Showing 1 - 10 of 431
The U.S. and EU Merger Guidelines strongly emphasize the relevance of the “ease of entry” argument in merger … evaluations. Up to now, very little is known empirically about how mergers affect entry and exit, and the resulting number of … dominated mergers. Interestingly, we also find that mergers foreclose potential entry in other product markets and reduce the …
Persistent link: https://www.econbiz.de/10011522411
Building on a model of the interaction of risk-averse firms that compete in forward and spot markets, we develop an empirical strategy to test whether oligopolistic firms use forward contracts for strategic motives, for risk-hedging, or for both. An increase in the number of players weakens the...
Persistent link: https://www.econbiz.de/10010275895
exporting firms triggers firm entry, reduces unemployment and increases wage dispersion in the on-the-job search model with …
Persistent link: https://www.econbiz.de/10010278888
We study an infinitely repeated oligopoly game in which firms compete on quantity and one of them is capacity constrained. We show that collusion sustainability is non-monotonic in the size of the capacity constrained firm, which has little incentive to deviate from a cartel. We also present...
Persistent link: https://www.econbiz.de/10014290080
We study the effect of entry on the price distribution in the German retail gasoline market. Exploiting more than 700 … entries over five years in an event study design, we find that entry causes a persistent first-order stochastic shift in the … to 12% of stations' gross margins. Consumers with easy access to information on prices gain the most from entry. The …
Persistent link: https://www.econbiz.de/10014377540
, the licensee's entry into the final products market, although increases the competition and the cost that the licensor … faces, it reinforces, instead of weakens, the licensing incentives. Furthermore, the licensee's entry augments the positive …
Persistent link: https://www.econbiz.de/10011615871
We test for the distributional effects of regulation and entry in the mobile telecommunications sector in a highly …. Next, we use a demand and supply equilibrium framework to simulate prices and the distribution of welfare without entry and … mobile termination rate regulation. We find that regulation benefits consumers significantly more than entry does, and that …
Persistent link: https://www.econbiz.de/10012052809
The relationship between competition and performance-related pay has been analyzed in single-principal-single-agent models. While this approach yields good predictions for managerial pay schemes, the predictions fail to apply for employees at lower tiers of a firm's hierarchy. In this paper, a...
Persistent link: https://www.econbiz.de/10010264481
While price-fixing cartel prosecutions have received significant attention, the policy determinants and the political preferences that guide such antitrust prosecutions remain understudied. We empirically examine the intertemporal shifts in U.S. antitrust cartel prosecutions during the period...
Persistent link: https://www.econbiz.de/10011388208
We develop a model of vertical innovation in which firms incur a market entry cost and choose a unique level of quality … spectrum has top and a bottom, is thus overcome by sequential entry. Our main contribution lies in handling these asymmetries. …
Persistent link: https://www.econbiz.de/10011555572