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Bertrand competition in markets with network effects and switching costs
Suleymanova, Irina; Wey, Christian - Düsseldorf Institute for Competition Economics (DICE), … - 2011
We analyze Bertrand duopoly competition in markets with network effects and consumer switching costs. Depending on the … ratio of switching costs to network effects, our modelerates four different market patterns: monopolization and market … equilibrium. For large network effcts both monopoly and market sharing equilibria exist. Our welfare analysis reveals a …
Persistent link: https://www.econbiz.de/10009216331
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Remedies vs. Extreme Options in Merger Control
Dertwinkel-Kalt, Markus; Wey, Christian - Verein für Socialpolitik - VfS - 2014
We investigate how remedies in merger control affect information acquisition by an antitrust agency. We identify conditions under which an ''extreme options'' regime which does not allow for remedies improves information acquisition by the agency which increases consumer surplus. The legislator...
Persistent link: https://www.econbiz.de/10011163928
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Raising rivals’ cost through buyer power
Dertwinkel-Kalt, Markus; Haucap, Justus; Wey, Christian - In: Economics Letters 126 (2015) C, pp. 181-184
We re-examine the view that a ban on price discrimination in input markets is particularly desirable in the presence of buyer power. This argument crucially depends on an inverse relationship between downstream firms’ profits and the uniform input price. Assuming different input efficiencies...
Persistent link: https://www.econbiz.de/10011189534
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Unionization structures in international oligopoly
Pagel, Beatrice; Wey, Christian - Düsseldorf Institute for Competition Economics (DICE), … - 2012
We examine how competition in international markets affects a union's choice of wage regime which can be either uniform or discriminatory. Firms are heterogenous with regard to international competition. When unions choose their wage regimes sequentially, a discriminatory outcome becomes more...
Persistent link: https://www.econbiz.de/10009652747
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On the role of consumer expectations in markets with network effects
Suleymanova, Irina; Wey, Christian - Düsseldorf Institute for Competition Economics (DICE), … - 2010
We analyze the role of consumer expectations in a Hotelling model of price competition when products exhibit network …
Persistent link: https://www.econbiz.de/10008784594
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Market Integration and the Competitive Effects of Mergers
Baake, Pio; Wey, Christian - In: Applied Economics Quarterly (formerly: Konjunkturpolitik) 59 (2008) Supplement, pp. 27-52
This paper examines how the deepening of market integration – a characteristic feature of the so-called globalization – affects the assessment of the competitive effects of (horizontal) mergers. We distinguish between supply-side and demand-side market integration and we argue that the...
Persistent link: https://www.econbiz.de/10008784839
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Supplier Fixed Costs and Retail Market Monopolization
Caprice, Stéphane; Schlippenbach, Vanessa von; Wey, … - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2014
Considering a vertical structure with perfectly competitive upstream firms that deliver a homogenous good to a differentiated retail duopoly, we show that upstream fixed costs may help to monopolize the downstream market. We find that downstream prices increase in upstream firms' fixed costs...
Persistent link: https://www.econbiz.de/10010891249
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Supplier Fixed costs and Retail Market Monopolization
Caprice, Stéphane; von Schlippenbach, Vanessa; Wey, … - Toulouse School of Economics (TSE) - 2014
Considering a vertical structure with perfectly competitive upstream firms that deliver a homogenous good to a differentiated retail duopoly, we show that upstream fixed costs may help to monopolize the downstream market. We find that downstream prices increase in upstream firms'fixed costs when...
Persistent link: https://www.econbiz.de/10010934792
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Passive partial ownership, sneaky takeovers, and merger control
Jovanovic, Dragan; Wey, Christian - In: Economics Letters 125 (2014) 1, pp. 32-35
We analyze the impact of passive partial ownership (PPO) on horizontal mergers. We show that antitrust authorities ignoring the effects of previous PPO acquisitions invite sneaky takeovers: a PPO is strategically used prior to a full takeover to get a merger approved which is in fact detrimental...
Persistent link: https://www.econbiz.de/10010939488
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How to counter union power? Equilibrium mergers in international oligopoly
Pagel, Beatrice; Wey, Christian - Düsseldorf Institute for Competition Economics (DICE), … - 2013
We re-examine the common wisdom that cross-border mergers are the most effective merger strategy for firms facing powerful unions. In contrast, we obtain a domestic merger outcome whenever firms are sufficiently heterogeneous (in terms of productive efficiency and product differentiation). A...
Persistent link: https://www.econbiz.de/10010956734