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We consider precautionary liquidity holding as counter-strategy for the entrant to protect himself from predation …. Threat of predation, even if avoided in equilibrium, affects the financial contract to raise precautionary liquidity and the …-up capital cannot raise large enough precautionary liquidity; consequently, he shrinks his business so as to avoid predation …
Persistent link: https://www.econbiz.de/10010685199
predation. Recognizing that marginal cost data were typically unavailable, the authors concluded that a price below average … predation. We first show that in two-sided markets price cost margins on the two-sides of the market are interrelated and that a … cannot be considered a sign of predation in such markets. This is in contrast to a recent decision of the Commercial Court of …
Persistent link: https://www.econbiz.de/10010857755
We consider an ecosystem management problem where managers can use habitat creation and predator removal to conserve an endangered species. Predator removal may become particularly important in the face of habitat loss, and ecosystem management strategies that ignore the influence of habitat are...
Persistent link: https://www.econbiz.de/10010862743
particular reference to Veblenian predation, assists in positioning the issue to allow closer analysis of fraud and its place … within the economic order. Recent work undertaken by anthropologists reinforces our understanding of money, predation, and …
Persistent link: https://www.econbiz.de/10010663299
customers exhibit ‘predation’: they hold off purchasing and strategically slow down the speed of trade, which in turn causes … of liquidation sales and predation. Specifically we show that TOM falls during periods of predatory buying, which, if … interpreted on face value, indicates that the market becomes more liquid with predation. We propose an alternative proxy – the …
Persistent link: https://www.econbiz.de/10010664408
The Microsoft antitrust case focused public attention on the role of antitrust enforcement in preserving the forces of innovation in high-technology markets. Traditionally, regulators focused on whether companies artificially hiked prices or reduced output. Now, they're increasingly likely to...
Persistent link: https://www.econbiz.de/10010843299
We provide a formal analysis of the notion that conglomerates are more ‘entrenched’ as they have ‘deeper pockets’. Using the financial contracting model of Bolton and Scharfstein (1990), we can isolate two effects that confirm this conjecture: the pooling of cash flows, which allows to...
Persistent link: https://www.econbiz.de/10010746348
This paper presents a unique empirical analysis of Salop and Scheffman?s raising rival?s cost theory of predation. The …
Persistent link: https://www.econbiz.de/10010816328
We present a model in which there is potentially conflict within households about resource allocations. These conflicts are unlikely to be perfectly bargained out and hence there is some residual inefficiency associated with conflict which ought to increase with household size. We also show that...
Persistent link: https://www.econbiz.de/10010721007
predation. Labor share is the key variable which determines in equilibrium the time devoted to each activity: an increase in the … labor share raises the incentive to devote time to production and discourages predation. When the elasticity of substitution … portions of predation and present lower labor shares. The standard effects of an increase in the productivity are amplified by …
Persistent link: https://www.econbiz.de/10011124060