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price wars. We conclude with a general assessment concerning the contribution of game theory to industrial organization. …In this article, we consider how important developments in game theory have contributed to the theory of industrial … organization. Our goal is not to survey the theory of industrial organization; rather, we consider the contribution of game theory …
Persistent link: https://www.econbiz.de/10014024496
This paper provides a simple model of repeated extortion. In particular, we ask whether corrupt government officials' ex post opportunism to demand more once entrepreneurs have made sunk investments entails further distortion in resource allocations. We show that the inability of government...
Persistent link: https://www.econbiz.de/10010507749
Persistent link: https://www.econbiz.de/10014636328
What determines structure and profitability across markets for goods and services? Understanding the relationship between market structure and performance is critical for determining effective economic policy governing anti-trust, intellectual property, industry regulation, and international...
Persistent link: https://www.econbiz.de/10010250677
Allowing for endogenous entry in the traditional Stackelberg setup with product differentiation, leads to reverting of the standard comparative static and limiting results. Unlike in the standard Stackelberg setup with barriers to entry, the leader's profit increases when the differentiation...
Persistent link: https://www.econbiz.de/10013155838
), preferences (market size) and strategies (toughness of price competition). On the normative side, in homogeneous product markets …
Persistent link: https://www.econbiz.de/10012993391
This laboratory experiment examines whether individuals follow Nash equilibrium predictions in the two-player one-shot complete information entry game of Bresnahan and Reiss (1990) while varying payoff parameters. This entry game is regularly used in empirical industrial organization, but has...
Persistent link: https://www.econbiz.de/10013291077
This paper provides a simple model of repeated extortion. In particular, we ask whether corrupt government officials' ex post opportunism to demand more once entrepreneurs have made sunk investments entails further distortion in resource allocations. We show that the inability of government...
Persistent link: https://www.econbiz.de/10014204976
We study how the threat of entry affects financial contracting between an incumbent firm and a bank, in a stochastic and dynamic environment. Contracts are short term and public. We determine the effects of the first period financial contract on the first period outputs in face of the threat of...
Persistent link: https://www.econbiz.de/10014075803
We focus on a class of market entry in which a newly emergent market opportunity may be fruitfully exploited by no more than a commonly known, exogenously determined number of firms. Our results show significant effects of the parameters manipulated in the study, namely, the market capacity,...
Persistent link: https://www.econbiz.de/10014033598