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Segmentation versus agglomeration : competition between platforms with competitive sellers

Karle, Heiko; Peitz, Martin; Reisinger, Markus - 2017

For many products, platforms enable sellers to transact with buyers. We show that the competitive conditions among sellers shape the market structure in platform industries. If product market competition is tough, sellers avoid competitors by joining different platforms. This allows platforms to...

Persistent link: https://www.econbiz.de/10011798855

Imperfect competition with costly disposal

Lenhard, Severin - 2021 - Version: April 2021

This paper studies the disposal costs' effect on consumer surplus and firms' profits. The costlier disposal, the less is disposed of, firms' competition for market shares increases, thereby benefiting consumers. Yet firms decrease their production to mitigate costs, affecting consumer surplus...

Persistent link: https://www.econbiz.de/10012510307

Flow-based market coupling : what drives welfare in Europe's electricity market design?

Voswinkel, Simon; Felten, Björn; Felling, Tim; Weber, … - 2019

Due to the call for further integration of European markets and the targeted climate goals, both European electricity systems and markets have undergone continuous changes over the last few decades. As part of these developments, the so-called Flow-Based Market Coupling (FBMC) superseded the...

Persistent link: https://www.econbiz.de/10012038962

National transmission system operators in an international electricity market

Horn, Henrik; Tangerås, Thomas P. - 2021

This paper develops a framework for analyzing the incentives of national transmission system operators (TSOs) to supply cross-border interconnection capacity in an international electricity market. Our results show that equilibrium transmission capacity is downward distorted, even in situations...

Persistent link: https://www.econbiz.de/10012584337

Fighting collusion by permitting price discrimination

Helfrich, Magdalena; Herweg, Fabian - 2016

We investigate the effect of a ban on third-degree price discrimination on the sustainability of collusion. We build a model with two firms that may be able to discriminate between two consumer groups. Two cases are analyzed: (i) Best-response symmetries so that profits in the static Nash...

Persistent link: https://www.econbiz.de/10011434582

Transparency and tacit collusion in a differentiated market

Schultz, Christian - 2002

This paper investigates the effects on tacit collusion of increased market transparency on the consumer side of a market in a differentiated Hotelling duopoly. Increasing market transparency increases the benefits to a firm from underbutting the collusive price. It also decreases the punishment...

Persistent link: https://www.econbiz.de/10011409987

Vertical integration and downstream collusion

Biancini, Sara; Ettinger, David - 2016

We investigate the effect of a vertical merger on downstream firms' ability to collude in a repeated game framework. We show that a vertical merger has two main effects. On the one hand, it increases the total collusive profits, increasing the stakes of collusion. On the other hand, it creates...

Persistent link: https://www.econbiz.de/10011482885

R&D cooperatives and market collusion : a global dynamic approach

Hinloopen, Jeroen; Smrkolj, Grega; Wagener, Florian … - 2016

We present a continuous-time generalization of the seminal R&D model of d'Aspremont and Jacquemin (American Economic Review, 1988) to examine the trade-off between the benefits of allowing firms to cooperate in R&D and the corresponding increased potential for product market collusion. We...

Persistent link: https://www.econbiz.de/10011520481

Optimal destabilization of cartels

Auer, Ludwig von; Tu Anh Pham - 2019

The literature on cartel stability sidelines antitrust policy, whereas the literature on antitrust policy tends to … neglect issues of cartel stability. This paper attempts to connect these two interrelated aspects in the context of an … augmented quantity leadership model. The cartel is the Stackelberg quantity leader and the fringe firms are in Cournot …

Persistent link: https://www.econbiz.de/10012012419

Cartel sustainability and cartel stability

Escrihuela-Villar, Marc - 2004

The paper studies how does the size of a cartel affect the possibility that its members can sustain a collusive … agreement. I obtain that collusion is easier to sustain the larger the cartel is. Then, I explore the implications of this … result on the incentives of firms to participate in a cartel. Firms will be more willing to participate because otherwise …

Persistent link: https://www.econbiz.de/10011600408