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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
Der vorliegende Beitrag zeigt, dass die Festlegung der Fertigungstiefe in der Gegenstromplanung von Strategien kein stringentes Instrument der Unternehmensführung ist. Die Top-Down und Bottom-Up Analyse über die hierarchischen Ebenen der Unternehmens-, Wettbewerbs- und Funktionalstrategie...
Persistent link: https://www.econbiz.de/10011422154
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
In this work we discuss the impact of the new ICT techno-economic paradigm upon the vertical and horizontal boundaries of the firm and ask whether the change in the sources of competitive advantage has resulted in changes in the size distribution of firms and also in the degree of concentration...
Persistent link: https://www.econbiz.de/10010328565
We provide a theoretical framework to discuss the relation between market size and vertical structure in the railway industry. The framework is based on a simple downstream monopoly model with two input suppliers, labor forces and the rail infrastructure firm. The operation of the downstream...
Persistent link: https://www.econbiz.de/10010332400
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