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I set up an endogenous merger model in which, whenever fi rms agree to join in a coalition, the new entity acquires the … leadership in a symmetric Cournot oligopoly. I first explore the case of a single merger and show that, despite being such merger … coalition or an n - 1-fi rm coalition. I then allow for multiple coalitions and show that merger waves often occur as a fi rms …
Persistent link: https://www.econbiz.de/10012963274
This chapter first reviews the economic theory underlying the unilateral competitive effects of mergers, focusing on …
Persistent link: https://www.econbiz.de/10014026811
We investigate the effects of passive backward acquisitions in their efficient upstream supplier on downstream firms' ability to collude in a dynamic game of price competition with homogeneous goods. We find that passive backward acquisitions impede downstream collusion. The main driver of our...
Persistent link: https://www.econbiz.de/10012297609
Persistent link: https://www.econbiz.de/10013348108
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...
Persistent link: https://www.econbiz.de/10012894283
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...
Persistent link: https://www.econbiz.de/10012838808
This paper analyses the quality provision of interrelated market firms under different market structures both theoretically and empirically. A theoretical model is built, where a media firm offers newspapers in a primary market and advertising space in the secondary market. Furthermore, the...
Persistent link: https://www.econbiz.de/10014076054
We develop a model of endogenous network formation in order to examine the incentives for R&D collaboration in a mixed oligopoly. Our analysis reveals that the complete network, where each firm collaborates with all others, is uniquely stable, industry-profit maximizing and efficient. This...
Persistent link: https://www.econbiz.de/10014219137
This paper examines a declining duopoly, where firms must choose when to exit from the market. The exogenous shock in the industry follows an exponential jump-diffusion process. We find Markov-perfect equilibria in firms' exit strategies. With small asymmetry in the firm-specific parameters,...
Persistent link: https://www.econbiz.de/10012721681
In spatial competition iuml;B01rms are likely to be uncertain about consumer locations when launching products either because of shifting demographics or of asymmetric information about preferences. Realistically distributions of consumer locations should be allowed to vary over states and need...
Persistent link: https://www.econbiz.de/10012724699