Showing 1 - 10 of 451
Miscoordination of buyers might prevent entry in an industry with an incumbent and a more efficient potential entrant …. Buyers' power therefore favours entry by eliminating coordination problems. We also identify a mechanism which facilitates … entry: if the potential entrant could credibly offer to pay a penalty for unfulfilled orders, miscoordination would be …
Persistent link: https://www.econbiz.de/10005789109
In a repeated game setting of a vertically related industry, we study the collusive effects of vertical mergers. We show that any vertical merger facilitates upstream collusion, no matter how large (in terms of capacity or size of product portfolio) the integrated downstream buyer. But a...
Persistent link: https://www.econbiz.de/10008468660
incumbents but acts as a strong deterrent against entry. Product variety is determined by the degree of spatial contestability of … entry deterring effect of discriminatory pricing is dominant whatever the degree of spatial contestability or the nature of …, the more effective is discriminatory pricing at limiting entry and the more likely is it that mill pricing is socially …
Persistent link: https://www.econbiz.de/10005136598
the higher toughness of the market, the entry of big firms leads them to sell more through a market expansion effect … oligopolistic firms because the procompetitive effect associated with the entry of a big firm dominates the resulting decrease in …
Persistent link: https://www.econbiz.de/10005048555
We construct a model where an entrepreneur could either innovate for entry or for sale. It is shown that increased … product competition tends to increase the relative profitability of innovation for sale relative to entry. Increased …
Persistent link: https://www.econbiz.de/10005497863
We examine vertical backward integration in oligopoly. Analysing a standard linear Cournot model, we find that for wide parameter ranges (i) some firms integrate, while others remain separated, and (ii) efficient firms are more likely to integrate vertically. Adopting a reduced-form approach, we...
Persistent link: https://www.econbiz.de/10005504590
This paper develops a model of successive oligopolies with endogenous market entry, allowing for varying degrees of … product differentiation and entry costs in both markets. Our analysis shows that the downstream conditions dominate the …
Persistent link: https://www.econbiz.de/10005114429
This Paper starts from a recent case studying how merger analysis in Europe may potentially be improved through simulation analysis. Starting from the product and geographic market definition in the Merger Decision, we formulate and estimate an oligopoly model with differentiated products. The...
Persistent link: https://www.econbiz.de/10005666636
We present a framework for the applied analysis of dynamic games with asymmetric information. The framework consists of a definition of equilibrium, and an algorithm to compute it. Our definition of Applied Markov Perfect equilibrium is an extension of the definition of Markov Perfect...
Persistent link: https://www.econbiz.de/10005791237
We characterize the divergence between in informational and economic efficiency in a rational expectations competitive market with asymmetric information about the costs of production. We find that prices may contain too much or too little information with respect o incentive efficient...
Persistent link: https://www.econbiz.de/10005791369