The purpose of this article is twofold. First, it deals with the question of technology choice in a framework where agents are 'small'. It shows that firms generically choose the same technology although different technologies are available. Our simple static model yields a non-monotonous...

This paper analyzes a simple, repeated game of simultaneous entry and pricing. We report a surprising property of the symmetric equilibrium solution: If the number of potential competitors is increased above two, the market breaks down with higher probability, and the competitive outcome becomes...

This paper analyzes the effects of vertical foreign direct investment on industry structure, prices and welfare in two different scenarios. In the first case, the total number of firms is fixed, and we show that national and multinational firms may coexist. In the second case, market entry is...

The paper deals with the subtraction rule, which has been proposed by the working group security of supply in service of the cartel offices of the federal republic and the states as an instrument to identify improperly inflated network access charges in the electricity industry. We analyze...

According to Stigler [1951], vertical disintegration should be the typical development in growing industries, vertical integration in declining industries. The basic argument is that firms will spin off production stages subject to increasing returns to scale in response to market growth. This...

We introduce technology choice into a model of monopolistic competition and analyze the structural effects of changes in market size. A larger market leads to the adoption of a large-scale technology. If a technology switch occurs, the number of firms decreases, and a rationalizing effect...