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entrant deviates from collusion, the incumbent can strengthen punishment suing the competitor for patent infringement …
Persistent link: https://www.econbiz.de/10011818422
entrant deviates from collusion, the incumbent can strengthen punishment suing the competitor for patent infringement …
Persistent link: https://www.econbiz.de/10011799562
This paper analyzes optimal cross-licensing arrangements between incumbent firms in the presence of potential entrants. The optimal cross-licensing royalty rate trades off incentives to sustain a collusive outcome vis-a-vis incentives to deter entry with the threat of patent litigation. We show...
Persistent link: https://www.econbiz.de/10011873750
This paper develops a model of successive oligopolies with endogenous market entry, allowing for varying degrees of product differentiation and entry costs in both markets. Our analysis shows that the downstream conditions dominate the overall profitability of the two-tier structure while the...
Persistent link: https://www.econbiz.de/10014218980
of sustainability of collusion. For the European Commission this assumption is seen as a factor that disincentives … collusion and pushes to a competitive behavior. This fact maybe is not so obvious and I have shown that what is important is the … implements collusion before and after entry as a subgames perfect equilibrium. The final conclusion is that demand growth …
Persistent link: https://www.econbiz.de/10014110753
strategic merger, agency cost, and collusion in a multimarket exit game.Cross-market spillovers with endogenous duration and the … declining markets. Under certain conditions, multimarket contact might facilitate collusion in a multimarket exit game where …
Persistent link: https://www.econbiz.de/10012968283
This paper analyzes optimal cross-licensing arrangements between incumbent firms in the presence of potential entrants. The optimal cross-licensing royalty rate trades off incentives to sustain a collusive outcome vis-a-vis incentives to deter entry with the threat of patent litigation. We show...
Persistent link: https://www.econbiz.de/10012912373
incumbents' launch of the fighting brands can be rationalized only as a breakdown of tacit collusion. In the absence of entry the …-end competition made such semi-collusion more difficult to sustain because of increased business stealing incentives. Consumers gained …
Persistent link: https://www.econbiz.de/10012922086
Incumbent firms have two basic possibilities to improve their competitive position in the product market: investment in R&D and the creation of entry barriers to the disadvantage of potential rivals, e.g. through lobbying activities, campaign contributions, bribes or the adoption of incompatible...
Persistent link: https://www.econbiz.de/10013139546
In a model of repeated Cournot competition under complete information, I show how the existence of a fringe of managerial firms affects the stability of a cartel of strict profit-maximizing firms. There always exists a critical dimension of the fringe that makes the cartel unstable, and this...
Persistent link: https://www.econbiz.de/10013157892