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We evaluate the impact of technological externalities on the location choices of duopolistic firms in a Weber triangle. Assuming technological spillover effects to be decreasing in the distance between firms, we show that each firm’s optimum location is independent of a demand shock when the...
Persistent link: https://www.econbiz.de/10004964339
In a duopoly market, aspiration levels express how much sellers want to earn given their expectations about the other …
Persistent link: https://www.econbiz.de/10004965213
Since price discrimination and selling below cost arise in the normal course of business and are usually legal for home firms, countering these practices by foreign firms provides a very weak rationale for antidumping duties. If antidumping duties were to provide a systematic defense against...
Persistent link: https://www.econbiz.de/10004966378
We analyse an infinite-period model of duopolistic competition in a market with consumer switching costs, in which in every period new consumers arrive and a fraction of old consumers leaves. We show that prices (and profits) are higher than in a market without switching costs, and that this...
Persistent link: https://www.econbiz.de/10005792046
We study competition between hydro and thermal electricity generators under demand uncertainty. Producers compete in quantities and each is constrained: the thermal generator by capacity and the hydro generator by water availability. We analyze a two-period game emphasizing the incentives for...
Persistent link: https://www.econbiz.de/10008558432
In this survey, I look into experimental studies on duopolistic quantity competition with homogeneous products and duopolistic price competition with heterogeneous products. The focus is on the sequence of competition. That is, I summarize and analyze experimental studies checking Cournot...
Persistent link: https://www.econbiz.de/10008560134
This paper addresses the two-way implication between punctuality level of public transport and commuter behavior. We consider a modal competition between public transport and an alternative mode. Commuters may choose different strategies to minimize their journey cost. In particular, when the...
Persistent link: https://www.econbiz.de/10010899645
Since Kreps and Scheinkman's seminal article (1983) a large number of papers have analyzed capacity constraints' potential to relax price competition. However, the ensuing literature has assumed that products are either perfect or very close substitutes. Therefore none of the papers has...
Persistent link: https://www.econbiz.de/10010699520
eliminated from the market their two principal competitors to find themselves in situation of duopoly and, thus, to control the …
Persistent link: https://www.econbiz.de/10005111095
market structure from monopoly to duopoly under the assumption that software producers compete in technology rather than …, i.e. innovation. It is found that: (i) moving from monopoly to duopoly does increase the technology level set by firms … in the software industry; (ii) a duopoly adjusts more readily to global technological progress than a monopolist …
Persistent link: https://www.econbiz.de/10004963814