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stores in Sweden, we find that the average entry costs for small and large stores are 10 and 18 percent lower, respectively …, in markets with liberal compared with restrictive regulations. Counterfactual simulations show that lower entry costs in …
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In this paper, unlike the conventional wisdom, we demonstrate that the relationship between the size of the market and number of firms would be non-monotonic. While moderate rise in the size would force the local firms to exit and only the foreign firm rules, substantial rise in the size would...
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with quality differentiated products and a fringe producer. Depending on market size, costs for a second brand and a …
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We analyze entry of a firm with a new and differentiated product into a market with two properties: An existing incumbent has a captive consumer base, and all consumers have heterogeneous tastes. The interaction of the share of captive consumers with the degree of taste heterogeneity leads to...
Persistent link: https://www.econbiz.de/10012520198
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 …, that this result extends to price competition with differentiated products. …
Persistent link: https://www.econbiz.de/10011410253