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homogeneous and heterogeneous product, Cournot, Tullock competition) the Nash-2 equilibrium sets are obtained and considered as … tacit collusion or strong competition in dependence of additional security considerations …
Persistent link: https://www.econbiz.de/10013024415
In many markets, a handset vendor and a service provider may enter into a tie-up for a handset to be available exclusively through the service provider. We examine when and why a service provider and a handset vendor may find this arrangement mutually profitable. We find that an exclusive tie-up...
Persistent link: https://www.econbiz.de/10013090265
game theory model to study platform competition with bonus strategies. Our analysis shows that the two types of bonuses … due to the softened platform competition. Second, when labor supply is thin, contingent bonus will be offered. In this … case, contingent bonus reduces platform profit because it intensifies platform competition and traps the platforms in a …
Persistent link: https://www.econbiz.de/10013295297
This paper investigates the impact of technical progress on the relationship between competition an investment. Using a … model of oligopoly competition with di¤erentiated products where firms invest to reduce their marginal cost of production, I … competition that maximizes investment of the industry. This feature holds also for consumer surplus and Welfare. In the model …
Persistent link: https://www.econbiz.de/10011957665
Persistent link: https://www.econbiz.de/10011664709
pricing algorithms that allow for high-frequency price changes. What are the implications for price competition? We develop a … model of price competition where firms can differ in pricing frequency and choose algorithms that autonomously react to …
Persistent link: https://www.econbiz.de/10012175360
-sharing effect that may relax competition for users, resulting in lower quality of content. More surprisingly, user surplus may also … anti-competitive effect while preserving the diversity effect. When there is competition among third parties, interplatform …
Persistent link: https://www.econbiz.de/10012861485
The Netherlands Authority for Consumers and Markets (ACM) has concluded that competition in the market for SME loans … running their businesses, it is particularly important that there is sufficient competition in the market. A lack of … competition could lead to higher funding costs for SMEs, worse service from banks, and less innovation.ACM has established that …
Persistent link: https://www.econbiz.de/10013003865
Duopolists selling differentiated products can generate less consumer surplus than a monopoly selling one of the products. In a Hotelling-type model where a monopoly supplies more than half of potential consumers, but not all, entry by a rival leads to a duopoly price that is higher than the...
Persistent link: https://www.econbiz.de/10012724037
This study investigates the profitability of a decrease in the degree of product differentiation. We consider a vertical duopoly with linear tariffs and find that both downstream firms can increase their profit after a decrease in the degree of product differentiation if each downstream firm...
Persistent link: https://www.econbiz.de/10012935743