This note analyzes the impact of indirect network effects in emerging two-sided markets on prices, quantities, profits and market entry assuming market enlargement induced by indirect network effects. Only if indirect network effects are small, the conventional results of market entry apply,...

Data on all generic drug entries in the period 1984-1994 are used to estimate which markets heterogeneous potential entrants will decide to enter. I find that organizational experience predicts entry. Firms tend to enter markets with supply and demand characteristics similar to the firm's...

This paper proposes a strategic model of entry that allows for positive and negative spillovers among firms. The model is applied to a novel dataset containing information about the store configurations of all US regional shopping centers and is used to quantify the magnitude of inter-store...

I use data on all generic drug approvals granted from 1984- 1994 to examine whether generic entrants are choosing to enter markets based on the characteristics of their current portfolio of drugs. The findings suggest that a firm's previous experience with a drug or therapy reduces its cost of...

Surveys of cartel proceedings reveal that illegal cartels usually (1) attempt to minimize the risk of detection, (2) achieve merely imperfect levels of collusion, (3) compete against some fringe firms, and (4) adjust to market entries and exits. By contrast, existing oligopoly models of...

This paper studies the effect of human capital on the regional entry of firms. An econometric model for a system of disjoint regions and frequency data is constructed, making the comparison between the regions a random discrete choice problem. Empirical evidence from Swedish labour market...

When the public provision of private goods is partial rather than universal, public supply may be supplemented by the entry of private firms in the market for the private good. The main purpose of this paper is to explore whether partial public provision helps or hinders aggregate access to the...

Private insurance firms participating in Medicare can offer up to three principal plan types: coordinated care plans (CCPs), prescription drug plans (PDPs), and private fee for service (PFFS) plans. Firms can make entry and marketing decisions separately across plan types and geographic regions....

I study the effect of sunk entry-costs on potential competition in a multi-market framework, where potential entrants have different home market profits. Although sunk-entry-costs are supposed to increase entry barriers, my experimental results suggest that firms view entry costs differently...

In 1984 GM and Toyota began the joint production of automobiles to much controversy over its anti-competitive effects. The argument for the joint production was the considerable efficiency gains GM would obtain. Since then, the anti-trust controversy has died, but a question remains: Why would...