In this paper we investigate whether markets with heterogeneous network externalities can belocked-in by old technologies even if superior technologies are available. Heterogeneous networkexternalities are present when some consumers care more about the size of the market share of agood than...

We consider licensing with a patent competition for a non-drastic process innovation among firms competing in a Cournot market. We study whether licensing improves social welfare, after taking rent dissipation into account. For licensing auction, welfare worsens for minor innovations and...

Algorithms are the fundamental ingredient of online businesses such as search engines, marketplaces, peer-to peer platforms and social networks. They have already deeply affected the way individuals shop, communicate, and interact with one another. In pursuit of automation-driven efficiencies...

Around the start of this new millennium, scholars in the operations management/operations research field started to make important contributions to the study of price competition models. In this tutorial, we review these contributions, and partition them into five broad areas. Most of the...

This paper proposes a spatial model of imperfect competition in markets with selection to investigate whether imperfect competition exacerbates or offsets inefficiencies caused by selection. We find that no degree of imperfect competition achieves the first-best efficient allocation. This holds...

Fixed telephony has long been a fundamentally important market for European telecommunications operators. The liberalisation and the introduction of regulation in the end of the 1990s, however, allowed new entrants to compete with incumbents at the retail level. A rapid price decline and a...

This paper estimates sustainable coverage and competitive effects of entry for Swiss newspaper sellers which sell composite goods, including a range of other products such as food and near-food items. It utilizes the applied entry threshold ratio methodology from Bresnahan and Reiss (1991),...

To study the coexistence of two different ownership forms within an industry, I develop a simple model of competition between one forprofit and one nonprofit firm. The two firms have different objectives and face different constraints due to their choice of ownership status. Assuming...

We empirically test the hypothesis that the discounts offered by firms to consumers who purchase tickets in advance increase with the intensity of competition. We develop a new measure of competition for which we use the proximity (in departure time) of a given flight to its competitors to infer...