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competition for the prey's assets is most harmful to predators when the use of the prey's assets exerts strong negative … bidding competition for the prey. It is also shown that a restrictive merger policy might be counterproductive, since it might … increase the incentives for predation by helping predators avoid the bidding competition. Moreover, the incentive for predation …
Persistent link: https://www.econbiz.de/10005661959
competition. Holdup and inter-temporal links make policy design more difficult, however. Even reasonable policies may be worse …
Persistent link: https://www.econbiz.de/10005788894
less valuable. The latter effect is due to downstream competition between buyers and, as we show, is also stronger the …
Persistent link: https://www.econbiz.de/10005136445
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
I show that exclusive, staggered supply contracts can decrease industry competition when there are economies of scale …
Persistent link: https://www.econbiz.de/10011083811
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. Under fierce downstream competition, the incumbent cannot compensate a …
Persistent link: https://www.econbiz.de/10005791363
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
There is a substantial theoretical literature on the potential effects of loyalty contracts, but a relative paucity of empirical work. This Paper employs the event study methodology to examine the effect of exclusionary contracts on firm performance in the ocean shipping industry. Shipping...
Persistent link: https://www.econbiz.de/10005497855
Recent cases in the US (Meritor, Eisai) and in the EU (Intel) have revived the debate on the use of price-cost tests in loyalty discount cases. We draw on existing recent economic theories of exclusion and develop new formal material to argue that economics alone does not justify applying a...
Persistent link: https://www.econbiz.de/10011262886
innovation policy in the context of EU economic law (competition policy, intellectual property law, sector regulation). As such …
Persistent link: https://www.econbiz.de/10009205060