategically delegate to its competition authority a welfare standard with a bias in favour of consumers. A consumer bias means that some welfare increasing mergers will be blocked....
Persistent link: https://www.econbiz.de/10005645436
We use a dynamic oligopoly model of entry and exit to evaluate how entry regulations affect profitability and market structure in retail. The model incorporates demand and store-level heterogeneity. Based on unique data for all retail food stores in Sweden, we find that the average entry costs...
Persistent link: https://www.econbiz.de/10010699973