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We examine whether cooperation in R&D leads to product market collusion. Suppose that firms engage in a stochastic R&D race while maintaining the collusive equilibrium in a repeated-game framework. Innovation under competitive R&D creates inter-firm asymmetries, which destabilizes the collusive...
Persistent link: https://www.econbiz.de/10010332459
AT&T was known for both funding a world-class research lab and delaying deployment of useful innovations from the lab. To explain this behavior we consider a model with an incumbent facing a potential entrant. The incumbent can choose from two technologies for production: old and new. The...
Persistent link: https://www.econbiz.de/10010332466
We examine whether cooperation in R&D leads to product market collusion. Suppose that firms engage in a stochastic R&D race while maintaining the collusive equilibrium in a repeated-game framework. Innovation under competitive R&D creates inter-firm asymmetries, which destabilizes the collusive...
Persistent link: https://www.econbiz.de/10014221707
AT&T was known for both funding a world-class research lab and delaying deployment of useful innovations from the lab. To explain this behavior we consider a model with an incumbent facing a potential entrant. The incumbent can choose from two technologies for production: old and new. The...
Persistent link: https://www.econbiz.de/10014221709
the new technology. A firm has to buy the technology in a 'scoring auction'. This means that both the price and the …
Persistent link: https://www.econbiz.de/10011421480
Manufacturers with wholesale price indices from the Bank of Japan, and Herfindahl indices from the Japan Fair Trade Commission. The … price-cost margins tend to be more concentrated. Cross-section estimates reveal a U-shaped mapping from concentration to …
Persistent link: https://www.econbiz.de/10010332330
-degree price discrimination in oligopoly. By deriving linear demand from a representative consumer's utility and focusing on the … and complementarity for price discrimination to improve social welfare. In particular, we show that price discrimination … can improve social welfare if firms' brands are substitutes in a market where the discriminatory price is higher and …
Persistent link: https://www.econbiz.de/10010332412
We investigate a multi-market Cournot model with strategic process R&D investments wherein a multi-market monopolist meets entrants that enter one of the markets. We find that entry can enhance the total R&D expenditure of the incumbent firm. That is, entry can stimulate R&D effort. Moreover,...
Persistent link: https://www.econbiz.de/10010332451
price-cost margin and Herfindahl index against the non-nested alternative that the industry price-cost margin remains …
Persistent link: https://www.econbiz.de/10010332500
We investigate the entry timing and location decisions under market-size uncertainty with Brownian motions in a continuous-time spatial competition duopoly model a la d'Aspremont et al. (1979). Under a sequential equilibrium, the threshold of the follower non-monotonically increases in...
Persistent link: https://www.econbiz.de/10012013675