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This paper provides a conceptual framework of multilateral bargaining in a bilaterally oligopolistic industry to analyze the motivations for horizontal mergers, technology choice, and their welfare implications. We first analyze the implication of market structure for the distribution of...
Persistent link: https://www.econbiz.de/10005772888
This paper investigates how the formation of larger buyers affects a supplier's profits and, by doing so, his incentives to undertake non-contractible activities. We first identify two chan-nels of buyer power, which allows larger buyers to obtain discounts. We subsequently exam-ine the effects...
Persistent link: https://www.econbiz.de/10005772949
. Depending on the ratio of switching costs to network effects, our model generates convergence to monopoly as well as market … switching costs market sharing is the unique equilibrium and for small switching costs both monopoly and market sharing … equilibria emerge. We also analyze stationary and stable equilibria, where we show that a monopoly outcome is almost inevitable …
Persistent link: https://www.econbiz.de/10005863289
This paper presents a model of takeover incentives in an oligopolistic industry, which,in contrast to previous approaches, takes both insiders' and outsiders' gains from anincrease in industry concentration into account. Our main application is to comparetakeover incentives in a differentiated...
Persistent link: https://www.econbiz.de/10005772946