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In this paper, we tackle the dilemma of pruning versus proliferation in a vertically differentiated oligopoly under the assumption that some firms collude and control both the range of variants for sale and their corresponding prices, likewise a multiproduct firm. We analyse whether pruning...
Persistent link: https://www.econbiz.de/10011451580
We develop a two-stage game in which competing airlines first choose the networks of markets to serve in the first stage before competing in price in the second stage. Spillovers in entry decisions across markets are allowed, which accrue on the demand, marginal cost, and fixed cost sides. We...
Persistent link: https://www.econbiz.de/10014313556
A number of formerly regulated multiproduct industries have a transitional or permanent residual regulatory mandate to protect consumers from "excessive" prices. The legislation that deregulated most rail rates contains a statutory mandate for the regulator to protect shippers from "excessive"...
Persistent link: https://www.econbiz.de/10012480919
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We study the timing of leniency applications using a novel application of multi-spell discrete-time survival analysis for a sample of cartels prosecuted by the European Commission between 1996 and 2014. The start of a Commission investigation does not affect the rate by which conspirators apply...
Persistent link: https://www.econbiz.de/10011435719
; this is equivalent to modeling firms as an implicit cartel playing a punishment game. We show that coordination can …
Persistent link: https://www.econbiz.de/10012471622
Concentration-based screens for horizontal mergers, such as those employed in the US DOJ and FTC Horizontal Merger Guidelines, play a central role in merger analysis. However, the basis for these screens, in both form and level, remains unclear. We show that there is both a theoretical and an...
Persistent link: https://www.econbiz.de/10012481388
. Within this setting, we study four types of price-fixing agreement: (i) a segment-wide cartel in the premium submarket only …, (ii) a segment-wide cartel in the standard submarket only, (iii) two segment-wide cartels, and (iv) an industrywide cartel …-wide cartel prefers to maintain market shares at pre-collusive levels. The impact on consumer and social welfare critically …
Persistent link: https://www.econbiz.de/10012306748
The purpose of this paper is to represent in which way a stable and no negligible growth in demand can affect the level of sustainability of collusion. For the European Commission this assumption is seen as a factor that disincentives collusion and pushes to a competitive behavior. This fact...
Persistent link: https://www.econbiz.de/10011597631