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This paper is devoted to the study of the existence of a general equilibrium with price making firms. I assume that each firm is able to compute an objective demand for his produced goods and uses this information in order to set prices. The definition of an objective demand is set in a context...
Persistent link: https://www.econbiz.de/10005078844
Advance Disposal Fees (ADF) are quite popular in waste management policies, but they discourage any waste reduction effort at the household level. We propose a tiered ADF policy that enhances this system by giving households the possibility to sign a waste reduction contract in return for a...
Persistent link: https://www.econbiz.de/10010898156
In this paper, I show that several standards may survive in markets characterized by network externalities. This result is not explained by strategic choices in an dynamic context. It simply follows from a failure of coordination. In fact, I consider a two stage game. In the first stage, the...
Persistent link: https://www.econbiz.de/10005065825
In market structures with network externalities, it is often asserted that there is a natural tendency toward standardization. In this paper it is argued that incompatible products may survive in static models. Like Katz and Shapiro [1985], I develop a simple multi-product oligopoly in which the...
Persistent link: https://www.econbiz.de/10005066209