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Do Firms sell forward for Strategic Reasons? An Application to the Wholesale Market for Natural Gas
Eijkel, Remco van; Moraga, J.L. - Tinbergen Institute - 2010
Building on a model of the interaction of risk-averse frms that compete in forward and spot markets, we develop an empirical strategy to test whether oligopolistic frms use forward contracts for strategic motives, for risk-hedging, or for both. An increase in the number of players weakens the...
Persistent link: https://www.econbiz.de/10008838600
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Pivotal Suppliers and Market Power in Experimental Supply Function Competition
Brandts, Jordi; Reynolds, Stanley S.; Schram, Arthur - Tinbergen Institute - 2011
pivotal; that is, if the supplier's capacity is required in order to meet demand. To be able to isolate the impact of demand … and capacity conditions on market power, our treatments vary the distribution of demand levels as well as the amount and …
Persistent link: https://www.econbiz.de/10008838542
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Trust and Recidivism; the Partial Success of Corporate Leniency Program in the Laboratory
Hinloopen, Jeroen; Soetevent, Adriaan - Tinbergen Institute - 2006
An experiment is conducted were subjects interact repeatedly to examine the effect of a particular leniency program on cartel formation, cartel stability and cartel recidivism. The program leads to lower prices for three reasons. First, non-cooperators are more persistent in their behavior which...
Persistent link: https://www.econbiz.de/10005137065
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Duopoly Dynamics with a Barrier to Entry
Abbring, Jaap H.; Campbell, Jeffrey R. - Tinbergen Institute - 2007
-perfect duopoly dynamics with ongoing demand uncertainty. All entrants serving the model industry incur sunk costs, and exit avoids …. Numerical experiments indicate that a barrier to entry's quantitative relevance depends on demand shocks' serial correlation. If … demand shocks, the direct effect is small and the barrier to entry has no substantial effect on the number of competitors …
Persistent link: https://www.econbiz.de/10005136901
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Cooperation in the Classroom: Experimenting with R&D Cooperatives
Goeree, Michelle Sovinsky; Hinloopen, Jeroen - Tinbergen Institute - 2006
This paper describes a classroom experiment that illustrates the research and development investment incentives facing firms when technological spillovers are present. The game involves two stages in which student sellers first make investment decisions then production decisions. The classroom...
Persistent link: https://www.econbiz.de/10005504934
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Nonparametric Estimation of the Costs of Non-Sequential Search
Moraga-González, José Luis; Sándor, Zsolt; … - Tinbergen Institute - 2008
We study a consumer non-sequential search oligopoly model with search cost heterogeneity. We first prove that an equilibrium in mixed strategies always exists. We then examine the nonparametric identification and estimation of the costs of search. We find that the sequence of points on the...
Persistent link: https://www.econbiz.de/10005209478
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Adoption of Superior Technology in Markets with Heterogeneous Network Externalities and Price Competition
Janssen, Maarten C.W.; Mendys, Ewa - Tinbergen Institute - 2000
In this paper we investigate whether markets with heterogeneous network externalities can be locked-in by old technologies even if superior technologies are available. Heterogeneous network externalities are present when some consumers care more about the size of the market share of a good than...
Persistent link: https://www.econbiz.de/10005144403
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Platform Intermediation in a Market for Differentiated Products
Galeotti, Andrea; Moraga-González, José Luis - Tinbergen Institute - 2008
We study a two-sided market where a platform attracts firms selling differentiated products and buyers interested in those products. In the unique subgame perfect equilibrium of the game, the platform fully internalizes the network externalities present in the market and firms and consumers all...
Persistent link: https://www.econbiz.de/10005144420
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Maximum Likelihood Estimation of Search Costs
Moraga-González, José Luis; Wildenbeest, Matthijs R. - Tinbergen Institute
In a recent paper Hong and Shum [2006. Using price distributions to estimate search costs. Rand Journal of Economics 37, 257–275] present a structural method to estimate search cost distributions. We extend their approach to the case of oligopoly and present a new maximum likelihood method to...
Persistent link: https://www.econbiz.de/10005144542
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Do Auctions select Efficient Firms?
Janssen, Maarten C.W.; Karamychev, Vladimir A. - Tinbergen Institute - 2007
This paper considers a government auctioning off multiple licenses to firms who compete in a market after the auction. Firms have different costs, and cost efficiency is private information at the auction stage and the market competition stage. If only one license is auctioned, standard results...
Persistent link: https://www.econbiz.de/10005144557