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Despite descriptive empirical evidence on start-up numbers and survival rates of young firms, the interaction of market entry decisions and reactions of incumbent competitors is still insufficiently understood in the entrepreneurship literature. Repeated games offer a suitable theoretical...
Persistent link: https://www.econbiz.de/10010892212
Der Einzelhandel in der Bandbreite seiner heutigen Erscheinungsformen hat auf der Angebotsseite sowie auf der Nachfrageseite in den zurückliegenden Jahrzehnten einen gravierenden Wandel vollzogen. Dabei ist eine generalisierende Beurteilung sehr schwierig, liegen doch zwischen SB-Warenhäusern,...
Persistent link: https://www.econbiz.de/10011266726
mit einer festen Marge dem traditionellen Eintritt mit anschließendem Preiswettbewerb überlegen ist, da dem etablierten … Unternehmen die Möglichkeit genommen wird, mittels der impliziten Androhung einer Preissenkung (Limit Pricing) den Markteintritt … Unternehmen zwar den Markteintritt nicht durch eine Senkung des Preises verhindern kann, dass aber eine Erhöhung des Preises bei …
Persistent link: https://www.econbiz.de/10008462119
We present a new approach to the theory of imperfect competition and apply it to study price competition among differentiated products. The central result provides general conditions under which there exists a pure strategy price equilibrium for any number of firms producing any set of products....
Persistent link: https://www.econbiz.de/10005249202
I present a class of address models of product differentiation with unit-elastic individual demand and show the existence of Nash equilibrium in prices under assumptions on utility functions and the taste and income heterogeneity across consumers. This paper complements the work by Caplin and...
Persistent link: https://www.econbiz.de/10005370867
In a model of price competition single-product ¯rms compete for consumers. Consumerspurchase a variable quantity of one of the di®erentiated goods. The paper provides results onequilibrium existence when consumers are heterogeneous in their evaluation of the di®erentiatedgoods among each...
Persistent link: https://www.econbiz.de/10005731215
Why do prices in Spain's regions fail to converge? The prime suspects for this puzzling result are differences in regional barriers to entry in retail distribution. This paper develops a Cournot-Nash model of imperfect competition to illustrate the effect of barriers on prices. A unique data...
Persistent link: https://www.econbiz.de/10005826506
The theory of "Judo Economics" describes an optimal entry strategy for small firms. Using a capacity limitation, small firms force dominant market incumbents to accommodate. In this article, we study the power of Judo economics as an entry strategy in different market environments. We find...
Persistent link: https://www.econbiz.de/10010635811
In this paper we characterize the subgame perfect Nash equilibria of a location-then-price game where firms first choose locations and after that compete for prices in two subsequent periods. Locations are thus seen as long term commitments. There are two types of consumers, each with different...
Persistent link: https://www.econbiz.de/10011087127
Persistent link: https://www.econbiz.de/10004998650