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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

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

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

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

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

Strategic Corporate Social Responsibility

Planer-Friedrich, Lisa; Sahm, Marco - 2017 - This version: May 29, 2017

We examine the strategic use of Corporate Social Responsibility (CSR) in imperfectly competitive markets. The level of CSR determines the weight a firm puts on consumer surplus in its objective function before it decides upon supply. First, we consider symmetric Cournot competition and show that...

Persistent link: https://www.econbiz.de/10011659485

Hunting unicorns? : experimental evidence on predatory pricing policies

Edlin, Aaron S.; Roux, Catherine; Schmutzler, Armin; … - 2017

We study the anticompetitive effects of predatory pricing and the efficacy of three policy responses. In a series of experiments where an incumbent and a potential entrant interact, we compare prices, market structures and welfare. Under a laissez-faire regime, the threat of post-entry price...

Persistent link: https://www.econbiz.de/10011674143

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

Naked exclusion under exclusive-offer competition

Kitamura, Hiroshi; Matsushima, Noriaki; Sato, Misato - 2018

This study constructs a model of anticompetitive exclusive-offer competition between two existing upstream firms. Under exclusive-offer competition, the upstream firm's profit depends on the rival’s exclusive offer. If the rival makes an exclusive offer acceptable for the downstream firm, the...

Persistent link: https://www.econbiz.de/10011804767

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