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This paper estimates a dynamic, structural model of entry and exit in an oligopolistic industry and uses it to quantify …. Entry costs faced by potential entrants, fixed costs faced by incumbent producers, and the toughness of short-run price … the dentist industry allow the entry cost to differ for geographic markets that were designated as Health Professional …
Persistent link: https://www.econbiz.de/10010195032
We use a dynamic oligopoly model of entry and exit to evaluate how entry regulations affect profitability and market … stores in Sweden, we find that the average entry costs for small and large stores are 10 and 18 percent lower, respectively …, in markets with liberal compared with restrictive regulations. Counterfactual simulations show that lower entry costs in …
Persistent link: https://www.econbiz.de/10010206790
The U.S. and EU Merger Guidelines strongly emphasize the relevance of the "ease of entry" argument in merger … evaluations. Up to now, very little is known empirically about how mergers affect entry and exit, and the resulting number of … dominated mergers. Interestingly, we also find that mergers foreclose potential entry in other product markets and reduce the …
Persistent link: https://www.econbiz.de/10011481190
We explore how pricing dynamics in the European airline industry vary with the competitive environment. Our results highlight substantial variations in pricing dynamics that are consistent with a theory of intertemporal price discrimination. First, the rate at which prices increase towards the...
Persistent link: https://www.econbiz.de/10010358240
This article studies competition in markets with transport costs and capacity constraints. We compare the outcomes of price competition and coordination in a theoretical model and find that when firms compete, they more often serve more distant customers who are closer to the competitor's plant....
Persistent link: https://www.econbiz.de/10011906924
We study competition in markets with significant transport costs and capacity constraints. We compare the cases of price competition and coordination in a theoretical model and find that when firms compete, they more often serve more distant customers that are closer to plants of competitors. By...
Persistent link: https://www.econbiz.de/10011724001
We study competition in markets with significant transport costs and capacity constraints. We compare the cases of price competition and coordination in a theoretical model and find that when firms compete, they more often serve more distant customers that are closer to plants of competitors. By...
Persistent link: https://www.econbiz.de/10011778632
Since the late 90s,, European industries of electricity and gas have been subject to a process of concentration at both horizontal and vertical levels. At first glance, this consolidation is quite natural since, on the one hand, the application of European directives to open to competition has...
Persistent link: https://www.econbiz.de/10011166300
The recent proposals for the acquisition of Endesa by Gas Natural and E.On has raised a considerable debate. One of the interesting issues under discussion is whether the resulting entity will be too large for the market or not, in terms of its potential exercise of market power and, in this...
Persistent link: https://www.econbiz.de/10012707523
A Cournot oligopoly in which firms face incomplete information with respect to production capacities is studied. For the case where the firms’ capacities are stochastically independent, the functional form of equilibrium strategies is derived. If inverse demand is concave, a unique symmetric...
Persistent link: https://www.econbiz.de/10010312734