Showing 1 - 10 of 122
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 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
Ignoring strategic interactions among final goods producers, the extant theoretical literature shows that lower costs of imported inputs increase the exports of the final goods using those inputs. Hence, it does not explain the empirically relevant positive relationship between the costs of...
Persistent link: https://www.econbiz.de/10014420158
This paper compares profits and consumer surplus under non-cooperation and collusion in the product market when the …-cooperation or product market collusion depends on the R\&D productivity. If the market size is sufficiently small then firms are … always better off under product market collusion. If the market size is moderate (relatively large) then the firms are better …
Persistent link: https://www.econbiz.de/10005412980
This paper compares profits and consumer surplus under non-cooperation and collusion in the product market when the … product market collusion depends on the R&D productivity. If the market size is sufficiently small then firms are always … better off under product market collusion. If the market size is moderate (relatively large) then the firms are better off …
Persistent link: https://www.econbiz.de/10005636076
We consider the effects of product market cooperation on R&Dinvestment, profits, consumer surplus and welfare. We show that though R&Dinvestment, consumer surplus and social welfare may be higher or lower underproduct market cooperation than product market competition, industry profit isalways...
Persistent link: https://www.econbiz.de/10005868776
We study the implications of credit constraints for the sustainability of product market collusion in a bank … degree of collusion, but a substantial increase keeps it unaffected relative to the no-constraint case. A permanent adverse … demand shock in this setup does not affect the possibility of collusion, but may aggravate financing constraints and …
Persistent link: https://www.econbiz.de/10011587934
In developing countries undergoing liberalising economic reforms, there are typically local incumbents facing the loss of protection. Strategic lobbying by such firms for a price-capping regulatory regime is, under certain conditions, one way in which they can deter entry by competitors who are...
Persistent link: https://www.econbiz.de/10005561376
In developing countries undergoing liberalising economic reforms, there are typically local incumbents facing the loss of protection. Strategic lobbying by such firms for a price-capping regulatory regime is, under certain conditions, one way in which they can deter entry by competitors who are...
Persistent link: https://www.econbiz.de/10005181770
In developing countries undergoing liberalising reforms, there are typically local incumbents facing the loss of protection. Strategic lobbying by such firms for a price-capping regulatory regime can deter entry. We show that a regulatory price can be set such that the net profit of the entrant...
Persistent link: https://www.econbiz.de/10005398518