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specifications, full incompatibility and preemption are again observed at the equilibrium. With incompatibility, entry deterrence …
Persistent link: https://www.econbiz.de/10005134422
specifications, full incompatibility and preemption are again observed at the equilibrium. With incompatibility, entry deterrence …
Persistent link: https://www.econbiz.de/10005729356
and the possibility of side payments. With incompatibility, entry deterrence occurs for sufficiently strong network …
Persistent link: https://www.econbiz.de/10005471702
The related phenomena of learning curve and network effects are quite common in oligopolistic markets. In this context the present paper discusses the incentives of a technological leader to share its exclusive technology with potential competitors. An alliance may be preferable because partner...
Persistent link: https://www.econbiz.de/10010956803
tips to monopoly, after which entry is hard, often even too hard given incompatibility. And while switching costs can … encourage small-scale entry, they discourage sellers from raiding one another`s existing customers, and so also discourage more … aggressive entry. Because of these competitive effects, even inefficient incompatible competition is often more profitable than …
Persistent link: https://www.econbiz.de/10010605205
, it later 'tips' to monopoly, after which entry is hard, often even too hard given incompatibility. And while switching … costs can encourage small-scale entry, they discourage sellers from raiding one another’s existing customers, and so also … discourage more aggressive entry. Because of these competitive effects, even inefficient incompatible competition is often more …
Persistent link: https://www.econbiz.de/10005124423
incumbent can block entry choosing an empty compatibility interval. At the subgame perfect equilibrium, incompatibility prevails … quality segments and low costs of compatibility. Finally there is no entry if the quality segment is small and the …
Persistent link: https://www.econbiz.de/10005696808
The presence of multiple sellers in the provision of (non-substitutable) complementary goods leads to outcomes that are worse than those generated by an integrated monopoly, a problem also known as the «tragedy of the anticommons». In this paper we identify some conditions under which the...
Persistent link: https://www.econbiz.de/10010786928
We extend the theory of advertising as a quality signal, using a model where an entrant can choose to advertise by comparing its product to that of an established incumbent. Comparative advertising, comparing quality of one’s own product to that of a rival’s, empowers the latter to file for...
Persistent link: https://www.econbiz.de/10005007232
vertical product differentiation and entry. Both firms face fixed set-up costs and quality-dependent costs of production, and … compete on quality and price. With identical quality-dependent costs, the incumbent will always deter entry if possible, i ….e. if fixed costs are high. Quality will be set at a level lower than the optimal quality set if entry was accommodated. If …
Persistent link: https://www.econbiz.de/10005504715