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Injunctions against false advertising
Baumann, Florian; Rasch, Alexander - 2017
We consider a situation of duopolistic competition in which one firm may (falsely) advertise high product quality. Consumers are heterogeneous. One group forms rational beliefs about quality, whereas some consumers are naive and fully trust any advertisement. We compare two scenarios in which...
Persistent link: https://www.econbiz.de/10011712655
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The Inefficiency of Market Transparency - A Model with Endogenous Entry
Gu, Yiquan; Hehenkamp, Burkhard - 2010
Including the entry decision in a Bertrand model with imperfectly informed consumers, we introduce a trade-off at the level of social welfare. On the one hand, market transparency is beneficial when the number of firms is exogenously given. On the other, a higher degree of market transparency...
Persistent link: https://www.econbiz.de/10010270078
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Network Neutrality and Quality of Service: A two-sided market analysis
Köksal, Emin - 2010
In this paper, we examine welfare implications of switching from a neutrality regime to a network management regime. While in the former a network provider or an integrated ISP should transmit data with a-bit-is-a-bit principle, in the latter it is allowed to differentiate its connection quality...
Persistent link: https://www.econbiz.de/10010304318
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Regulating False Discloure
Janssen, Maarten - 2017
Firms can communicate private information about product quality through a combination of pricing and disclosure where disclosure may be deliberately false. We examine the effect of regulation that penalizes false disclosure by firms in a competitive setting. The cost of false disclosure...
Persistent link: https://www.econbiz.de/10011712672
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Effects of Conferring Business Resource on Rivals
Ajit, Tejaswi Channagiri; Jamison, Mark A. - 2022
We examine how requiring platforms to give rivals resources, such as data, affects innovation. Using simulations in which an initial firm obtains a head start on rivals and uses that head start to build a valuable resource that subsequently gives it a competitive advantage over rivals when...
Persistent link: https://www.econbiz.de/10013420960
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Platform Choices: Impact on Startup Performance
Ajit, Tejaswi Channagiri; Jamison, Mark A. - 2022
We study the impact of platform choice (iOS vs Android) for firms that build apps for smart phones. We merge app data from Sensor Tower® with financial performance data from Crunchbase®. We find that apps that begin on Android have greater average downloads per month. However, apps with the...
Persistent link: https://www.econbiz.de/10013420961
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Search, Data, and Market Power
Groh, Carl-Christian - 2023
Persistent link: https://www.econbiz.de/10014363787
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Platform Standards, Collusion and Quality Incentives
Salim, Claudia - 2010
We present the idea that quality cooperation and standardisation might raise network providers' incentives for product differentiation. As a result, the equilibrium outcome may be characterised by voluntary standardisation and maximum quality differentiation: This situation arises, if platforms...
Persistent link: https://www.econbiz.de/10010270111
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Collusion through price ceilings? In search of a focal-point effect
Engelmann, Dirk; Müller, Wieland - 2010
conditions in previous studies were unfavorable for collusion which may have been responsible for not finding such a focal … the focal-point hypothesis. Collusion is as unlikely in markets with a price ceiling as in markets with unconstrained …
Persistent link: https://www.econbiz.de/10010273614
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Co-investments and tacit collusion in regulated network industries: Experimental evidence
Krämer, Jan; Vogelsang, Ingo - 2012
collusion in regulated network industries. On the one hand, co-investments turn out not to be a significant driver of new … infrastructure investments beyond the level achieved by access regulation and they seem to facilitate tacit price collusion. On the …-investments, seems to have a positive effect on investments. However, the surprising message of the experiment is that tacit collusion …
Persistent link: https://www.econbiz.de/10010309719