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In this paper we analyse the employment implications of firing restrictions. We find that when a recession is expected and the trend rate of productivity growth is small, a rise in firing costs affects mainly the hiring decision. Thus there is a negative effect on average employment. When, on...
Persistent link: https://www.econbiz.de/10011418198
takes the form of singular control. Spot competition is of Cournot type. For this model there exists a parameterized and …
Persistent link: https://www.econbiz.de/10010339395
Using quarterly worker flow data of U.S. establishments, we find that an unexpected increase in uncertainty reduces hirings and quits, while it raises layoffs. This finding suggests that the real option effect of uncertainty is less important for employment decisions. Hence plants do not freeze...
Persistent link: https://www.econbiz.de/10010488510
This paper analyzes a two-player all-pay auction with incomplete information. More precisely, one bidder is uncertain about the size of the initial advantage of his rival modeled as a head start in the auction. I derive the unique Bayesian Nash equilibrium outcome for a large class of cumulative...
Persistent link: https://www.econbiz.de/10010339410
This paper introduces a class of contest models in which each player decides when to stop a privately observed Brownian motion with drift and incurs costs depending on his stopping time. The player who stops his process at the highest value wins a prize. We prove existence and uniqueness of a...
Persistent link: https://www.econbiz.de/10010487682
This paper explores the relationship between the intensity of competition in product markets and firms' incentives to … us to differentiate between several measures for the intensity of competition. We establish that more firms in the … industry (i.e., lower entry costs) reduce the crime rate. Furthermore, whether more intense competition due to the increased …
Persistent link: https://www.econbiz.de/10010486053
The paper deals with the competitive effects of price guarantees in a spatial duopoly where consumers can search for lower prices but have to incur hassle costs if they want to claim a price guarantee. It is shown that symmetric equilibria with and without price guarantees exist but price...
Persistent link: https://www.econbiz.de/10010337840
This paper develops a fairly general model of platform competition in media markets allowing viewers to use multiple … platforms. This leads to a new form of competition between platforms, in which they do not steal viewers from each other, but … competition "either or both." A central result is that platform ownership does not affect advertising levels, despite nontrivial …
Persistent link: https://www.econbiz.de/10010339953
This paper studies the impact of a dominant firm's conditional discounts on competitors' learning-by-doing. In a vertical context where a dominant upstream supplier and a competitive fringe sell their products to a single downstream firm, we analyze whether the dominant supplier prefers to off...
Persistent link: https://www.econbiz.de/10010343765
contribution is two-fold. First, we expand the theory of granularity to encompass the Bertrand competition frequently used in …
Persistent link: https://www.econbiz.de/10010336792