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We provide a simple model to investigate decisions on vertical integration/separation. The key feature of this model is that more than one input is required for the final products of the local downstream monopolists. Depending on their cost structure, downstream firms' decisions on vertical...
Persistent link: https://www.econbiz.de/10010332409
We model the optimal behaviour of a multiproduct monopolist investing both in process and in product innovation in a … dynamic setting. Product innovation reduces the degree of substitutability between any two varieties. First, we find that R …
Persistent link: https://www.econbiz.de/10011651445
This paper examines how product market competition affects firms' timing of adopting a new technology as well as whether the market provides sufficient adoption incentives. It shows that adoption dates differ not only among symmetric firms but also among markets with Cournot and Bertrand...
Persistent link: https://www.econbiz.de/10010265992
An innovative firm chooses strategically whether to patent its process innovation or rely on secrecy. By doing so, the … firm manages its rival's beliefs about the size of the innovation, and affects the incentives in the product market …
Persistent link: https://www.econbiz.de/10010267007
Empirical studies on aggregate export behaviour have recently emphasised the role played by innovation as the main … force driving product differentiation and competitiveness for developed countries. These studies treat foreign innovation as … a variable that affects negatively national export shares. We incorporate the impact of foreign innovation in a standard …
Persistent link: https://www.econbiz.de/10010290660
Computerbesitzer kombinieren Komplementärguter zu einem Computersystem. Mit dem Computersystem möchten sie Daten mit anderen Nachfragern und zwischen verschiedenen Applikationen austauschen. Aus diesen Interdependenzen ergeben sich drei verschiedene Netzwerkeffekte, die im Rahmen eines...
Persistent link: https://www.econbiz.de/10010275114
The paper explores incentives for strategic vertical separation of firms in a framework of a simple duopoly model. Each firm chooses either to be a retailer of its own good (vertical integration) or to sell its good through an independent exclusive retailer (vertical separation). In the latter...
Persistent link: https://www.econbiz.de/10010333863
Regulating seaports is difficult in general, even more so for the weak regulatory institutions common in developing countries. For this reason some countries have awarded these facilities via Demsetz auctions, to the port operator that bids the lowest cargo-handling fee. A major concern with...
Persistent link: https://www.econbiz.de/10010369132
In the German automobile industry the vertical integration, as an indicator of value added, is on average low. Beyond the argument of relative high labour costs for manufacturing, several specific reasons for the level of vertical integration, linked to the flexibility of business administration...
Persistent link: https://www.econbiz.de/10011422165
We present a model of a multi-species fishery and show that (i) consumer preferences for seafood diversity may trigger a sequential collapse of fish stocks under open-access fishery, (ii) the stronger the preferences are for diversity the higher is the need for coordinated multi-species...
Persistent link: https://www.econbiz.de/10010308217