Showing 1 - 10 of 85
This paper demonstrates that the standard conclusions regarding the comparison of Cournot and Bertrand competition are … Cournot competition yields higher output, lower wholesale prices, lower final prices, higher consumers’ surplus, and higher …
Persistent link: https://www.econbiz.de/10010784985
We analyze price competition between two brands. Buyers consist of switchers and two segments of customers with limited brand loyalty. We identify a unique symmetric mixed-strategy price equilibrium and find that competition is most relaxed when there exists some switchers.
Persistent link: https://www.econbiz.de/10010939501
We investigate a mixed oligopoly with misleading advertising competition. We find that, a welfare-maximizing public enterprise always engages in misleading advertising and that, an increase in the number of firms increases the profit and advertising level of each private firm.
Persistent link: https://www.econbiz.de/10010664137
Bundled discounts by pairs of otherwise independent firms play an increasingly important role as a strategic tool in several industries. Given that prices of firms competing for the same consumers are strategic complements, one would expect their discounts levels also to be strategic...
Persistent link: https://www.econbiz.de/10010933297
We analyze the impact of passive partial ownership (PPO) on horizontal mergers. We show that antitrust authorities ignoring the effects of previous PPO acquisitions invite sneaky takeovers: a PPO is strategically used prior to a full takeover to get a merger approved which is in fact detrimental...
Persistent link: https://www.econbiz.de/10010939488
This paper provides two characterizations of the retailer’s markup relative to the manufacturer’s markup in vertical relationships with homogeneous manufacturers and homogeneous retailers. We first show that retailer’s relative markup is equal to the ratio of the retail pass-through to the...
Persistent link: https://www.econbiz.de/10010930731
This paper studies the ambiguous welfare effects of compatibility in a platform market with endogenous content provision. Compatibility can be particularly harmful if it leads to reduced content but can be beneficial if content is sufficiently increased.
Persistent link: https://www.econbiz.de/10010930733
This paper analyzes the unilateral choices of application compatibility by platforms and the endogenous affiliations of two different groups (content providers and users). We find a novel result that for both platforms to unilaterally choose application compatibility is not an equilibrium unless...
Persistent link: https://www.econbiz.de/10011263393
This paper extends a discrete-choice model of differentiated product demand to consider consumer heterogeneity in dynamic games. Our approach applies to games involving both multi-product firms and static price competition.
Persistent link: https://www.econbiz.de/10011263409
This paper examines the effects of obtaining a strategic advantage of becoming the leader in the market on insiders’ incentives to merge and consumer welfare. We show that being the market leader is privately profitable for the merging insiders. We also show that the leading merger would...
Persistent link: https://www.econbiz.de/10011263415