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This note investigates the possibility of profit raising entry in network industries where firms follow Corporate Social Responsibility (CSR) behaviours, showing the interaction between the network and CSR features. In particular, for high levels of the network effect, an incumbent’s profits...
Persistent link: https://www.econbiz.de/10011764906
We conducted a laboratory experiment to study the price setting behavior in two-sided markets. We seek to answer two specific research questions: Do participants charge the equilibrium prices that can be derived from a theoretical model? How is the price setting affected by the characteristics...
Persistent link: https://www.econbiz.de/10011825236
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/10003981036
Persistent link: https://www.econbiz.de/10001393355
effects on product market competition. We test their model in a duopoly experiment under both, Bertrand and Cournot … competition. We find that leverage has strategic effects, but those effects are much weaker than predicted by theory. Specifically … predicted by theory. It appears that subjects recognize the strategic effects of their own debt. However, they do not (want to …
Persistent link: https://www.econbiz.de/10011539878
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
and price competition in a duopoly with differentiated products. By allowing for partially privatizing a state … optimal subsidy to restore the first-best allocation, irrespective of the mode of competition. The paper also focuses on the …
Persistent link: https://www.econbiz.de/10011526650
We consider the efficiency of Cournot and Bertrand equilibria in a duopoly with substitutable goods where firms invest …
Persistent link: https://www.econbiz.de/10011373823
The paper models duopolistic competition in so called monotowns: towns with one big factory where most of the citizens are employed. Workers after job go to one of the competitor shops, buy the product and bring it home. Nash equilibrium is found for linear and two-dimensional cases. The...
Persistent link: https://www.econbiz.de/10012002089
We study road supply by competing firms between a single origin and destination. In previous studies, firms simultaneously set their tolls and capacities while taking the actions of the others as given in a Nash fashion. Then, under some widely used technical assumptions, firms set the same...
Persistent link: https://www.econbiz.de/10011536414