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I model the strategic interaction between firms, that face decisions on investment, forward contracts and spot market quantities. For an investment decision that takes place after firms have contracted forward but before firms compete on the spot market (medium term investment), competition...
Persistent link: https://www.econbiz.de/10010426046
difference in average total outputs across data aggregation and information settings. However, we observe more collusion when …
Persistent link: https://www.econbiz.de/10010530643
We investigate the possibility for two vertically related firms to at least partially collude on the wholesale price over an in.nite horizon to mitigate or eliminate the e¤ects of double marginalisation, thereby avoiding contracts which might not be enforceable. We characterise alternative...
Persistent link: https://www.econbiz.de/10011674459
We analyze spying out a rival's price in a Bertrand market game with incomplete information. Spying transforms a simultaneous into a robust sequential moves game. We provide conditions for profitable espionage. The spied at firm may attempt to immunize against spying by delaying its pricing...
Persistent link: https://www.econbiz.de/10011962353
This paper studies the effect of forward contracts on the stability of collusion among firms, competing in supply … functions on the spot market. A forward market can increase the range of discount factors which allow to sustain collusion. On … the contrary, collusion is destabilised when a potential deviator sells a significant amount forward. Results do not …
Persistent link: https://www.econbiz.de/10011968922
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
policy. We address four core subject areas: market power, collusion, mergers between competitors, and monopolization. In each …
Persistent link: https://www.econbiz.de/10014023495
information, our data confirm the well-known result that duopoly players achieve, on average, partial collusion. However, as soon …
Persistent link: https://www.econbiz.de/10013295651
constrained. We show that collusion sustainability is non-monotonic in the size of the capacity constrained firm, which has little …
Persistent link: https://www.econbiz.de/10013473721