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investment decisions, on network users' decision to join the network, and on welfare. We take a monopoly platform that serves a ….e. Net Neutrality regulation, will be more network users, more investment, and welfare is higher. If profit …-maximizing platform cannot charge buyers there will be more investment than without the regulation. If on top of not charging buyers …
Persistent link: https://www.econbiz.de/10012710676
(cooperation) solutions, in a model of investment timing allowing for externalities in both flow profits and investment costs. For …. Optimal cooperation involves either monopoly or duopoly investment, the latter being either symmetric or asymmetric. Finally …&D input choices, if investment synergies are large, coordination and cooperation result in the same outcomes …
Persistent link: https://www.econbiz.de/10013118642
capital. The firm is financially constrained and there are implementation lags in investment. Our model predicts that product … related to investment. Estimating price and investment equations on panel data for Swedish manufacturing plants we find … results which are qualitatively in line with these predictions, though the relation between investment and prices is stronger …
Persistent link: https://www.econbiz.de/10010128004
suppliers' profits. In the specific setting of this paper, I show that when the competition is perfect, an investment in … transmission capacity between zones (inter Transmission System Operator (TSO) investment) and an investment in production capacity … generate the same equilibrium outcome allocations. In contrast, when the competition is imperfect, an inter TSO investment and …
Persistent link: https://www.econbiz.de/10011633664
Internet Access Providers. We show that if regulation forbids settlement payments between firms, there will be under-investment …
Persistent link: https://www.econbiz.de/10014177584
Persistent link: https://www.econbiz.de/10008702070
This paper addresses the issue of how regulatory constraints affect firm s investment choices when the firm has an … option to delay investment. The RPI-x rule is compared to a profit sharing rule, which increases the x factor in case profits … go beyond a given level. It is shown that a pure price cap and profit sharing are identical in their impact on investment …
Persistent link: https://www.econbiz.de/10011507879
increases consumer surplus and total welfare if network effects are strong enough. Capacity investment increases (decreases …
Persistent link: https://www.econbiz.de/10012919302
Because society responds to increases in reliability by becoming less resilient to interruptions of critical infrastructures like electricity and information and communication technology (the vulnerability paradox), sometimes people conclude that investments in reliability have decreasing...
Persistent link: https://www.econbiz.de/10013017692
. Finally, investment spillovers reduce investment, and investment is higher than the joint-profit maximizing benchmark for the … case without spillovers and lower for the case with spillovers. -- Cost-reducing Investment ; Asymmetric Oligopoly …
Persistent link: https://www.econbiz.de/10003892448