This paper develops the Hotelling spatial model investigating the optimal choices of R&D risk in a market exhibiting network externalities. Assuming that firms perform R&D projects with identical expected outcomes but different risk degrees, it is found that, under certain conditions, the level...

Using an analytical model, we investigate the dynamics of a firm with market power whose advertisements and sales contribute to its customers’ stock of goodwill. An advertising campaign precedes the firm’s sales when customers are not familiar with its product, (e.g., movies), whereas sales...

Regulation of telecommunications sector plays a crucial role in the political and economic agenda for both industrial and developing countries. The regulatory efforts of more developing countries in order to attract investments and enhance the level of effective competition in the industry are...

In this paper, we tackle the dilemma of pruning versus proliferation in a vertically differentiated oligopoly under the assumption that some firms collude and control both the range of variants for sale and their corresponding prices, likewise a multiproduct firm. We analyse whether pruning...

We consider licensing with a patent competition for a non-drastic process innovation among firms competing in a Cournot market. We study whether licensing improves social welfare, after taking rent dissipation into account. For licensing auction, welfare worsens for minor innovations and...

Despite the accelerated pace at which progress in wireless technologies occurs, it is not uncommon to observe that some Mobile Operators (MOs) do not upgrade their mobile services, while their competitors adopt the newest technological standards. I propose an explanation for this apparent...

The Antitrust Marathons explore enduring issues of competition and consumer policy on a comparative basis through roundtable discussions of senior officials, practitioners, and academics in more depth than is possible in traditional conference format. Each Antitrust Marathon includes special...

This paper examines problems of entry, exit and competition in Ukrainian product markets. It finds that Ukraine still has too little of all three, and that exit mechanisms, in particular, function poorly. Since impediments to entry and exit are largely the product of excessive and ill...

Technology firms often decide between being open or closed to third party application development. Building on a two-sided market model with competing platforms, I show that firms might prefer to restrict third party application development despite the fact that allowing it is free and increases...

As the digital revolution has interrupted traditional supply chains and wholesaler relationships with manufacturers and retailers, companies are developing new methodologies to create supplier loyalty critical to control of market share. This article documents the leading strategies being...