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We study bargained input prices where up and downstream firms can choose alternative vertical partners. We apply our model to bargained airport landing fees where a number of interesting policy questions have arisen. For example, what is the impact of joint ownership of airports? Does airline...
Persistent link: https://www.econbiz.de/10013068916
Two firms produce different qualities at possibly different, constant marginal costs. They compete in quantities on a market where buyers only observe the average quality supplied. The model is a generalization of the standard Cournot duopoly, which corresponds to the special case where the two...
Persistent link: https://www.econbiz.de/10010281170
We study an asymmetric information model in which two firms are active on a market where buyers only observe the average quality supplied. Quantities and cost structures are exogenously given and firms compete in quality. Before choosing their qualities, they bargain over a perfectly enforcable...
Persistent link: https://www.econbiz.de/10010281207
This paper considers price competition in a duopoly with quality uncertainty. The established firm (the `incumbent') offers a quality that is publicly known; the other firm (the `entrant') offers a new good whose quality is not known by some consumers. The incumbent is fully informed about the...
Persistent link: https://www.econbiz.de/10009781393
This paper considers a market in which only the incumbent's quality is publicly known. The entrant's quality is observed by the incumbent and some fraction of informed consumers. This leads to price signalling rivalry between the duopolists, because the incumbent gains and the entrant loses when...
Persistent link: https://www.econbiz.de/10009404774
Two firms produce different qualities at possibly different, constant marginal costs. They compete in quantities on a market where buyers only observe the average quality supplied. The model is a generalization of the standard Cournot duopoly, which corresponds to the special case where the two...
Persistent link: https://www.econbiz.de/10003254850
We study an asymmetric information model in which two firms are active on a market where buyers only observe the average quality supplied. Quantities and cost structures are exogenously given and firms compete in quality. Before choosing their qualities, they bargain over a perfectly enforcable...
Persistent link: https://www.econbiz.de/10003254854
We adopt a framework of vertical differentiation to study the issue of Corporate Social Responsibility (CSR). We develop a model of duopoly in a two-country setting, in which firms choose the country of location, the level of CSR and finally compete in the market ¿ la Bertrand. We show that: i)...
Persistent link: https://www.econbiz.de/10014210301
This research paper investigates a duopolistic market characterized by vertical product differentiation. The study considers both product qualities and consumer preferences represented as one-dimensional intervals. The focus is on analyzing the equilibrium in a duopoly game with convex...
Persistent link: https://www.econbiz.de/10014426354
This paper investigates the competition between vertically differentiated platforms in two-sided markets. We assume the presence of two competing platforms producing either higher- or lower-quality devices for consumers. Each platform decides the price of its hardware device for consumers and...
Persistent link: https://www.econbiz.de/10012904109