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Consider a market with switching costs that is initially served by a monopolistic incumbent. How can a competitor successfully enter this market? We show that an offer to undercut the incumbent by a fixed margin serves this purpose. This strategy dominates traditional entry where the entrant...
Persistent link: https://www.econbiz.de/10010300418
Persistent link: https://www.econbiz.de/10012084172
Consider a market with switching costs that is initially served by a monopolistic incumbent. How can a competitor successfully enter this market? We show that an offer to undercut the incumbent by a fixed margin serves this purpose. This strategy dominates traditional entry where the entrant...
Persistent link: https://www.econbiz.de/10008462119
Oil price indexing is a peculiar feature of the natural gas markets in Germany and other European countries. It is closely linked to the existence of local monopolies (at least de facto) and of the so called "take-or-pay" (TOP) contracts. After discussing the relation between these features and...
Persistent link: https://www.econbiz.de/10008462120
Persistent link: https://www.econbiz.de/10009269861
Oil price indexing is a peculiar feature of the natural gas markets in Germany and other European countries. It is closely linked to the existence of local monopolies (at least de facto) and of the so called takeorpayʺ (TOP) contracts. After discussing the relation between these features and...
Persistent link: https://www.econbiz.de/10003415488
Consider a market with switching costs that is initially served by a monopolistic incumbent. How can a competitor successfully enter this market? We show that an offer to undercut the incumbent by a fixed margin serves this purpose. This strategy dominates traditional entry where the entrant...
Persistent link: https://www.econbiz.de/10003862973
Persistent link: https://www.econbiz.de/10003638798
Oil price indexing is a peculiar feature of the natural gas markets in Germany and other European countries. It is closely linked to the existence of local monopolies (at least de facto) and of the so called quot;take-or-payquot; (TOP) contracts. After discussing the relation between these...
Persistent link: https://www.econbiz.de/10012750111
In this paper a network model is developed in which three players sequentially choose their strategies. In the first stage, a profit–maximizing network firm chooses the price and thus the size of the network. In the second stage the consumers decide whether to join in the network or not. In...
Persistent link: https://www.econbiz.de/10009779339