Showing 1 - 10 of 27
to a completely unregulated economy, we show that the domestic merger under Cournot competition is always profitable to …
Persistent link: https://www.econbiz.de/10010944639
We develop a model of interlocking bilateral relationships between upstream manufacturers that produce differentiated goods and downstream retailers that compete imperfectly for consumers. Contract offers and acceptance decisions are private information to the contracting parties. We show that...
Persistent link: https://www.econbiz.de/10010944641
The recent subprime crisis and the ongoing Euro zone crisis have generated an enormous interest in the credit rating industry not only among economists but also among average citizens. As a consequence, we have seen an explosion of the economic literature on the industry. The objective of this...
Persistent link: https://www.econbiz.de/10011004763
This paper analyzes how the stability of the tacit cooperation within a fringe of sev- eral identical ?rms is a¤ected by the presence of a more e¢ cient ?rm which does not take part in their cooperative agreement. The model assumes that the ?rms of the fringe adopt ?stick and carrot?strategies...
Persistent link: https://www.econbiz.de/10011004786
We study how the presence of a news aggregator affects quality choices of newspapers competing on the Internet. To provide a microfoundation for the role of the aggregator, we build a model of multiple issues where each newspaper chooses quality on each issue. This model captures the...
Persistent link: https://www.econbiz.de/10010729303
Two-period Cournot competition between n identical firms producing at constant marginal cost and able to store before …
Persistent link: https://www.econbiz.de/10010714007
We study bundling by a dominant multi-product firm facing competition from a rival multi-product firm. Compared to competition under independent pricing, competition under pure bundling reduces (increases) each firm's profit for low (high) levels of dominance, while for intermediate levels of...
Persistent link: https://www.econbiz.de/10010714020
Product design and advertisement strategy have been theoretically studied as separate firms decisions. In the present paper, we look at the link between advertisement and product design and we analyze how firms' advertising decisions influence the market effect of product design. We consider a...
Persistent link: https://www.econbiz.de/10010823106
We consider a simple two period model where consumers have different switching costs. Before the market opens, there was an incumbent who sold to all consumers. We identify the equilibrium both with Stackelberg and Bertrand competition and show how the presence of low switching cost consumers...
Persistent link: https://www.econbiz.de/10010823119
We show that collective bargaining can enhance retailers’ buying power vis-àvis their suppliers. We consider a model of vertically related markets, in which an upstream leader faces a competitive fringe of less efficient suppliers and negotiates secretly with several firms that compete in a...
Persistent link: https://www.econbiz.de/10011103545