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Most of the theoretical work on collusion and price wars assumes identical firms and an unchanging environment, assumptions which are at odds with what we know about most industries. Further that literature focuses on the impact of collusion on prices. Whether an industry can support collusion...
Persistent link: https://www.econbiz.de/10012471871
of oligopoly concerns resulting from mergers. In this paper, we provide a critique of Bork's views on merger policy from …
Persistent link: https://www.econbiz.de/10012458727
New Keynesian models of price setting under monopolistic competition involve two kinds of inefficiency: the price level is too high because firms ignore an aggregate demand externality, and when there are costs of changing prices, price stickiness may be an equilibrium response to changes in...
Persistent link: https://www.econbiz.de/10012471622
In this paper, we provide a conceptual framework for understanding the phenomenon of exclusive dealing, and we explore the motivations for and effects of its use. For a broad class of models, we characterize the outcome of a contracting game in which manufacturers may employ exclusive dealing...
Persistent link: https://www.econbiz.de/10012473176
Recent empirical evidence indicates that capital structure changes affect pricing strategies. In most cases, prices increase following the implementation of a leveraged buyout of a major firm in an industry, with the more levered firm charging higher prices on average. Notable exceptions exist...
Persistent link: https://www.econbiz.de/10012473361
We present a theory of collusive pricing in markets subject to business cycle fluctuations. In the business cycle model …
Persistent link: https://www.econbiz.de/10012473833
We consider the impact of domestic antidumping law in a two-country partial equilibrium model where domestic and foreign firms tacitly collude in the domestic market. Firms engage in an infinitely repeated game, with each period composed of a two-stage game. In the first stage each firm chooses...
Persistent link: https://www.econbiz.de/10012476032
condemnation of this practice has been the court's belief in what has come to be known as the "leverage theory" of tying: that is … power to foreclose sales in, and thereby monopolize, a second market. In recent years, however, the leverage theory has come … used by the critics of the leverage theory which all assume that the tied good market has a competitive, constant returns …
Persistent link: https://www.econbiz.de/10012476053
Persistent link: https://www.econbiz.de/10012477124
desirable ways of restricting imports.Tariffs and Quotas are also shown to be non-equivalent in such oligopoly models. A …
Persistent link: https://www.econbiz.de/10012477540