Showing 1 - 10 of 17
This paper studies a model where exclusive dealing (ED) can both promote investment and foreclose a more efficient supplier. While investment promotion is usually regarded as a pro-competitive effect of ED, our paper shows that it may be the very reason why a contract that forecloses a more...
Persistent link: https://www.econbiz.de/10005789156
Rasmusen et al. (1991) and Segal and Whinston (2000) show that an incumbent monopolist might exclude entry of a more efficient competitor, by exploiting externalities among buyers. We show that their results hold only when downstream competition among buyers does not exist or is weak enough....
Persistent link: https://www.econbiz.de/10005791363
practitioners and economists, taking the existing regulatory environment as fixed. Based on the degree of existing regulation (full …
Persistent link: https://www.econbiz.de/10005497999
network available to other companies (local loop unbundling, or LLU). Entrants are then able to upgrade their individual lines … that over the course of time, many entrants have begun to take advantage of LLU. However, unbundling has little or no … technology (cable) which is not subject to regulation, and what we discover is that inter-platform competition has a positive …
Persistent link: https://www.econbiz.de/10011083592
How does an upstream firm determine the size of its distribution network, and what is the role of vertical restraints? To address these questions we develop and estimate two models of outlet entry, starting from the basic trade-off between market expansion and fixed costs. In the coordinated...
Persistent link: https://www.econbiz.de/10008468630
background of the new block exemption regulation for cars in Europe, we explore an econometric approach to define the relevant … market share thresholds stipulated in the block exemption regulation. We find that, if we would have used an approach based …
Persistent link: https://www.econbiz.de/10005136670
Exclusive dealing contracts between manufacturers and retailers force new entrants to set up their own costly dealer networks to enter the market. We ask whether such contracts may act as an entry barrier, and provide an empirical analysis of the European car market. We first estimate a demand...
Persistent link: https://www.econbiz.de/10011083855
We propose a simple theory of predatory pricing, based on scale economies and sequential buyers (or markets). The entrant (or prey) needs to reach a critical scale to be successful. The incumbent (or predator) is ready to make losses on earlier buyers so as to deprive the prey of the scale it...
Persistent link: https://www.econbiz.de/10004973970
We propose a methodology for estimating the competition effects from entry when firms sell differentiated products. We first derive precise conditions under which Bresnahan 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/10009003374
We study substitution from fixed-line to mobile voice access, and the role of various complementarities that may influence this process.We use rich survey data on 160,363 households from 27 EU countries during 2005-2012. We estimate a discrete choice model where households may choose one or both...
Persistent link: https://www.econbiz.de/10011084714