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Oligopoly as a socially embedded dilemma : an experiment
Engel, Christoph; Zhurakhovska, Lilia - 2011
From the perspective of competitors, competition may be modeled as a prisoner's dilemma. Setting the monopoly price is cooperation, undercutting is defection. Jointly, competitors are better off if both are faithful to a cartel. Individually, profit is highest if only the competitor(s) is (are)...
Persistent link: https://www.econbiz.de/10008822475
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Price Leadership and Uncertainty about Future Costs
Lemus, Jorge - 2020
Does uncertainty about future wholesale prices facilitate coordination? We address this question in the context of the Chilean retail-gasoline industry, where a policy intervention (Mepco) limited the week-to-week variation of wholesale prices. First, we show that Mepco caused a decrease in...
Persistent link: https://www.econbiz.de/10012852217
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Strategic vertical foreign investment under exchange rate uncertainty
Roy, Santanu; Viaene, Jean-Marie - 1996
This paper investigates the strategic incentives for vertical foreign investment by risk-neutral oligopolistic firms … and the effect of exchange rate uncertainty on such investment. Firms competing in a domestic final good market meet their … effect on vertical foreign direct investment and on trade in the intermediate good. Further, the incentive to undertake …
Persistent link: https://www.econbiz.de/10009620813
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My Fibre or Your Fibre? Cooperative Investment, Uncertainty and Access
Bourreau, Marc - 2014
We investigate cooperative investment in a new infrastructure and how it interacts with access obligations and demand … uncertainty. Co-investment only increases total coverage if service differentiation and/or cost savings from joint investment, in … particular due to high uncertainty, are high. Mandated access reduces incentives for co-investment not only through lower returns …
Persistent link: https://www.econbiz.de/10013064744
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Investment under Regime Uncertainty : Impact of Competition and Preemption
Nishide, Katsumasa - 2016
In this study, we analyze the investment-timing problem and introduce a model of two firms competing for investment … preemption, each of which knows in advance the time at which the economic condition that will have an impact on the investment … changes. We qualitatively show how two firms strategically optimize their investment timing, taking into account competition …
Persistent link: https://www.econbiz.de/10013008270
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Are 'FANGs' Monopolies? A Theory of Competition under Uncertainty
Petit, Nicolas - 2019
This paper lays down the rudiments of a descriptive theory of competition among the digital tech platforms known as “FANGs” (Facebook, Amazon, Netflix and Google), amidst rising academic and policy polarization over the answer to what seems to be – at least at the formulation level – a...
Persistent link: https://www.econbiz.de/10014105467
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Contested Places, Utility Pole Spaces : A Competition and Safety Framework for Analyzing Utility Pole Association Rules, Roles, and Risks
Sandoval, Catherine J.K - 2023
As climate change augurs longer wildfire seasons, safe, reliable, and competitive energy and communications markets depend on sound infrastructure and well-calibrated regulation. The humble wooden utility pole, first deployed in America in 1844 to extend telegraph service, forms the twenty-first...
Persistent link: https://www.econbiz.de/10014254996
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Sunk costs and risk-based barriers to entry
Pindyck, Robert S. - 2009 - This draft: Feb. 13, 2009
In merger analysis and other antitrust settings, risk is often cited as a potential barrier to entry. But there is little consensus as to the kinds of risk that matter- systematic versus non-systematic and industry-wide versus firm-specific - and the mechanisms through which they affect entry. I...
Persistent link: https://www.econbiz.de/10003948288
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Derivatives and default risk
Scholz, Sebastian - 2010
Upstream producers that possess market power, sell forwards with a lengthy duration to regional electricity companies (REC). As part of the liberalization of the electricity market, RECs have been privatized and exposed to a possible bankruptcy threat if spot prices have fallen below their...
Persistent link: https://www.econbiz.de/10003951795
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Uncertain demand, consumer loss aversion, and flat-rate tariffs
Herweg, Fabian - 2010
The so called flat-rate bias is a well documented phenomenon caused by consumers’ desire to be insured against fluctuations in their billing amounts. This paper shows that expectation-based loss aversion provides a formal explanation for this bias. We solve for the optimal two-part tariff when...
Persistent link: https://www.econbiz.de/10003987825