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In this paper we show that, in the presence of buyer and seller power, a monopolist can enter into a costly contractual relationship with a low-quality supplier with the sole intention of improving its bargaining position relative to a high-quality supplier, without ever selling the good...
Persistent link: https://www.econbiz.de/10011730400
that the monopoly platform does not introduce distortions over and above those arising from the market power of the …
Persistent link: https://www.econbiz.de/10012772229
offering internet and voice services. Exclusion is not a concern when the ISP is a monopoly because it can extract the … internet where only one firm offers the application. We show that, both in monopoly and duopoly, prohibiting the exclusion of …
Persistent link: https://www.econbiz.de/10013027414
In a recent paper, Chiara Fumagalli and Massimo Motta (2006) challenge the idea that an incumbent can foreclose efficient entry in the face of scale economies by using exclusive contracts. They claim that inefficient exclusion does not arise when buyers are homogenous firms that compete...
Persistent link: https://www.econbiz.de/10013155042
competition more than a monopoly …
Persistent link: https://www.econbiz.de/10013252397
undermining consumer welfare.Economist Joseph Schumpeter warned against such monopoly fatalism. He recognized that the most … extremely skeptical about predictions of entrenched monopoly power for Amazon, Google, Facebook, Apple, and Microsoft today …
Persistent link: https://www.econbiz.de/10012846229
restore monopoly power in the essential product market, which is hurt by multihoming consumers. In that case, tying works as a …
Persistent link: https://www.econbiz.de/10012718061
relative to A. Hence, absent strong antitrust or intellectual property protections, the A firm can leverage its monopoly into B … substitute for Netscape; in our model, this maximizes Microsoft's joint monopoly profits. Furthermore, Microsoft has no incentive … complementary products, which suggests that a monopoly internet service provider will offer net neutrality.There are other means for …
Persistent link: https://www.econbiz.de/10012732764
We build a dynamic duopoly model that accounts for the empirical observation of monopoly persistence in the long run …. Contrary to the predictions of the static model, strategic predation that leads to the persistence of monopoly is in general …
Persistent link: https://www.econbiz.de/10012707649
good or service. Even if these firms are monopoly or oligopolies in their fields with huge economic rents, if they pass …
Persistent link: https://www.econbiz.de/10012804859