Showing 1 - 10 of 76
for entry and may also make consumers better off compared to the situation with no labour union if the labour productivity …
Persistent link: https://www.econbiz.de/10010681771
In this paper, we examine a free entry aggregative game where agents can be asymmetric. We show the existence of a pure …
Persistent link: https://www.econbiz.de/10011189517
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 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
A new theory of loss-leader pricing is provided in which firms advertise low (below cost) prices for certain goods to signal that their other unadvertised (substitute) goods are not priced too high. The theory is applied to the pricing of upgrades. The results contrast with most existing...
Persistent link: https://www.econbiz.de/10010729458
We develop a model of monopolistic competition that accounts for consumers’ heterogeneity in both incomes and preferences. This model makes it possible to study the implications of income redistribution on the toughness of competition. We show how the market outcome depends on the joint...
Persistent link: https://www.econbiz.de/10010743704
Consider the classical double marginalization problem of single-product successive monopolies. We show that the ratio of the cost pass-through at the final sale relative to that at the wholesale level is characterized by the curvature of inverse demand in the final market. We also apply...
Persistent link: https://www.econbiz.de/10010743705
We examine the average equilibrium price when quantity setting oligopolies price discriminate. It is known that for the price discrimination extension of Cournot competition the average price is independent of the extent of price discrimination whenever the demand is linear. We show that this...
Persistent link: https://www.econbiz.de/10010594161
We show that the entry of private profit-maximising firms makes the consumers worse off compared to having a … nationalised monopoly. Such entry increases the nationalised firm’s profit, industry profit, and social welfare, at the expense of …
Persistent link: https://www.econbiz.de/10010576440
number of competitors. When competition is intense, most of the gains from extra competition are captured with the entry of a … small number of firms and subsequent gains from entry are small. Conversely, when the intensity of competition is small, a …
Persistent link: https://www.econbiz.de/10011041650