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evaluation is also justified in a Cournot-oligopoly with free but costly entry. If input markets are competitive and output per … firm declines with the number of firms (business stealing), there is excessive entry into such oligopoly. If trade unions … raise wages above the competitive level, output and profits per firm decline, which could deter entry and thus improve …
Persistent link: https://www.econbiz.de/10012866378
We examine tippy network markets that accommodate price discrimination. The analysis shows that when a mild equilibrium refinement, the monotonicity criterion, is adopted, network competition may have a unique subgame-perfect equilibrium regarding the winner’s identity; the prevailing brand...
Persistent link: https://www.econbiz.de/10013291317
We analyze oligopolistic third-degree price discrimination relative to uniform pricing when markets are always covered. Pricing equilibria are critically determined by supply-side features such as the number of firms and their marginal cost differences. It follows that each firm’s Lerner index...
Persistent link: https://www.econbiz.de/10013314756
The seminal paper by Salant, Switzer and Reynolds (1983) showed that merger in a standard Cournot framework with linear demand and linear costs is not profitable unless a large majority of the firms are involved in the merger. However, many strategic aspects matter for firm competition such as...
Persistent link: https://www.econbiz.de/10010261187
. That includes mergers that are known to be unprofitable in the corresponding static equilibrium framework. …
Persistent link: https://www.econbiz.de/10010435767
Standard media economics models imply that increased platform competition decreases ad levels and that mergers reduce … assumptions that there is no advertising congestion and that viewers single-home. Allowing for crowding in viewer attention spans …
Persistent link: https://www.econbiz.de/10010280642
economic theory prescribes that the advertising volume can be optimally reduced by levying a tax on ads. However, making use of … recent advances in the theory of Industrial Organization and two-sided markets we show that taxing ads may be …
Persistent link: https://www.econbiz.de/10010264591
We analyze spying out a rival’s price in a Bertrand market game with incomplete information. Spying transforms a simultaneous into a robust sequential moves game. We provide conditions for profitable espionage. The spied at firm may attempt to immunize against spying by delaying its pricing...
Persistent link: https://www.econbiz.de/10012892109
oligopoly. We find that in the short run, i.e. when the number of firms in both markets is exogenous, the results concerning tax … undershifting are more pronounced, potentially to a very large extent. Instead, in the long run under endogenous entry and exit … overshifting of both taxes is more likely to occur and is more pronounced under upstream oligopoly. As a result of this, a tax …
Persistent link: https://www.econbiz.de/10010264586
A well-known result by Vega-Redondo (1997) implies that in symmetric Cournot oligopoly, imitation leads to the …
Persistent link: https://www.econbiz.de/10010270592