Showing 1 - 10 of 584
entrant deviates from collusion, the incumbent can strengthen punishment suing the competitor for patent infringement …
Persistent link: https://www.econbiz.de/10011818422
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
entrant deviates from collusion, the incumbent can strengthen punishment suing the competitor for patent infringement …
Persistent link: https://www.econbiz.de/10011799562
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/10003951516
; Collusion ; Entry deterrence …
Persistent link: https://www.econbiz.de/10009380269
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/10010365845
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 recent paper, Chiara Fumagalli and Massimo Motta (2006) challenge the idea that an incumbent can foreclose efficient entry in the face of scale economies by using exclusive contracts. They claim that inefficient exclusion does not arise when buyers are homogenous firms that compete...
Persistent link: https://www.econbiz.de/10013155042
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
This paper presents an experiment to test effects of sequential entry on stability of collusion in oligopoly markets …. Previous research suggests that the larger the number of firms, the harder it is to sustain collusion. We find that when groups … start off small and the entrant is informed about the history of her group, collusion is easier to sustain than in groups …
Persistent link: https://www.econbiz.de/10012713807