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Transparency, price-dependent demand and product variety
Gu, Yiquan; Wenzel, Tobias - 2010
This paper revisits the relationship between transparency on the consumer side and product variety as analyzed in Schultz (2009). We identify two welfare effects of transparency. More transparency decreases price-cost margins which is beneficial forwelfare. On the other hand, more transparency...
Persistent link: https://www.econbiz.de/10010302578
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Mergers and market power: Evidence from rivals' responses in European markets
Stiebale, Joel; Szücs, Florian - 2019
This paper analyzes the effects of mergers and acquisitions on the markups of non-merging rival firms across a broad set of industries. We exploit expert market definitions from the European Commission's merger decisions to identify relevant competitors in narrowly defined product markets....
Persistent link: https://www.econbiz.de/10012061918
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Evidence production in merger control: The role of remedies
Dertwinkel-Kalt, Markus; Wey, Christian - 2016
We analyze evidence production in merger control as a delegation problem under an inquisitorial and an adversarial competition policy system. Agents' incentives to produce evidence depend critically on the action set of the decision maker. In an inquisitorial system, allowing ex ante for a...
Persistent link: https://www.econbiz.de/10011449015
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Passive backward acquisitions and downstream collusion
Shekhar, Shiva; Thomes, Tim Paul - 2020
We investigate the effects of passive backward acquisitions in their efficient upstream supplier on downstream firms' ability to collude in a dynamic game of price competition with homogeneous goods. We find that passive backward acquisitions impede downstream collusion. The main driver of our...
Persistent link: https://www.econbiz.de/10012298163
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Vertical bargaining and retail competition: What drives countervailing power?
Gaudin, Germain - 2017
This paper investigates the effects of changes in retail market concentration when input prices are negotiated. Results are derived from a model of bilateral Nash-bargaining between upstream and downstream firms which allows for general forms of demand and retail competition. Whether...
Persistent link: https://www.econbiz.de/10011655165
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Bargaining, vertical mergers and entry
Sapi, Geza - 2012
merger incentives to influence entry decisions. Mergers can facilitate and deter entry. While horizontal mergers to deter … entry are never profitable, firms on different market levels may strategically choose to integrate vertically to keep a … potential entrant out of the market. I provide conditions for such entry-deterring vertical mergers to occur. …
Persistent link: https://www.econbiz.de/10010309290
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Semi-collusion in media markets
Dewenter, Ralf; Haucap, Justus; Wenzel, Tobias - 2010
This paper explores the effects that collusion can have in newspaper markets where firms compete for advertising as well as for readership. We compare three modes of competition: i) competition in the advertising and the reader market, ii) semi-collusion over advertising (with competition in the...
Persistent link: https://www.econbiz.de/10010303798
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Consumer behavior towards on-net/off-net price differentiation
Haucap, Justus; Heimeshoff, Ulrich - 2011
This paper explores how consumers react towards price differentiation between on-net and off-net calls in mobile telecommunications - a pricing policy that is common in many mobile telecommunications markets. Based on a survey of 1044 students we demonstrate that some consumers may suffer from a...
Persistent link: https://www.econbiz.de/10010304473
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Backward ownership, uniform pricing and entry deterrence
Hunold, Matthias - 2017
Entry deterrence can occur when downstream incumbents hold non-controlling ownership shares of a supplier which is … incumbents through the profit participation. Such backward ownership induces the supplier to accommodate entry by charging a low … uniform price to all downstream firms in case of entry. However, just the entry-accommodating behavior reduces entry profits …
Persistent link: https://www.econbiz.de/10011649478
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Vertical financial interest and corporate influence
Hunold, Matthias; Schlütter, Frank - 2019
The established literature on partial vertical ownership has derived distinct pro- and anti-competitive effects, depending on whether the upstream or the downstream firm holds the shares (forward or backward). We show that forward ownership can have the same effects as backward ownership (and...
Persistent link: https://www.econbiz.de/10011984454