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capacities can be larger or smaller with a duopoly than with a monopoly. If the two firms co-ordinate on a pareto dominant …
Persistent link: https://www.econbiz.de/10010278102
capacities can be larger or smaller with a duopoly than with a monopoly. If the two firms co-ordinate on a pareto dominant …
Persistent link: https://www.econbiz.de/10005772941
This paper argues that drugs are expensive not because of a lack of competition among research-based pharmaceutical companies, but because of a lack of competition in the drug approval process. Lack of competition in the drug approval process has led to exceedingly high drug development costs....
Persistent link: https://www.econbiz.de/10004995401
This paper studies how competition and vertical structure jointly determine generating capacities, retail prices, and welfare in the electricity industry. Analyzing a model in which demand is uncertain and retailers must commit to retail prices before they buy electricity in the wholesale...
Persistent link: https://www.econbiz.de/10012142389
This paper studies how competition and vertical structure jointly determine generating capacities, retail prices, and welfare in the electricity industry. Analyzing a model in which demand is uncertain and retailers must commit to retail prices before they buy electricity in the wholesale...
Persistent link: https://www.econbiz.de/10012023903
relative to A. Hence, absent strong antitrust or intellectual property protections, the A firm can leverage its monopoly into B … substitute for Netscape; in our model, this maximizes Microsoft's joint monopoly profits. Furthermore, Microsoft has no incentive … complementary products, which suggests that a monopoly internet service provider will offer net neutrality.There are other means for …
Persistent link: https://www.econbiz.de/10012732764
Allegations of market power in wholesale electricity sales are typically tested using price-cost margins. Such tests are inherently suspect in markets, such as electricity, subject to capacity constraints. In such markets, prices can vary with demand while quantity and thus cost measures remain...
Persistent link: https://www.econbiz.de/10014060636
The paper models duopolistic competition in so called monotowns: towns with one big factory where most of the citizens are employed. Workers after job go to one of the competitor shops, buy the product and bring it home. Nash equilibrium is found for linear and two-dimensional cases. The...
Persistent link: https://www.econbiz.de/10012002089
We extend the well-known spatial competition model (d'Aspremont et al., 1979) to a continuous time model in which two firms compete in each instance. Our focus is on the entry timing decisions of firms and their optimal locations. We demonstrate that the leader has an incentive to locate closer...
Persistent link: https://www.econbiz.de/10014141414
We study competition in markets with significant transport costs and capacity constraints. We compare the cases of price competition and coordination in a theoretical model and find that when firms compete, they more often serve more distant customers that are closer to plants of competitors. By...
Persistent link: https://www.econbiz.de/10011778632