In this paper we enrich the Brabander (1981) and Brander and Krugman (1983) model of reciprocal entry by placing it i a setting of two-sided asymetric information. Following the limit pricing methodology of Milgrom and Roberts (1982), we show that the limit price is affected by a firm''s desire...

This paper examines to what extent gazelles are the drivers of the growth of industries and structural change. To this purpose we analyze gazelles over a 12 year period (annually from 1997 until 2008) in the Netherlands, and relate them to the dynamics in employment per industry. We use a panel...

A number of recent empirical studies of firm-level productivity (growth) have been concerned with establishing potential complementarity between multiple organizational design practices. These papers have drawn conclusions on basis of the effect of the interaction term between each possible pair...

The presence of synergies in recurrent procurement auctions leads to an exposure problem and asymmetries among bidders. We consider sequential first- and second-price auctions with synergies in a setting with four bidders. In a series of experiments we compare the performance of the two pricing...

Bresnahan and Reiss (1991) derive entry thresholds (equilibrium numbers of firms) for local markets but do not investigate actual entry and exit flows. This paper investigates for thirteen Belgian retail and service industries whether markets with actual numbers of firms higher (lower) than the...

Co-determination refers to a set of rules and institutions which form an interlocking system and as such provide the unique structure of German corporate governance. This essay deals with the reasons responsible for bringing the structure about. In particular, the decision making process leading...

Competition in the emerging multimedia market currently focuses on setting standards for storing, retrieving, processing, (de)compressing, and transmitting information. Each multimedia system or architecture combines several standards, some proprietary. This paper uses selected insights from...

In the multimedia market, mergers and alliances are alternative ways to coordinate decision making about, especially, technology policies. Salient characteristics of multimedia explain why the amount of mergers and alliances rose during the 1990s. They may also effect the choice by firms among...

In this paper we show that in a private value setting first-price auctions can be preferred to second-price auctions. We consider a sequential auction of two objects with positive synergies and compare both auction formats. Although the second-price auction performs better in terms of efficiency...

In multi-unit (procurement) auctions winning multiple contracts can lead to cost advantages due to synergies. As an example one can think of procurement auctions where construction firms have returns to scale for investments in specialized equipments and workers that are required in large-scale...