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bargaining over rents. Disentangling them is critical to the empirical identification of countervailing power. Testable …
Persistent link: https://www.econbiz.de/10009369385
Is vertical integration of mines and power plants profitable and for whom? Based on outcomes from the research of bilateral relation between lignite mines and power plant author describes several benefits from vertical integration including strategic benefits described by Porter and benefits...
Persistent link: https://www.econbiz.de/10005837144
List prices are not completely credible as take it or leave it prices: buyers are able to seek reductions by bargaining …
Persistent link: https://www.econbiz.de/10004977849
This paper analyses the implications of bargaining between buyers and sellers on the competitive outcome in a … homogeneous good industry. Bargaining creates a competitive equilibrium in which some inefficient sellers coexist with efficient … price dispersion but transaction price uniformity. The bargaining models is not observationally equivalent to Bertrand …
Persistent link: https://www.econbiz.de/10004977892
In this paper we investigate the connection between cost asymmetries and the sustainability of collusion within the context of a infinitely repeated Cournot duopoly. We assume that firms are able to coordinate on distinct output levels than the unrestricted joint profit maximization outcome. We...
Persistent link: https://www.econbiz.de/10010905516
This article provides a framework for the analysis of cartel formation. It models the strategic interaction among firms who invest into production capacity, sell a near-homogeneous good, and are subject to unexpected demand shocks with persistence. The firms either compete or collude in prices....
Persistent link: https://www.econbiz.de/10010958041
This paper examines the effects of obtaining a strategic advantage of becoming the leader in the market on insiders’ incentives to merge and consumer welfare. We show that being the market leader is privately profitable for the merging insiders. We also show that the leading merger would...
Persistent link: https://www.econbiz.de/10011263415
While there are suggestions in applied cartel studies that price dispersion changes when cartelization of a market occurs, there are few theoretical or empirical analyses of this effect. This paper surveys the thin economic literature on the link between overt collusion and price dispersion....
Persistent link: https://www.econbiz.de/10005248358
This paper introduces a simple extensive form pricing game where firms can react to each others’ price changes before the customers arrive. The Bertrand outcome is a Nash equilibrium outcome in this game, but it is not necessarily subgame perfect. The subgame perfect equilibrium outcome...
Persistent link: https://www.econbiz.de/10005248553
The paper studies how does the size of a cartel affect the possibility that its members can sustain a collusive agreement. I obtain that collusion is easier to sustain the larger the cartel is. Then, I explore the implications of this result on the incentives of firms to participate in a cartel....
Persistent link: https://www.econbiz.de/10005385360