Showing 1 - 10 of 30,430
This article analyzes the strategic decisions of firms whether to establish and adhere to a cartel when they can also shape competition by investing into production capacity while being subject to unexpected demand shocks with persistence. The model shows that a negative demand shock can...
Persistent link: https://www.econbiz.de/10010126878
Persistent link: https://www.econbiz.de/10013071704
-competitive. To study the effects of mergers, we rewrite a game with simultaneous price and cost-reducing investment choices as one …
Persistent link: https://www.econbiz.de/10011798644
This article provides a framework for the analysis of cartel formation. It models the strategic interaction among firms who invest into production capacity, sell a near-homogeneous good, and are subject to unexpected demand shocks with persistence. The firms either compete or collude in prices....
Persistent link: https://www.econbiz.de/10010343755
Persistent link: https://www.econbiz.de/10010202145
This study investigates the strategic disclosure of a downstream firm’s information regarding cost-reducing investment … convey an aggressive investment (i.e., lower marginal costs) to a rival downstream firm when the products are sufficiently … differentiated. Moreover, we show that the downstream firm may disclose its information and pursue its investment at a minimum level …
Persistent link: https://www.econbiz.de/10013247816
We study a differentiated product market in which an investor initially owns a controlling stake in one of two competing firms and may acquire a non-controlling or a controlling stake in a competitor, either directly using her own assets, or indirectly via the controlled firm. While industry...
Persistent link: https://www.econbiz.de/10008842306
process R&D and on the product market. We examine how a merger affects the output, investment, and profits of firms, whether …
Persistent link: https://www.econbiz.de/10003921808
We study a differentiated product market in which an investor initially owns a controlling stake in one of two competing firms and may acquire a non-controlling or a controlling stake in a competitor, either directly using her own assets, or indirectly via the controlled firm. While industry...
Persistent link: https://www.econbiz.de/10009011193
In this paper, we highlight new conditions under which R&D agreements may have anti-competitive effects. We focus on cases where two firms compete with each other and with a competitive fringe. R&D activities need a specific input available to all firms on a common market, the price of which...
Persistent link: https://www.econbiz.de/10009380269