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We introduce a price oligopoly model with informed and uninformed consumers, thus creating a new channel of influence for collaborative R&D. Firms can establish pair-wise collaborative research links with other firms to lower production costs. Informed consumers buy from the lowest cost firms...
Persistent link: https://www.econbiz.de/10012893467
We develop a model of endogenous network formation in order to examine the incentives for R&D collaboration in a mixed … oligopoly. Our analysis reveals that the complete network, where each firm collaborates with all others, is uniquely stable …
Persistent link: https://www.econbiz.de/10014219137
product differentiation and link costs: (i) the non-exclusive distribution and non-exclusive dealing network in which both … exclusive distribution and exclusive dealing network in which each retailer distributes a different product is stable for low … degrees of product differentiation; (iii) the mixed distribution network in which one retailer distributes both products while …
Persistent link: https://www.econbiz.de/10014063630
network is always pairwise stable and the partially connected network is stable if and only if spillovers are large enough. If … spillovers are small, the complete network is the efficient network; otherwise, the efficient network is the partially connected … network. Thus, a conflict between stability and efficiency may occur: efficient networks are pairwise stable, but the reverse …
Persistent link: https://www.econbiz.de/10014068404
We consider a multimarket framework where a set of firms compete on two interrelated oligopolistic markets. Prior to competing in these markets, firms can spy on others in order to increase the quality of their product. We characterize the equilibrium espionage networks and networks that...
Persistent link: https://www.econbiz.de/10014190392
. When spillovers are local and transit through the network of alliances, stable architectures with a moderate level of …
Persistent link: https://www.econbiz.de/10014028424
In this note, we extend the Goyal and Joshi's model of network of collaboration in oligopoly to multi-market situations …
Persistent link: https://www.econbiz.de/10013061311
We investigate government subsidy policies in which a home firm and a foreign firm choose to strategically set prices … governments under subsidy regime, Cournot competition is more efficient than Bertrand competition when the goods are substitutes … Pareto superior (inferior) with government's intervention of subsidy policy when the goods are substitutes (complements …
Persistent link: https://www.econbiz.de/10011108828
We investigate government subsidy policies in which a home firm and a foreign firm choose to strategically set prices … governments under subsidy regime, Cournot competition is more efficient than Bertrand competition when the goods are substitutes …
Persistent link: https://www.econbiz.de/10011112806
&D process. Policy competition results in a unilateral incentive of a subsidy, and the stable optimal policy is always a subsidy …. When two governments harmonize their policies, it is optimal for them to set subsidies to zero. The optimal subsidy in a …
Persistent link: https://www.econbiz.de/10010927821