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We provide an extensive and general investigation of the effects on industryperformance - profits, social welfare and price-cost margins - of exogenously changing the number of firms in Cournot markets. This includes an in-depth exploration of the well-known trade-off between competition and...
Persistent link: https://www.econbiz.de/10012729859
We examine sales and leasing of a durable good in an asymmetric duopoly. We find that inefficient firms tend to lease more. While the low cost firm sells more than the high cost firm, the high cost firm leases more. Further, an increase in unit costs implies a higher ratio of leased units to...
Persistent link: https://www.econbiz.de/10014193120
the context of the effect of entry on firm selection in a Cournot setting. It is found that inefficient firms are more …
Persistent link: https://www.econbiz.de/10005169017
the context of the effect of entry on firm selection in a Cournot setting. It is found that inefficient firms are more …
Persistent link: https://www.econbiz.de/10005561413
We evaluate the impact on market power and efficiency of a series of mergers on three Portuguese non-life insurance … economies and high cost efficiency scores. We find that, for the period following the mergers, there is no evidence of: (i) an …
Persistent link: https://www.econbiz.de/10010856738
We evaluate the impact on market power and efficiency of a series of mergers on three Portuguese non-life insurance … economies and high cost efficiency scores. We find that, for the period following the mergers, there is no evidence of: (i) an …
Persistent link: https://www.econbiz.de/10010730048
This paper examines the efficient provision of goods in two-sided markets and characterizes optimal specific and ad-valorem taxes. We show that (i) a monopoly may have too high output compared to the social optimum; (ii) output may be reduced by imposing negative value-added taxes (subsidy) or...
Persistent link: https://www.econbiz.de/10012772273
This article analyzes endogenous efficiency gains from mergers. It considers oligopolistic homogeneous good markets and …, firms invest in cost-reducing innovation with and without mergers) and then compete in output/prices. It is found that in … homogeneous good markets, all possible mergers generate efficiency gains, and that these are most significant when R&D spillovers …
Persistent link: https://www.econbiz.de/10012922586
We present examples of cost-asymmetric duopoly games where the inefficient firm can obtain higher payoff than its efficient rival. Firms compete in a Cournot fashion and their quantities are chosen by their managers. We assume that managers are offered two types of incentive contracts, the pure...
Persistent link: https://www.econbiz.de/10013061376
This paper analyzes endogenous efficiency gains from mergers. It considers oligopolistic homogeneous good markets and … invest in cost-reducing innovation (with and without mergers) and then compete in output/prices. It is found that in … homogeneous good markets, all possible mergers generate efficiency gains, and that these are most significant when spillovers are …
Persistent link: https://www.econbiz.de/10012999173