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This paper considers a potential entrant that cannot enter without paying an avoidable cost and cannot commit toi that until after incumbent firms have committed to their output.
Persistent link: https://www.econbiz.de/10005625645
different types of market competition. We find that except under extreme competition, a la Bertrand, firms have an incentive to …
Persistent link: https://www.econbiz.de/10005474874
This paper develops a model of pricing and advertising in a matching environment with capacity constrained sellers …
Persistent link: https://www.econbiz.de/10005076903
Conjectural variation models are popular in empirical research as they infer the degree of market power from real data. IO-theorists, however, disapprove it for lack of theoretical foundation, arguing that dynamic reactions are forced into a static model with the strategy space and time horizon...
Persistent link: https://www.econbiz.de/10005781021
Conjectural variation models are popular in empirical research as they infer the degree of market power from real data. IO-theorists, however, disapprove it for lack of theoretical foundation, arguing that dynamic reactions are forced into a static model with the strategy space and time horizon...
Persistent link: https://www.econbiz.de/10008621779
Exploring a variant of the model of Aghion and Bolton Yields the following results. When an incumbent seller is constrained to price linearly, an exclusionary vertical contract Pareto-dominates spot sales by smoothing prices across states of the world ( potential entrant does or does not appear).
Persistent link: https://www.econbiz.de/10005661125
Market delineation is a fundamental tool in modern antitrust analysis. However, the definition of relevant markets can be very difficult in practice. This preliminary draft applies a new methodology combining a simple price correlation test with hierarchical clustering -a method known from...
Persistent link: https://www.econbiz.de/10011911873
relatively small size, still faces the challenges of high concentration in services and lack of competition, with only a few …
Persistent link: https://www.econbiz.de/10011654027
Market delineation is a fundamental tool in modern antitrust analysis. However, the definition of relevant markets can be very difficult in practice. This preliminary draft applies a new methodology combining a simple price correlation test with hierarchical clustering -a method known from...
Persistent link: https://www.econbiz.de/10011929833
This paper examines how market competition affects the intensity and breadth of innovation. I assembled a unique … between price competition and innovation. When collusion suppressed price competition, colluding firms increased patent … technology classes increased by 30%. When competition was restored by collusion breakdown, the increased and broadened innovation …
Persistent link: https://www.econbiz.de/10012844444