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We analyze the behavior of producers who compete through price competition in a social environment from a sociological point of view. The standard model of Bertrand price competition is enriched with producers who follow a "Win Cooperate, Lose Defect" (WCLD) strategy. This strategy is a...
Persistent link: https://www.econbiz.de/10010232132
strategic industrial policy and show that an advertising subsidy is the optimal strategic policy irrespective of the form of …
Persistent link: https://www.econbiz.de/10014198063
We study the following game: each agent i chooses a lottery over nonnegative numbers whose expectation is equal to his budget b_i. The agent with the highest realized outcome wins (and agents only care about winning). This game is motivated by various real-world settings where agents each choose...
Persistent link: https://www.econbiz.de/10013076649
In this paper, we examine how strategic interactions affect airline network. We develop a three stage duopoly game: at … stage 1 airlines determines their network structure (linear versus hub-and-spoke). At stage 2 they decide on their … capacities, and at stage 3 firms compete in quantities. The main feature of the model is that firms have to decide on network …
Persistent link: https://www.econbiz.de/10005510359
Network shares and retail prices are not symmetric in the telecommunications market with multiple bottlenecks which …
Persistent link: https://www.econbiz.de/10011346476
Network shares and retail prices are not symmetric in the telecommunications market with multiple bottlenecks which …
Persistent link: https://www.econbiz.de/10011560718
This paper studies whether a regulator needs to correct the route structure choice by carriers with market power in the presence of congestion externalities, in addition to correct their pricing. We account for passenger benefits from increased frequency, passenger connecting costs, airline...
Persistent link: https://www.econbiz.de/10010225784
In this paper we develop a framework for analyzing the behavior of hospitals under selective contracting. We use a unique data set on hospitals in the Southern California region from 1990?1993 to estimate the factors affecting the actual negotiated prices paid to hospitals by two major HMOs. We...
Persistent link: https://www.econbiz.de/10014183135
We introduce a flexible model of telecommunications network competition with non-uniform calling patterns, which …
Persistent link: https://www.econbiz.de/10013067671
subsidy allows to achieve maximum efficiency. We show that, while the ownership of the controlled firm is irrelevant when … optimal subsidy to restore the first-best allocation, irrespective of the mode of competition. The paper also focuses on the … extent to which a subsidy is needed to attain the social optimum, highlighting the equivalence between a price (quantity …
Persistent link: https://www.econbiz.de/10011526650