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I consider a Vickrey-Salop model of spatial product differentiation with quasi-linear utility functions and contrast two modes of production, the proprietary model where entrepreneurs sell software to the users, and the open source model where users participate in software development. I show...
Persistent link: https://www.econbiz.de/10014213412
countervailing power, via an increase in downstream concentration, depends on the competition regime between airlines and whether … airports can price discriminate: airline concentration reduces the landing fee when downstream competition is in quantities …, but if downstream competition is in prices only where airports cannot discriminate. Furthermore, only in a specific case …
Persistent link: https://www.econbiz.de/10013068916
We examine the interplay of endogenous vertical integration and cost-reducing downstream investment in successive oligopoly. We start from a linear Cournot model to motivate our more general reduced-form framework. For this general framework, we establish the following main results: First,...
Persistent link: https://www.econbiz.de/10012705917
behavior of nondiversified competitors beyond effects on risk due to competition. Empirical results obtained from the U …
Persistent link: https://www.econbiz.de/10013114769
general there is no unique optimal organization structure over time - when product market competition is intense …
Persistent link: https://www.econbiz.de/10012719892
We analyze the effect of competition on price dispersion in the airline industry and show that the outcome hinges on … redefining the extent of a market. Using panel data from 1993 to 2013, an increase in competition has a positive effect on price … airlines compete more aggressively in the lower tail of the price distribution in one-way markets due to higher markups …
Persistent link: https://www.econbiz.de/10012962070
We provide a simple model to investigate decisions on vertical integration/separation. The key feature of this model is that more than one input is required for the final products of the local downstream monopolists. Depending on their cost structure, downstream firms' decisions on vertical...
Persistent link: https://www.econbiz.de/10003929957
We examine the interplay of endogenous vertical integration and costreducing downstream investment in successive oligopoly. We start from a linear Cournot model to motivate our more general reducedform framework. For this general framework, we establish the following main results: First,...
Persistent link: https://www.econbiz.de/10002202366
Contractual inefficiencies within supply chains increase an input price above its marginal cost, therefore they are considered detrimental to consumer surplus. We argue that such inefficiencies may be beneficial to consumers in quality-differentiated markets where the "finiteness property"...
Persistent link: https://www.econbiz.de/10013091101
This paper first introduces an approach relying on market games to examine how successive oligopolies do operate between downstream and upstream markets. This approach is then compared with the traditional analysis of oligopolistic interaction in successive markets. The market outcomes resulting...
Persistent link: https://www.econbiz.de/10012730328