Showing 1 - 10 of 5,097
and the possibility of side payments. With incompatibility, entry deterrence occurs for sufficiently strong network …
Persistent link: https://www.econbiz.de/10005471702
The presence of multiple sellers in the provision of (non-substitutable) complementary goods leads to outcomes that are worse than those generated by an integrated monopoly, a problem also known as the «tragedy of the anticommons». In this paper we identify some conditions under which the...
Persistent link: https://www.econbiz.de/10010786928
, it later “tips” to monopoly, after which entry is hard, often even too hard given incompatibility. And while switching … costs can encourage small-scale entry, they discourage sellers from raiding one another's existing customers, and so also … discourage more aggressive entry. Because of these competitive effects, even inefficient incompatible competition is often more …
Persistent link: https://www.econbiz.de/10014024585
As the network externality in an industrial organization has been widely discussed in recent years, many researchers in the field have noted a particular type of market, the so-called two-sided market. In a two-sided market, two or more groups of agents such as buyers and sellers interact while...
Persistent link: https://www.econbiz.de/10011048687
This paper considers the collusive stability of downstream competition in a vertical market with network externalities and cost asymmetry. A dynamic collusion game is constructed, and backward induction is employed to solve the subgame perfect Nash equilibrium. We show that larger network...
Persistent link: https://www.econbiz.de/10014422321
We study a dynamic model with an incumbent monopolist and entry in every subsequent period. We first show that if all …
Persistent link: https://www.econbiz.de/10010665755
Standard media economics models imply that increased platform competition decreases ad levels and that mergers reduce per-viewer ad prices. The empirical evidence, however, is mixed. We attribute the theoretical predictions to the combined assumptions that there is no advertising congestion and...
Persistent link: https://www.econbiz.de/10011051637
fact that the new company will cover not above 40% of the market; meaning that potential entry and facilities based … competiton will produce a market with companies of different sizes. We also find that the entry policy with asymmetric access … paid by consumers because prices increase in equilibrium. In terms of efficiency the assisted entry produce welfare loss …
Persistent link: https://www.econbiz.de/10005698266
We analyze firms' entry, production and hedging decisions under imperfect competition. We consider an oligopoly … industry producing a homogeneous output in which risk-averse firms face an entry cost upon entering the industry, and then … literature (without entry), both production and output price depend on uncertainty and risk aversion. Specifically, when entry is …
Persistent link: https://www.econbiz.de/10010906759
sufficiently high, license without entry strategy is optimum; if the low quality good’s quality is low, both of entry without … license strategy and license without entry strategy are optimum; when cost functions are quadratic, if the high quality good …’s quality is high, license without entry strategy is optimum; if the high quality good’s quality is low, entry with license …
Persistent link: https://www.econbiz.de/10011573193