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show that sectors characterized by a higher degree of competition (more substitutable products and a lower concentration of … evidence. In an oligopolistic market, firms can benefit from an increase in their product-specific protection measure, if they … are more likely to reduce profits. In competitive markets firms are therefore more likely to lobby together thereby …
Persistent link: https://www.econbiz.de/10012463876
We study why high-priced acquisitions of entrants by an incumbent do not necessarily stimulate more innovation and entry in an industry (like that of digital platforms) where customers face switching costs and enjoy network externalities. The prospect of an acquisition by the incumbent platform...
Persistent link: https://www.econbiz.de/10012481729
I discuss the antitrust suit brought by the U.S. Department of Justice against Visa and MasterCard in 1998. Banks that issue Visa cards are free to also issue MasterCard cards, and vice versa, and many banks issue the cards of both networks. However, both Visa and MasterCard had rules...
Persistent link: https://www.econbiz.de/10012465436
Health insurers increasingly compete on their covered networks of medical providers. Using data from Massachusetts' pioneer insurance exchange, I find substantial adverse selection against plans covering the most prestigious and expensive "star" hospitals. I highlight a theoretically distinct...
Persistent link: https://www.econbiz.de/10012456079
literature to introduce an empirical framework for analyzing network competition among airlines. Airlines make market entry … decisions and choose flight frequencies in the first stage, followed by price competition to attract passengers in the second …
Persistent link: https://www.econbiz.de/10015056219
We model spatial clusters of similar firms. Our model highlights how agglomerative forces lead to localized, individual … connections among firms, while interaction costs generate a defined distance over which attraction forces operate. Overlapping …
Persistent link: https://www.econbiz.de/10012462019
Tech clusters like Silicon Valley play a central role for modern innovation, business competitiveness, and economic performance. This paper reviews what constitutes a tech cluster, how they function internally, and the degree to which policy makers can purposefully foster them. We describe the...
Persistent link: https://www.econbiz.de/10012481616
We use new theory and data to study how firms endogenously form production networks across regions and countries …. Supplier and buyer relationships form depending on firms' productivity and geographic location. We characterize the normative …
Persistent link: https://www.econbiz.de/10014226151
We provide a general framework for the study of cascade effects created by interconnections between sectors, firms or … suppliers propagates through the rest of the economy as their downstream sectors/firms also suffer and transmit the negative … shock to their downstream sectors/firms. We also link the probabilities of tail events (large negative deviations of …
Persistent link: https://www.econbiz.de/10012462141
We organized business associations for the owner-managers of randomly selected young Chinese firms to study the effect … of business networks on firm performance. We randomized 2,800 firms into small groups whose managers held monthly … meetings improved supplier-client matching. (6) Firms whose managers discussed management, partners, or finance improved more …
Persistent link: https://www.econbiz.de/10012455729