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The competitive effects of declining entry costs over time : evidence from the static random access memory market

Liu, An-Hsiang; Siebert, Ralph - 2020

We focus on the estimation of market entry costs that are declining over time and evaluate their impact on competition and market performance. We employ a dynamic oligopoly model in which firms make entry, exit, and production decisions in the presence of declining entry costs and learning by...

Persistent link: https://www.econbiz.de/10012287789

Persistence of monopoly and research specialization

Weinschenk, Philipp - 2009

We examine the persistence of monopolies in markets with innovations when the outcome of research is uncertain. We show that for low success probabilities of research, the incumbent can seldom preempt the potential entrant. Then the efficiency effect outweighs the replacement effect. It is vice...

Persistent link: https://www.econbiz.de/10003862312

Law and economics of Microsoft vs. U.S. Department of Justice : new paradigm for antitrust in network markets or inefficient lock-in of antitrust policy?

Radke, Marc-Peter - 2001

influenced by BRIAN W. ARTHUR's theory of path dependence claiming (1) that high-technology markets being subject to network … dependence theory is only a theoretical curiosity that lacks empirical evidence. The predominance of a certain technology and … Microsoft's monopoly as it was claimed by the courts within their 'applications barrier to entry' theory. I claim that current …

Persistent link: https://www.econbiz.de/10003958724

Exclusive quality

Argenton, Cédric (contributor) - 2006 - Rev. June 5, 2007

It is shown in this study that in the case of vertically differentiated products, Bertrand competition at the retail level does not prevent an incumbent upstream firm from using exclusivity contracts to deter the entry of a more efficient rival, contrary to what happens in the homogenous product...

Persistent link: https://www.econbiz.de/10003384130

Can naked exclusion be procompetitive?

Gratz, Linda; Reisinger, Markus - 2012 - This version: August 2011

Antitrust scholars have argued that exclusive contracts have anticompetitive, or at best neutral effects, if no efficiencies are generated. In contrast, this paper shows that exclusive contracts can have procompetitive effects, provided buyers are imperfect downstream competitors and contract...

Persistent link: https://www.econbiz.de/10009490193

Starting an R&D project under uncertainty

Dobbelaere, Sabien; Luttens, Roland Iwan; Peters, Bettina - 2010

We study a two-stage R&D project with an abandonment option. Two types of uncertainty influence the decision to start R&D. Demand uncertainty is modelled as a lottery between a proportional increase and decrease in demand. Technical uncertainty is modelled as a lottery between a decrease and...

Persistent link: https://www.econbiz.de/10011378299

An empirical test of the asymmetric models on innovative activity : who invests more into R&D - the incumbent or the challenger?

Czarnitzki, Dirk; Kraft, Kornelius - 2000

The theoretical discussion concerning the question whether the incumbent or the (potential) entrant invests more into R&D has attracted considerable interest. This paper reports the results of an empirical study on this question using data of about 3500 German firms over the years 1992 to 1995....

Persistent link: https://www.econbiz.de/10011444512

Acquisitions versus entry : the evolution of concentration

Aydemir, Zava (contributor); Schmutzler, Armin (contributor) - 2002 - [Elektronische Ressource]

We consider market dynamics in a reduced form model. In the simplest version, there are two investors and several small noninvesting firms. In each period, one investor can acquire a small firm, the other investor decides about market entry. After that all firms play an oligopoly game. We derive...

Persistent link: https://www.econbiz.de/10001729422

Endogenous market structure and Partisan competition authorities

Goerke, Laszlo - 2022

The so-called excess-entry theorem (Mankiw and Whinston 1986, Suzumura and Kiyono, 1987) establishes conditions guaranteeing that more firms enter a homogeneous Cournotoligopoly in equilibrium than a benevolent government prefers. We generalise the approach and analyse the behaviour of a...

Persistent link: https://www.econbiz.de/10013257050

How does downstream firms' efficiency affect exclusive supply agreements?

Kitamura, Hiroshi; Matsushima, Noriaki; Sato, Misato - 2013

This study constructs a model for examining anticompetitive exclusive supply contracts that prevent an upstream supplier from selling input to a new downstream firm. With regard to the technology to transform the input produced by the supplier, as an entrant becomes increasingly efficient, its...

Persistent link: https://www.econbiz.de/10009775790