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This paper empirically assesses the impact of the intensity of competition on investment in new technologies within the …-U relationship between competition intensity and investment. The intermediate level of competition intensity that maximizes … investment stands at 62 percent, whereby competition intensity is measured by 1-Lerner index at the firm level. This means that …
Persistent link: https://www.econbiz.de/10010397810
In this paper, we design a theoretical model to analyze the impact of the number of firms on investment in the wireless … communications industry. Our model extends the Salop’s framework by introducing investment in quality that either reduces the … their incentives to invest in quality. The impact on the aggregate industry investment can be non-monotone. These …
Persistent link: https://www.econbiz.de/10011421623
surplus in symmetric mobile markets. When mobile services are viewed as homogeneous products under Cournot competition, we … differentiated products under Salop competition, we find an inverted-U relationship between consumer surplus and the number of mobile …
Persistent link: https://www.econbiz.de/10011577396
rivals reduce their employment, sales and investment, while their profits increase around the time of a merger. …
Persistent link: https://www.econbiz.de/10012061918
subsidies complied with EU state aid rules, both in terms of effectiveness and competition. …
Persistent link: https://www.econbiz.de/10012493038
This paper analyzes the effects of mergers on markups of non-merging rival firms in narrowly defined markets. Combining data from the European Commission's market assessments in merger decisions with production data, we use recent methodological advances in the estimation of production functions...
Persistent link: https://www.econbiz.de/10012099220
Tracking online user behavior is essential for targeted advertising and is at the heart of the business model of major online platforms. We analyze tracker-specific web browsing data to show how the prediction quality of consumer profiles varies with data size and scope. We find decreasing...
Persistent link: https://www.econbiz.de/10015061967
highlights the fact that investment in technical progress is an authentic type of competition which benefits the consumers rather … firms through investment, is high enough. Competition is, in fact, made up of two components: A static one which is known as …The relationship between technical progress and price competition is a controversial issue in economics. This paper …
Persistent link: https://www.econbiz.de/10010304268
This paper investigates the impact of technical progress on the relationship between competition an investment. Using a … competition that maximizes investment of the industry. This feature holds also for consumer surplus and Welfare. In the model … model of oligopoly competition with differentiated products where firms invest to reduce their marginal cost of production …
Persistent link: https://www.econbiz.de/10011930693
This paper investigates the incentives to invest in improving the quality (as distinguished to investment in a new … activity) in telecommunication industry using the empirical example of wireless markets. We highlight that investment … incentives are positively related to the potential for technical progress. They also depend on market structure, competition …
Persistent link: https://www.econbiz.de/10010309706