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I model the strategic interaction between firms, that face decisions on investment, forward contracts and spot market quantities. For an investment decision that takes place after firms have contracted forward but before firms compete on the spot market (medium term investment), competition...
Persistent link: https://www.econbiz.de/10010426046
We run a market experiment where firms can choose not only their price but also whether to present comparable offers. They are faced with artificial demand from consumers who make mistakes when assessing the net value of products on the market. If some offers are comparable however, some...
Persistent link: https://www.econbiz.de/10010433911
qualitative analysis remains inconclusive, as some factors tend to favour collusion while others make collusion more difficult to …
Persistent link: https://www.econbiz.de/10008667016
This paper analyzes exclusionary conduct of platforms in two-sided markets. Motivated by recent antitrust cases against shopping centers introducing radius restrictions on their tenants, we provide a discussion of the likely positive and normative effects of exclusivity clauses, which prevent...
Persistent link: https://www.econbiz.de/10011283647
In a setting where retailers and suppliers compete for each other by offering binding contracts, exclusivity clauses serve as a competitive device. As a result of these clauses, firms addressed by contracts only accept the most favorable deal. Thus the contract-issuing parties have to squeeze...
Persistent link: https://www.econbiz.de/10010227309
This paper studies the welfare consequences of a vertical merger that raises rivals costs when downstream competition is à la Cournot between firms with constant asymmetric marginal costs. The main result is that such a vertical merger can nevertheless improve welfare if it involves a...
Persistent link: https://www.econbiz.de/10011410253
Incumbent firms have two basic possibilities to improve their competitive position in the product market: investment in R&D and the creation of entry barriers to the disadvantage of potential rivals, e.g. through lobbying activities, campaign contributions, bribes or the adoption of incompatible...
Persistent link: https://www.econbiz.de/10013139546
between different markets. This paper shows that collusion in such industries leads firms to shift output from high …
Persistent link: https://www.econbiz.de/10013083114
We present a Cournot model that compares the critical threshold of collusion in Duopoly and Oligopoly Markets where the … actors are private, mixed or public. We assume that the incentive critical threshold for collusion depends on the … values is consistent with our theoretical results. Our findings can be used by the decision makers to control collusion, by …
Persistent link: https://www.econbiz.de/10013086142
The existing literature on exclusive dealing is extended to take into account that buyers signing exclusive deals are typically competing firms that are differentiated from the perspective of their customers. We show, provided such downstream firms are not too differentiated, exclusive contracts...
Persistent link: https://www.econbiz.de/10012734792