This paper uses a bivariate probit model to analyze firms' decisions to impose regimes of exclusive dealing and/or exclusive territories with their distributors. We employ a panel data set of manufacturing firms (from 1990 to 2005) that contains information about such vertical restraints. Firms...

This paper investigates optimal licensing in a mixed oligopoly with a foreign firm. It is the first to compare licensing by means of a fixed fee and by means of a royalty when the innovator is a public firm. In contrast to a private oligopoly, we show that license via a fixed fee is superior to...

The paper examines the differential exercise of market power over the business cycle in the context of selected sectors in the Canadian manufacturing industry during the 1992-1/2007-4 period. In particular, empirical implications of non-collusive models previously explored by Wilson and Reynolds...

Feenstra and Ma (2008) develop a monopolistic competition model where firms choose their optimal product scope by balancing the profits from a new variety against the costs of “cannibalizing” sales of existing varieties. While more productive firms always have a higher market share, there is...

The aim of this paper is to shed light on the phenomenon of firm growth, analyzing the evolution of young firms within some selected industries. We find that the firm size distribution is fairly skewed to the right during the infancy stage, whereas it converges towards a more symmetric...

The theory predicts that spinoffs of successful parents are more successful than others. The success of the parents can be measured in two ways, either in terms of their survival duration or concerning their innovative activity. In this paper, the survival chances of spinoffs in the German...

The theory predicts that spinoffs of successful parents are more successful than others. The success of the parents can be measured in two ways, either in terms of their survival duration or concerning their innovative activity. In this paper, the survival chances of spinoffs in the German...

Most of the literature on price discrimination in input markets has focused on linear per-unit prices used by a monopolist supplier. Here, we provide a complete characterization of the equilibrium two-part tariffs, which can allow the monopolist supplier to obtain (at a minimum) the profit that...

This note shows that the pro-competitive effect of pre-commitments is robust to Stackelberg-like market structures. Although our results are in line with Allaz and Vila (1993), the two equilibria differ substantially. Sequential interactions foster a monopolization of the contract market and a...

In this paper, we discuss the case of the integration between NSK and Amatsuji Steel Ball by using the successive oligopoly model. We show that the integration does not lead to input foreclosure. However, it leads to customer foreclosure, if the fixed cost of a rival firm in the upstream market...