Showing 1 - 10 of 16
Persistent link: https://www.econbiz.de/10001627315
We use a dynamic oligopoly model of entry and exit to evaluate how entry regulations affect profitability and market structure in retail. The model incorporates demand and store-level heterogeneity. Based on unique data for all retail food stores in Sweden, we find that the average entry costs...
Persistent link: https://www.econbiz.de/10010206790
This paper shows that market concentration is positively related to outsourcing activities in a framework of Cournot competition with strategic outsourcing in a first stage. The theoretical priors are confirmed by rank correlation coefficients between the intermediate goods import intensity and...
Persistent link: https://www.econbiz.de/10011492264
We use a dynamic oligopoly model of entry and exit with store-type differentiation to evaluate how entry regulations affect profitability, market structure and welfare. Based on unique data for all retail food stores in Sweden, we estimate demand, recover variable profits, and estimate entry...
Persistent link: https://www.econbiz.de/10011412927
Recent empirical evidence suggests that prices for some goods and services are higher in larger markets. This paper provides a demand-side explanation for this phenomenon when firms can choose how much to differentiate their products in a model of monopolistic competition with horizontal product...
Persistent link: https://www.econbiz.de/10009269224
This paper characterizes the Nash equilibrium in a pay-as-bid (discriminatory), divisible-good, procurement auction. Demand by the auctioneer is uncertain as in the supply function equilibrium model. A closed form expression is derived. Existence of an equilibrium is ensured if the hazard rate...
Persistent link: https://www.econbiz.de/10003809072
Persistent link: https://www.econbiz.de/10003218918
Forward sales is a credible commitment to aggressive spot market bidding, and it mitigates producers’ market power in electricity markets. Still it can be profitable for a producer to make such a commitment if it results in a soft response from competitors in the spot market (strategies are...
Persistent link: https://www.econbiz.de/10003723934
The paper investigates the determinants of banking profitability and banking market conditions in Austria. We conduct a panel econometric analysis which allows for testing the hypotheses which have become the most prominent in the literature on bank profitability: the...
Persistent link: https://www.econbiz.de/10011494855
Conjectural variation models are popular in empirical research as they infer the degree of market power from real data. IO-theorists, however disapprove it for lack of theoretical foundation arguing that dynamic reactions are forced into a static model with the strategy space and time horizon...
Persistent link: https://www.econbiz.de/10011491765