Showing 1 - 10 of 16
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
This paper questions whether competition can replace sector-specific regulation of mobile telecommunications. We show …
Persistent link: https://www.econbiz.de/10005661431
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
Sports organizations, Hollywood studios and TV channels grant satellite and cable networks exclusive rights to televise their matches, movies and media contents. Exclusive distribution prevents viewers from watching attractive programs, and reduces the TV-distributors incentives to compete in...
Persistent link: https://www.econbiz.de/10005789055
There is diverging empirical evidence on the competitive effects of horizontal mergers: consumer prices (and thus presumably competitors' profits) often rise while competitors' share prices fall. Our model of endogenous mergers provides a possible reconciliation. It is demonstrated that...
Persistent link: https://www.econbiz.de/10005497962
Anti-competitive mergers benefit competitors more than the merging firms. We show that such externalities reduce firms' incentives to merge (a hold-up mechanism). Firms delay merger proposals, thereby foregoing valuable profits and hoping other firms will merge instead - a war of attrition. The...
Persistent link: https://www.econbiz.de/10005788894
We explain the empirical puzzle why mergers reduce profits, and raise share prices. If being an 'insider' is better than being an 'outsider', firms may merge to preempt their partner merging with a rival. The stock-value is increased, since the risk of becoming an outsider is eliminated. We also...
Persistent link: https://www.econbiz.de/10005504698