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Theoretically and experimentally, we generalize the analysis of acquiringa company (Samuelson and Bazerman 1985) by allowing for competition ofboth, buyers and sellers. Naivety of both is related to the idea that higherprices exclude worse qualities. While competition of naive buyers...
Persistent link: https://www.econbiz.de/10005866465
The trend towards Internet self-regulation is driven both by gov-ernments that feel reluctant to invest in direct regulation (because offreedom of speech concerns or high cots of monitoring and enforce-ment) and by the industry that is under the threat of rising publicconcerns over content...
Persistent link: https://www.econbiz.de/10005870244
Firms selling multiple quality-differentiated products frequently alter theirproduct lines when a competitor enters the market. We present a model of multiproductmonopoly and duopoly using a general “upgrades” approach that yields a powerfulanalytical framework. We provide a simple...
Persistent link: https://www.econbiz.de/10005870254
This paper analyses price competition under product differentiation when goods are defined ina two dimensional characteristic space, and consumers do not know which firm sells whichquality. Equilibrium prices consist of two additive terms, which balance consumers' relativevaluation of goods'...
Persistent link: https://www.econbiz.de/10005868687
market increases, advertising costs escalateand there is no new entry. Advertising to sales ratios and market concentration …
Persistent link: https://www.econbiz.de/10005870260
Recent research has led to the empirical regularity that rm growth rate distributionsare heavy tailed. This nding implies that a few rms experience spectaculargrowth rates and decline, but that most rms have marginal growth rates. The literatureon high growth rms shows that high growth rms are...
Persistent link: https://www.econbiz.de/10009022146
We analyse firms' incentives to provide two-way compatibility between two network goodswith different intrinsic qualities. We study how the relative importance of verticaldifferentiation with respect to the network effect influences the price competition as well as thecompatibility choice. The...
Persistent link: https://www.econbiz.de/10005868733
This article tests the modell of Brander and lewis under ertrand and Cournot competition.
Persistent link: https://www.econbiz.de/10005840866
This paper reviews the Hotelling literature of product differentiation. The purpose of this work is to examine the impact of the market structure on price competitionand equilibrium differentiation. The existence of a general ’principle of differentiation’ is rejected. In contrast,...
Persistent link: https://www.econbiz.de/10005840975
This paper extends the standard Hotelling model with quadratic transport costs to the multi-firm case. Considering locational equilibria we show that neither holds the Principle of Maximum Differentiation - as in the duopoly model - nor does the Principle of Minimum Differentiation - as in the...
Persistent link: https://www.econbiz.de/10005841039