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In Cournot's model of complements, the producers of A and B are both monopolists. This paper extends Cournot's model to allow for competition between complements on one side of the market. Consider two complements, A and B, where the A+B bundle is valuable only when purchased together. Good A is...
Persistent link: https://www.econbiz.de/10005622751
prices and advertising tariffs. We build on the work of Gabszewicz, Laussel and Sonnac (2001, 2002), whose model we take as …), cover prices are positive and the minimal differentiation outcome does not depend on the size of the advertising market. We … to cooperate in setting cover prices and advertising tariffs but not the editorial line …
Persistent link: https://www.econbiz.de/10010905448
We study competitive interaction between profit-maximizing firms that sell software and complementary goods or services. In addition to tactical price competition, we allow firms to compete through business model reconfigurations. We consider three business models: the proprietary model (where...
Persistent link: https://www.econbiz.de/10005015151
addition to competing through adjustments of tactical variables such as price or advertising intensity, we allow the incumbent …
Persistent link: https://www.econbiz.de/10008528443