Showing 1 - 10 of 163
locations of firms and reducing the distance between firms improve consumer welfare, through lower prices and smaller … the firms reduces transportation costs but increases the prices through the change of strategic commitments by the firms …
Persistent link: https://www.econbiz.de/10010332334
This paper investigates an asymmetric duopoly model with a Hotelling line. We find that helping a small (minor) firm can reduce both social and consumer surplus. This makes a sharp contrast to existing works showing that helping minor firms can reduce social surplus but always improves consumer...
Persistent link: https://www.econbiz.de/10010332356
We provide a theoretical framework to discuss the relation between market size and vertical structure in the railway industry. The framework is based on a simple downstream monopoly model with two input suppliers, labor forces and the rail infrastructure firm. The operation of the downstream...
Persistent link: https://www.econbiz.de/10010332400
Innovators who have developed advanced technologies, along with launching new products by themselves, often license these technologies to their rivals. When a firm launches a new product, product positioning is also an important matter. Using a standard linear city model with two firms, we...
Persistent link: https://www.econbiz.de/10010332499
We extend the well-known spatial competition model (d'Aspremont et al., 1979) to a continuous time model in which two firms compete in each instance. Our focus is on the entry timing decisions of firms and their optimal locations. We demonstrate that the leader has an incentive to locate closer...
Persistent link: https://www.econbiz.de/10011421460
We study the entry timing and location decisions of two exclusive buyer-supplier relationships in a continuous-time spatial competition model. In each relationship, the firms determine their entry timing and location, and negotiate a wholesale price through Nash bargaining. Then, the downstream...
Persistent link: https://www.econbiz.de/10012013677
Using a standard linear city model with two firms, we consider how their licensing activities following their R&D investments affect the locations of the firms and the effort levels of the R&D investments. Although recent studies show that R&D investments that may cause a large cost differential...
Persistent link: https://www.econbiz.de/10011079862
We provide a theoretical framework to discuss the relation between firm size and vertical structures. The framework is based on a Hotelling model with three downstream and three upstream firms. Each downstream firm procures its input from each upstream firm and the procurement problems affect...
Persistent link: https://www.econbiz.de/10011082596
This paper presents the development of an equilibrium theory of vertical merger that incorporates strategic behaviors in the Hotelling-type location model for the purpose of considering the relationship between the strategies of downstream firms for product differentiation and vertical...
Persistent link: https://www.econbiz.de/10011082598
We investigate a mixed market in which a state-owned, welfare-maximizing public firm competes against profit-maximizing n domestic private firms and m foreign private firms. A circular city model with quantity-setting competition is employed. We find that the equilibrium location pattern depends...
Persistent link: https://www.econbiz.de/10011095605