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We analyze differentiated retail industries where shops engage in two-stage competition with respect to opening hours and prices. We explore the effects of consumers' shopping time flexibility by comparing bi-directional consumers with forward- or backward-oriented consumers, who can either...
Persistent link: https://www.econbiz.de/10014028513
Shaked and Sutton (1982) and Gelman and Salop (1983) are best remembered for their neat conclusions: a limited quality or limited capacity is an effective tool to relax competition and facilitate entry in a market. We aim at comparing the respective merits of these two strategic commitments. We...
Persistent link: https://www.econbiz.de/10012720164
When firms set prices and face entry costs, efficiency in production and in entry are not simultaneously achieved, generating the possibility that regulatory interventions can lead to efficiency enhancements. We show through the Bertrand model that in markets with public entry and regular...
Persistent link: https://www.econbiz.de/10013115420
We examine incentives of bottleneck facility holders to manipulate access charge accounting in free entry downstream markets. We consider the situation wherein one firm holds an upstream bottleneck facility and new entrants use it at the regulated price (access fee) to provide final products....
Persistent link: https://www.econbiz.de/10009579360
Using a duopoly model with symmetric retailers, we show that retailer strategies regarding opening hours and quality choices of goods vary depending on the cost structure of the quality investment in goods. In the case of the cost remaining constant regardless of the length of opening hours, a...
Persistent link: https://www.econbiz.de/10011110681
The paper addresses the question of pricing access to the network facilities of an incumbent firm after deregulation …
Persistent link: https://www.econbiz.de/10014035273
We show in a simple model of entry with sunk cost, that a regulator prefers limiting the output, or capacity, of the incumbent firm rather than imposing a "Minimum Quality Standard" in order to help the entrant to provide high quality. As a by-product, our analysis makes a contribution to the...
Persistent link: https://www.econbiz.de/10014213065
We investigate the impact of an environmental award in a Bertrand duopoly with green consumers considering a three-stage game. First, the regulator designs the environmental contest. Second, firms choose their green investments, and the winner of the contest is awarded. Third, firms compete in...
Persistent link: https://www.econbiz.de/10015415097
In the framework of a vertically differentiated mixed duopoly, with uncovered market and costless quality choice, we study the existence of a price equilibrium when a welfare-maximizing public firm producing low quality goods competes against a profit-maximizing private firm producing high...
Persistent link: https://www.econbiz.de/10013004575
We show that the prediction of strategic connectivity breakdowns under a receiving-party-pays system and discrimination between on and off-net prices does not hold up once more than two mobile networks are considered. Indeed, if there are at least three competing networks and enough utility is...
Persistent link: https://www.econbiz.de/10013053578