Showing 1 - 10 of 79
Background: General Practitioners have limited means to compete. As quality is hard to observe by patients, GPs have incentives to signal quality by using instruments patients perceive as quality.<br/>Objectives: We investigate whether GPs exhibit different prescribing behavior (volume and value of...
Persistent link: https://www.econbiz.de/10011144447
This paper introduces a simple extensive form pricing game.The Bertrand outcome is a Nash equilibrium outcome in this game, but it is not necessarily subgame perfect.The subgame perfect equilibrium outcome features the following comparative static properties.The more similar firms are, the...
Persistent link: https://www.econbiz.de/10011092583
Persistent link: https://www.econbiz.de/10011090950
We study a differentiated product market in which an investor initially owns a controlling stake in one of two competing firms and may acquire a non-controlling or a controlling stake in a competitor, either directly using her own assets, or indirectly via the controlled firm. While industry...
Persistent link: https://www.econbiz.de/10011092483
In an oligopoly configuration characterized by high barriers to (re-)entry, a finite horizon, perfect information about demand and costs and the presence of three identical firms, we show that two of them (the predators) can choose to charge an initial price that is so low that the third (the...
Persistent link: https://www.econbiz.de/10011092518
We propose a methodology for estimating the competition effects from entry when firms sell differentiated products. We first derive precise conditions under which Bres- nahan and Reiss'entry threshold ratios (ETRs) can be used to test for the presence and to measure the magnitude of competition...
Persistent link: https://www.econbiz.de/10011092904
This paper studies the consequence of an imprecise recall of the price by the consumers in the Bertrand price competition model for a homogeneous good. It is shown that firms can exploit this weakness and charge prices above the competitive price. This markup increases for rougher recall of the...
Persistent link: https://www.econbiz.de/10011091443
In this paper an experimental environment to test theoretical predictions concerning R&D behavior of firms in duopoly …
Persistent link: https://www.econbiz.de/10011092197
options theory where the capacity level is given. We consider a monopoly setting as well as a duopoly setting. Our main … results are the following. In the duopoly setting we provide a fully dynamic analysis of entry deterrence …
Persistent link: https://www.econbiz.de/10011092592
In the paper the impact of R&D cooperation on prices in experimental duopoly markets is examined.As a theoretical … benchmark for the experiment, a two-stage duopoly model with an R&D stage with technological spillovers and a pricing stage is …
Persistent link: https://www.econbiz.de/10011092740