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The present paper investigates the effects of bargaining structures and agendas on the quality differentiation … linear city model. The presence of labor union(s) and the bargaining processes (i.e., centralized vs. decentralized structure … of exogenous production costs. The results reveal that the effect of centralization on the two bargaining agendas is …
Persistent link: https://www.econbiz.de/10011105495
We set up a three-firm model of spatial competition to analyse how a merger affects the incentives for relocation, and conversely, how the possibility of relocation affects the profitability of the merger, particularly for the non-participating firm. We also consider the cases of partial...
Persistent link: https://www.econbiz.de/10010987652
This paper applies the ‘hypothetical monopolist’ test of market definition to a retail market with products differentiated by means of location and other dimensions. The test for defining the relevant product and geographic market follows the conditions required by the European Union...
Persistent link: https://www.econbiz.de/10010987682
We show how choice of the method of measuring the party positions impacts the conclusions about equilibrium positions of parties in a spatial model. We find that for the same set of voters’ ideal points we should observe either divergence or convergence to the mean, depending on the choice of...
Persistent link: https://www.econbiz.de/10010988199
This paper develops the incentives to collude in a model with spatially separated markets and quantity setting firms. We find that increases in transportation costs stabilize the collusive agreement. We also show that, the higher the demand in both markets the less likely will collusion be...
Persistent link: https://www.econbiz.de/10010988950
An isodistant point is any point on a network which is located at a predetermined distance from some node. For some competitive facility location problems on a network, it is verified that optimal (or near-optimal) locations are found in the set of nodes and isodistant points (or points in the...
Persistent link: https://www.econbiz.de/10010995417
We propose a dynamic model of an oligopoly industry characterized by spatial competition between multi-store retailers. Firms compete in prices and decide where to open or close stores depending on demand conditions and the number of competitors at different locations, and on location-specific...
Persistent link: https://www.econbiz.de/10010850126
The interpretation of the loss of utility as transport costs in address models of differentiation poses a methodological difficulty. Transport costs implicitly amounts to assume that there is a good neither included in the differentiated sector nor in the composite (numeraire) good of the...
Persistent link: https://www.econbiz.de/10010851474
Using a micro-level dataset of wind turbine installations in Denmark and Germany, we estimate a structural oligopoly model with cross-border trade and heterogeneous firms. Our approach separately identifies border-related from distance-related variable costs and bounds the fixed cost of...
Persistent link: https://www.econbiz.de/10010859355
We analyse a newspaper market where two editors first choose the political position of their newspaper, then set cover prices and advertising tariffs. We build on the work of Gabszewicz, Laussel and Sonnac (2001, 2002), whose model we take as the stage game of an infinitely repeated game, and...
Persistent link: https://www.econbiz.de/10010905448