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that uses the regulatory policy to deter entry. We consider a firm that initially operates as a monopolist in two markets … but faces potential entry in one of the markets. We conclude that the regulated firm can have the incentive to block the … entry. This strategy leads to the reduction of the price in both markets. However, the final effect of the entry deterrence …
Persistent link: https://www.econbiz.de/10005674462
and the possibility of side payments. With incompatibility, entry deterrence occurs for sufficiently strong network …
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This paper examines competition in the liberalized natural gas market. Each .firm has zero marginal cost core capacity, due to long term contracts with take or pay obligations, and additional capacity at higher marginal costs. The market is decentralized and the firms decide which customers to...
Persistent link: https://www.econbiz.de/10005786977
This paper tests an empirical implication of Melitz (2003) in the context of falling trade costs, using the EU’s intensive liberalization phase (1993-2002) as a natural experiment. Contrary to the model’s predictions, firms that switch from non-exporting to exporting over the studied period...
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noninvesting firms. In each period, one investor can acquire a small firm, the other investor decides about market entry. After …
Persistent link: https://www.econbiz.de/10005756590
An innovative firm chooses strategically whether to patent its process innovation or rely on secrecy. By doing so, the firm manages its rival’s beliefs about the size of the innovation, and affects the incentives in the product market. Different measures of competitive pressure in the product...
Persistent link: https://www.econbiz.de/10004991252
Although transition to entrepreneurship is a central subject in entrepreneurial studies, there is little research on its link with previous employer firm size. This study examines this relationship by utilizing a rich data set representing the entire Taiwanese labor market. While we found that...
Persistent link: https://www.econbiz.de/10004992468