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Export or Merge? Proximity vs. Concentration in Product Space
Muendler, Marc-Andreas - 2014
extract consumer rent. Lower physical trade costs of shipping make Bertrand price competition fiercer in differentiated … can therefore explain why FDI has become more frequent in recent periods in the presence of falling trade costs. Cross …
Persistent link: https://www.econbiz.de/10013060458
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Quantifying the Economic Effects of an EU-Japan Free Trade Agreement
Benz, Sebastian - 2013
The European Union and Japan have recently launched negotiations about a bilateral free trade agreement as means of … economic stimulation, with trade as a driving force to create growth and wealth. Since customs duties are already low, the … to shed light on two possible liberalization scenarios, a less ambitious and a comprehensive trade liberalization. In …
Persistent link: https://www.econbiz.de/10013078966
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Persuading Consumers with Social Attitudes
Halbheer, Daniel - 2011
This paper analyzes persuasive advertising and pricing in oligopoly if firms sell differentiated products and consumers have heterogeneous social attitudes towards the consumption by others. Deriving product demand from primitives, we show that the demand-enhancing effect of persuasive...
Persistent link: https://www.econbiz.de/10013124388
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Platform Intermediation in a Market for Differentiated Products
Galeotti, Andrea - 2008
intermediary extracts all the economic rents generated in the market, except when firms and consumers can trade outside the …
Persistent link: https://www.econbiz.de/10012772229
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Product versus Process : Innovation Strategies of Multi-Product Firms
Flach, Lisandra - 2015
We investigate the effect of better access to foreign markets on innovation strategies of multi-product firms in industries with different scope for product differentiation. Industry-specific demand and cost linkages induce a distinction between the returns to innovation. In differentiated...
Persistent link: https://www.econbiz.de/10013020507
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The Influence of Product Liability on Vertical Product Differentiation
Baumann, Florian - 2015
This paper explores the impact of product liability on vertical product differentiation when product safety is perfectly observable. In a two-stage competition, duopolistic firms are subject to strict liability and segment the market such that a low-safety product is marketed at a low price to...
Persistent link: https://www.econbiz.de/10013023185
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Manufacturers Mergers and Product Variety in Vertically Related Markets
Milliou, Chrysovalantou - 2014
We study final product manufacturers' incentives to introduce new products into the market and how they are affected by a merger among them. We show that when manufacturers distribute their products through multi-product retailers, a manufacturers merger, although it leads to an increase in the...
Persistent link: https://www.econbiz.de/10013047344
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Dynamic Entry in Vertically Differentiated Markets
Auer, Raphael; Sauré, Philip U. - 2021
We develop a model of vertical innovation in which firms incur a market entry cost and choose a unique level of quality. Once established, firms compete for market shares, selling to consumers with heterogeneous tastes for quality. The equilibrium of the pricing game exists and is unique within...
Persistent link: https://www.econbiz.de/10013315485
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Managerial versus Production Wages : Offshoring, Country Size and Endowments
Benz, Sebastian; Kohler, Wilhelm - 2021
In this paper, we explore the role of trade in differentiated final goods as well offshoring of tasks for inequality … use a 2-country model recently developed by Grossman & Rossi-Hansberg (2010b) that highlights trade in production task … premium as well as on international inequality measured in income per head. We compare these effects in a world where trade is …
Persistent link: https://www.econbiz.de/10013316113
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Reference Pricing of Pharmaceuticals
Brekke, Kurt Richard; Königbauer, Ingrid; Straume, Odd Rune - 2021
We consider a therapeutic market with potentially three pharmaceutical firms. Two of the firms offer horizontally differentiated brand-name drugs. One of the brand-name drugs is a new treatment under patent protection that will be introduced if the profits are sufficient to cover the entry...
Persistent link: https://www.econbiz.de/10013317373