Showing 1 - 10 of 28
Switching costs and network effects bind customers to vendors if products are incompatible, locking customers or even markets in to early choices. Lock-in hinders customers from changing suppliers in response to (predictable or unpredictable) changes in efficiency, and gives vendors lucrative ex...
Persistent link: https://www.econbiz.de/10005124423
This is a preliminary draft of an Invited Symposium paper for the World Congress of the Econometric Society to be held in Seattle in August 2000. We discuss the strong connections between auction theory and 'standard' economic theory, and argue that auction-theoretic tools and intuitions can...
Persistent link: https://www.econbiz.de/10005792157
We study the regulation of a utility firm which is active in a competitive unregulated sector as well. If the firm … and quantity competition) and also optimal regulation. Accounting for the several effects of regulation on the unregulated … market, we show the existence of an informational externality, in that regulation provides useful information to the rival …
Persistent link: https://www.econbiz.de/10005124135
We analyze the design of optimal regulation of a domestic monopolist that also competes in an unregulated foreign … market. We show how foreign activities by the regulated firm affect domestic regulation, consumers’ surplus and firm …
Persistent link: https://www.econbiz.de/10005504706
We study the effects of exclusive contracts and market-share discounts (i.e., discounts conditioned on the share a firm receives of the customer’s total purchases) in an adverse selection model where firms supply differentiated products and compete in non-linear prices. We show that exclusive...
Persistent link: https://www.econbiz.de/10008502577
We analyze the effects of competition with quantity discounts in a duopoly model with asymmetric firms. Consumers are privately informed about demand, so firms use quantity discounts as a price discrimination device. However, a dominant firm may also use quantity discounts to weaken or eliminate...
Persistent link: https://www.econbiz.de/10008784721
We develop a theory of exclusive dealing that rehabilitates pre-Chicago-school analyses. Our theory rests on two realistic assumptions: that firms are imperfectly informed about demand, and that a dominant firm has a competitive advantage over its rivals. Under those assumptions, exclusive...
Persistent link: https://www.econbiz.de/10011084291
This Paper studies prudential regulation of a multinational bank (MNB here-after). We analyse how two frequently chosen … impact on regulators’ behaviour. We show that branch representation leads to a more lenient regulation for the home unit (the … unit of incorporation) than subsidiary representation. Regulation of the foreign unit can be softer or tougher in branch …
Persistent link: https://www.econbiz.de/10005114319
We compare the most common methods for selling a company or other asset when participation is costly: a simple simultaneous auction, and a sequential process in which potential buyers decide in turn whether or not to enter the bidding. The sequential process is always more efficient. But...
Persistent link: https://www.econbiz.de/10004976795
We compare the two most common bidding processes for selling a company or other asset when participation is costly to buyers. In an auction all entry decisions are made prior to any bidding. In a sequential bidding process earlier entrants can make bids before later entrants choose whether to...
Persistent link: https://www.econbiz.de/10005123726