Showing 1 - 10 of 43
This paper looks at the endogenous formation of airline alliances bymeans of a two-stage game where first airlines …
Persistent link: https://www.econbiz.de/10005212595
advertising creates subjective product differentiation and changes the nature of subsequent price competition. The pricing stage of …
Persistent link: https://www.econbiz.de/10005731293
We consider an upstream firm selling an input to several downstream firms through observable two-part tariff contracts. Downstream firms can alternatively buy the input from a less efficient source of supply. We show that downstream mergers lead to lower wholesale prices. They translate into...
Persistent link: https://www.econbiz.de/10005731303
In this paper we get the optimal two-part tariff contract for the licensing of a cost reducing innovation to a differentiated goods industry of a general size. We analyze the cases where the patentee is an independent laboratory or an incumbent firm. We show that, regardless of the number of...
Persistent link: https://www.econbiz.de/10005731391
differentiation is reduced as upstream market power increases. This holds under Bertrand and Cournot competition, although … differentiation is higher in the former. If competition takes place in a Cournot fashion and downstream firms have no bargaining power …
Persistent link: https://www.econbiz.de/10008752934
I analyze the implications of bundling on price competition in a market with complementary products. Using a model of … imperfect competition with product differentiation, I identify the incentives to bundle for two types of demand functions and …
Persistent link: https://www.econbiz.de/10005515895
Competition has long been regarded as productivity enhancing. Understanding the mechanism by which competition affects … disentangle the relationship between competition and two sides of innovation: product and process. I write down a model and … discuss the conditions under which we can identify the causal mechanism. Overall I find that competition, measured by the …
Persistent link: https://www.econbiz.de/10008500659
the interest and credit risks and the levelof competition in the banking markets. For the empirical contrast of the model …
Persistent link: https://www.econbiz.de/10005515861
In this paper we analyze firms' ability to tacitly collude on pricesin an infinitely repeated duopoly game of vertical productdifferentiation. We show that firms collude if and only if their discountfactor is high enough, i.e. if they value future profits sufficiently. We alsoshow that a lower...
Persistent link: https://www.econbiz.de/10005082634
We analyze third degree price discrimination by an upstream monopolistto a continuum of heterogeneous downstream firms. The novelty of ourapproach is to recognize that customizing prices may be costly, whichintroduces an interesting trade-off. As a consequence, partial pricediscrimination arises...
Persistent link: https://www.econbiz.de/10005212563