Merger value is frequently evaluated in single market contexts without considering possible gains stemming from firms' multimarket presence. This study concentrates on the question through which channels, and of which magnitude, mergers among multimarket firms create incremental value. We...

Firms in traditional markets often compete in output à la Cournot. In this paper, we consider Cournot competition between platforms in a two-sided market. We find that the markup and markdown terms are distorted toward zero for greater levels of platform competition and for greater levels of...

We propose a framework of utility competition (UC), and we provide the intuition why price competition (PC), quantity competition (QC) and UC differ, and prove it by using a nonlinear demand system. If the network externality is positive, then PC is the most efficient with the lowest equilibrium...

This paper develops the theory of a U relation between seller concentration and R&D investment and integrates the new theory with the traditional expectation of an inverted-U relation. The paper illustrates the U relation, and the integrated U and inverted-U relations, for a single type of R&D...

The integration can be used in a strategic way to weaken the short-term competition, by raising the rivals’ costs, or long term - by increasing input costs, to prevent potential competitors. It represents the unification of production, distribution, sales and/or any other economic processes...

If managers maximize the payoffs of their shareholders rather than firm profits, then it may be anticompetitive for a shareholder to own competing firms. This is because a manager?s objective function may place weight on profits of competitors who are held by the same shareholder. Recent...

This paper is primarily concerned with inter-firm heterogeneity. By revisiting Ricardian economics and, in particular, introducing and applying the principles of comparative advantage to strategy inquiry, it advances current theoretical understanding of the phenomenon. Moreover, by introducing...

Our study provides empirical insights into the extent to which differential market demographics and differential competition environments affect product prices. Using big data, we find that price variations are caused mainly by differential competitive environments. More specifically, we find...

In the past decade, the Creator Economy has witnessed unprecedented growth. This dynamic ecosystem thrives on a multi-sided business model, connecting content creators, users, and advertisers. However, matching the needs of different stakeholders is a complex challenge, as evidenced by the...

Riley (1979)'s reactive equilibrium concept addresses problems of equilibrium existence in competitive markets with adverse selection. The game-theoretic interpretation of the reactive equilibrium concept in Engers and Fernandez (1987) yields the Rothschild-Stiglitz (1976)/Riley (1979)...