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We visit the role of privatization in the location decision of firms in an industry where no firm can produce all varieties demanded. We demonstrate that the Nash equilibrium locations are socially optimal, in the presence of a publicly owned firm, notwithstanding the degree of privatization.
Persistent link: https://www.econbiz.de/10010743693
We provide a new rationale for bi-sourcing, which refers to the situation where a final goods producer buys an input from an outside supplier and also produces it in-house. We also show the effects of the product market competition and the implications of different and common outside input...
Persistent link: https://www.econbiz.de/10010573077
We demonstrate the sensitivity of the location of downstream firms, engaged in sequential spatial competition, to the vertical structure of an industry where no downstream firm can produce all varieties demanded.
Persistent link: https://www.econbiz.de/10008559049
This analysis is a natural follow up of continued efforts to assess the consequences of cross-border mergers in …
Persistent link: https://www.econbiz.de/10008490482
We provide a theoretical justification for bi-sourcing, which refers to thesituation where a final goods producer buys an input from an outside supplier and alsoproduces it in-house. Bi-sourcing occurs if the marginal cost of producing the input inhouseis higher than the marginal cost of outside...
Persistent link: https://www.econbiz.de/10005868579
We analyze the hitherto unstudied duopolistic interaction between a new good producer and a remanufacturer who compete for a dominant share of the market for a particular product. Each firm i spends d_i ≥ 0 on product development to sway consumers and this expenditure increases the likelihood...
Persistent link: https://www.econbiz.de/10012989063
We analyze the hitherto unstudied duopolistic interaction between a new good producer and a remanufacturer who compete for a dominant share of the market for a particular product. Each firm i spends d_i ≥ 0 on product development to sway consumers and this expenditure increases the likelihood...
Persistent link: https://www.econbiz.de/10012989862
structure in the incentives for and implications of cross-border horizontal mergers. We show that vertical integration can … increase the gains from cross-border mergers. We also demonstrate how market concentration interacts with costs in the decision … gains from cross-border horizontal mergers. Any additional gain from cross-border horizontal mergers, due to the existence …
Persistent link: https://www.econbiz.de/10010688165
We provide a new explanation for a profitable horizontal merger between Cournot oligopolists with symmetric constant returns to scale technologies and homogeneous goods. We show that a merger can be profitable if it prevents a foreign firm from undertaking FDI. Our result is due to the effect of...
Persistent link: https://www.econbiz.de/10010573062
We study a one-period model of an aggregate economy composed of cities and regions that demand vaccines designed to fight a pandemic such as Covid-19. The supply of vaccines is the outcome of Bertrand competition between two firms A and B. The marginal cost of producing the vaccine for both...
Persistent link: https://www.econbiz.de/10014030433