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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
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
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
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
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
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/10013315485
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/10013117358
We consider the effects of taxes for competing two-sided platforms. We first detail how a platform passes a tax increase on its prices. Adding price competition, we study next how the tax affects profits. Because of the strategic implications of the cross-side external effects, the tax increase...
Persistent link: https://www.econbiz.de/10012989632
We consider the effects of taxes for competing two-sided platforms. We first detail how a platform passes a tax increase on its prices. Adding price competition, we study next how the tax affects profits. Because of the strategic implications of the cross-side external effects, the tax increase...
Persistent link: https://www.econbiz.de/10012992633
We investigate private and social incentives for standardization to ensure market-wide system compatibility in a two-dimensional spatial competition model. We develop a new methodology to analyze competition on a torus and show that there is a fundamental conflict of interest between consumers...
Persistent link: https://www.econbiz.de/10013315567