Showing 1 - 10 of 1,799
This paper provides a simple reduced-form framework for analyzing merger decisions in the presence of asymmetric information about firm types, building on Shapiro's (1986) oligopoly model with asymmetric information about marginal costs. We employ this framework to examine what types of firms...
Persistent link: https://www.econbiz.de/10012723444
This paper develops an oligopoly model with firms that may potentially be state-owned or privately owned, and solves it for different cases in which the number and ownership of those firms vary. The results are then compared in terms of total surplus and consumer surplus, and this comparison...
Persistent link: https://www.econbiz.de/10012734325
Recent evidence shows that developing countries and transition economies are increasingly privatising their public firms and at the same time experiencing rapid growth of inward foreign direct investment (FDI). In an international mixed oligopoly, we analyse the interaction between privatisation...
Persistent link: https://www.econbiz.de/10012730088
We study a new real options model of oligopolistic entry based on empirical evidence of demand for a new product growing over time and eventually falling. Yet, firms do not know ex ante when this can occur, which creates incentives to update information by delaying irreversible entry. By...
Persistent link: https://www.econbiz.de/10012721949
The proliferation of alternative information sources has reduced the relevance of corporate annual reports. This paper examines economic outcomes in an oligopolistic industry as investors become better informed but financial reports convey a smaller portion of the total information. Results show...
Persistent link: https://www.econbiz.de/10012725328
Investment in information acquisition can be used strategically by banks as a commitment device to augment market power. A static two-period economy with informationally heterogeneous banks is analysed. Information acquisition limits asymmetries of information and competitors' rents ex post. If...
Persistent link: https://www.econbiz.de/10012729407
This paper analyzes how financial constraints affect equilibrium payoffs and behaviors in repeated Cournot games … organization, may not be sustained in any equilibrium. Furthermore, playing the Cournot equilibrium in each period need not be an …
Persistent link: https://www.econbiz.de/10012731589
This paper focuses on the strategic role of corporate venture-financing carried out by a corporation (a headquarter). When the headquarter finances a venture through its corporate venture-financing arm, it can increase the complementarity between products of the venture and the headquarter. The...
Persistent link: https://www.econbiz.de/10012735650
We investigate the impact of vertical mergers on upstream firms' ability to sustain tacit collusion in a repeated game. We identify several effects and show that the net effect of vertical integration is to facilitate collusion. Most importantly, vertical mergers facilitate collusion through the...
Persistent link: https://www.econbiz.de/10012736613
This paper examines the measurement of non-financial assets in imperfectly competitive markets and considers the effect of alternative measurements on firms' investing and operating activities. We analyze a duopoly where each firm manufactures, reports, and thereafter sells its inventory. We...
Persistent link: https://www.econbiz.de/10012773606