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If an additional competitor reduces output per firm in a homogenous Cournot-oligopoly, market entry will be excessive … the excessive entry prediction. Tax evasion raises the number of firms in market equilibrium and can alter their welfare …-maximizing number. In consequence, evasion can aggravate or mitigate excessive entry. Which of these outcomes prevails is determined by …
Persistent link: https://www.econbiz.de/10012964693
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/10012764277
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/10009645230
. That includes mergers that are known to be unprofitable in the corresponding static equilibrium framework …
Persistent link: https://www.econbiz.de/10013031656
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/10013318548
This paper analyzes market segmentation in a two-sided market that consists of media consumers and advertisers. The analysis is motivated by a European Court of Justice Decision in October 2011, which allowed viewers to take advantage of international price differences and buy access to Premier...
Persistent link: https://www.econbiz.de/10013088134
Two-sided platform firms serve distinct customer groups that are connected through interdependent demand, and include major businesses such as the media industry, banking, and the software industry. A well known textbook result in one-sided markets is that a government may increase a...
Persistent link: https://www.econbiz.de/10013317276
We build a model of tacit collusion between firms that operate in multiple markets to study the effects of trade costs. A key feature of the model is that cartel discipline is endogenous. Thus, markets that appear segmented are strategically linked via the incentive compatibility constraint....
Persistent link: https://www.econbiz.de/10012926563
oligopoly. We find that in the short run, i.e. when the number of firms in both markets is exogenous, the results concerning tax … under-shifting are more pronounced, potentially to a very large extent. Instead, in the long run under endogenous entry and … exit over-shifting of both taxes is more likely to occur and is more pronounced under upstream oligopoly. As a result of …
Persistent link: https://www.econbiz.de/10012764392
In a recent paper, Alipranti et al. (2014, Price vs. quantity competition in a vertically related market, Economics Letters, 124: 122-126) show that in a vertically related market Cournot competition yields higher social welfare compared to Bertrand competition if the upstream firm subsidises...
Persistent link: https://www.econbiz.de/10012965632