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This paper extends the standard Hotelling model with quadratic transport costs to the multi-firm case. Considering locational equilibria we show that neither holds the Principle of Maximum Differentiation - as in the duopoly model - nor does the Principle of Minimum Differentiation - as in the...
Persistent link: https://www.econbiz.de/10005841039
Many oligopoly theories predict that there will be a positive correlation between market size and the equilibrium number of firms, and some also imply that competition is more intense in larger markets. We test these predictions with a sample of 535 driving schools in 249 markets. With an...
Persistent link: https://www.econbiz.de/10014085426
In this paper, I examine duopoly with multi-services, where firms offer delivery prices and mill prices at the same …
Persistent link: https://www.econbiz.de/10012972643
Existing applications of the Salop model (1979) to oligopolistic competition between retailers assume that demand is constant or has constant elasticity. With these formulations, demand is never zero, retailers always compete, and transport costs, as barriers to competition, always raise...
Persistent link: https://www.econbiz.de/10013233320
cities host more firms setting lower prices whereas for sectors with intermediate land shares larger cities accommodate more … firms charging higher prices. Softer land-use regulations and/or lower commuting costs reinforce pro-competitive effects …, making larger cities more attractive for residents via lower prices and broader product diversity …
Persistent link: https://www.econbiz.de/10012866551
Bertrand-Nash equilibria in a duopoly. Comparing equilibrium prices to the prices set by a multiproduct monopolist, we show … that competition drives prices up and reduces total surplus. …
Persistent link: https://www.econbiz.de/10010261097
In this paper, we analyze the equilibrium amount of entertainment in news coverage of newspapers and television stations. We find that a shift in the inclination to read, expressed by a shift in the (psychological) distance costs, induces both media outlets to incorporate more entertaining...
Persistent link: https://www.econbiz.de/10010427580
This paper presents a theory of vertically interrelated markets of identical fixed size under implementation of positive indirect network effects. By introducing two Salop circles, a two-sided market model is provided, where intermediaries of differentiated copyrights for intellectual property,...
Persistent link: https://www.econbiz.de/10010286453
Public Service Media (PSM) online is a highly up to date topic. There is no clear consensus among researchers if Public Service Media should have a legitimization online and if so to which extent. Some authors still demand for an extensive role of public service provision in the digital era...
Persistent link: https://www.econbiz.de/10010321677
Newspapers have experienced declining circulation figures and declining advertising revenues for several years. In particular, declining advertising figures put a threat on newspapers - this is especially severe in the US where 73% of their revenues are generated through advertising. On the...
Persistent link: https://www.econbiz.de/10010321680