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Bertrand competition in markets with network effects and switching costs

Suleymanova, Irina (contributor); Wey, Christian (contributor) - 2008

We analyze market dynamics under Bertrand duopoly competition in industries with network effects and consumer switching costs. Consumers form installed bases, repeatedly buy the products, and differ with respect to their switching costs. Depending on the ratio of switching costs to network...

Persistent link: https://www.econbiz.de/10003726117

How communication makes the difference between a cartel and tacit collusion : a machine learning approach

Andres, Maximilian; Bruttel, Lisa Verena; Friedrichsen, Jana - 2022

This paper sheds new light on the role of communication for cartel formation. Using machine learning to evaluate free … cartel formation and indirect attempts to collude tacitly. We document that firms are less likely to communicate explicitly … sanctions on communication reinforces the direct cartel-deterring effect of sanctions as collusion is more difficult to reach …

Persistent link: https://www.econbiz.de/10013164725

The leniency rule revisited : experiments on cartel formation with open communication

Andres, Maximilian; Bruttel, Lisa Verena; Friedrichsen, Jana - 2021

innocuous communication and communication about a cartel, sanctioning only the latter. To this aim, we introduce a participant …

Persistent link: https://www.econbiz.de/10012406226

Mergers in imperfectly segmented markets

Baake, Pio; Wey, Christian - 2009

We present a model with firms selling (homogeneous) products in two imperfectly segmented markets (a "high-demand" and a "low-demand" market). Buyers are mobile but restricted by transportation costs, so that imperfect arbitrage occurs when prices differ in both markets. We show that equilibria...

Persistent link: https://www.econbiz.de/10003874770

The comparison between ad valorem and unit taxes under monopolistic competition

Schröder, Philipp J. H. - 2003

This paper shows that the welfare dominance of ad valorem over unit taxes under imperfect competition, extends to the Dixit-Stiglitz framework with differentiated products, entry and love of variety. This contrasts against findings by Anderson et al. (J Public Econ, 2001) made in a similar...

Persistent link: https://www.econbiz.de/10011437563

How to turn an industry green : taxes versus subsidies

Dröge, Susanne; Schröder, Philipp J. H. - 2003

Environmental policies frequently target the ratio of dirty to green output within the same industry. To achieve such targets the green sector may be subsidised or the dirty sector be taxed. This paper shows that in a monopolistic competition setting the two policy instruments have different...

Persistent link: https://www.econbiz.de/10011438300

Supplier fixed costs and retail market monopolization

Caprice, Stéphane; Schlippenbach, Vanessa von; Wey, … - 2014

Considering a vertical structure with perfectly competitive upstream firms that deliver a homogenous good to a differentiated retail duopoly, we show that upstream fixed costs may help to monopolize the downstream market. We find that downstream prices increase in upstream firms' fixed costs...

Persistent link: https://www.econbiz.de/10010400592

Unionisation Structures and Firms' Incentives for Productivity Enhancing Investments

Haucap, Justus; Wey, Christian - Royal Economic Society - RES - 2003

This paper examines how unionisation structures that differ in the degree of wage centralisation affect firms' incentives to increase labour productivity. We distinguish three modes of unionisation with increasing degree of centralisation. (1) "Decentralisation" where wages are determined...

Persistent link: https://www.econbiz.de/10005232501

A cartel analysis of the German labor institutions and its implications for labor market reforms

Haucap, Justus (contributor); Pauly, Uwe (contributor); … - 2006

In this paper we apply standard cartel theory to identify the major institutional stabilizers of Germany's area tariff … system of collective bargaining between a single industry union and the industry's employers association. Our cartel analysis … stabilize the labor cartel while other pro-competitive proposals have failed. We argue that the pro-competitive recommendations …

Persistent link: https://www.econbiz.de/10003411719

Cartel stability and economic integration

Schröder, Philipp J. H. (contributor) - 2004 - [Elektronische Ressource]

Persistent link: https://www.econbiz.de/10002128044