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We analyze entry of a firm with a new and differentiated product into a market with two properties: An existing incumbent has a captive consumer base, and all consumers have heterogeneous tastes. The interaction of the share of captive consumers with the degree of taste heterogeneity leads to...
Persistent link: https://www.econbiz.de/10012520198
prices and features of goods without incurring search costs. The platform alleviates sellers' competition by charging them …
Persistent link: https://www.econbiz.de/10011721758
prices on both sides of the market, most of the literature has avoided models with Bertrand competition on both sides or has … policy simulation in the context of competition policy, it is important that equilibria exist and are unique. Otherwise, one …
Persistent link: https://www.econbiz.de/10013074893
-sharing effect that may relax competition for users, resulting in lower quality of content. More surprisingly, user surplus may also … anti-competitive effect while preserving the diversity effect. When there is competition among third parties, interplatform …
Persistent link: https://www.econbiz.de/10012861485
The Netherlands Authority for Consumers and Markets (ACM) has concluded that competition in the market for SME loans … running their businesses, it is particularly important that there is sufficient competition in the market. A lack of … competition could lead to higher funding costs for SMEs, worse service from banks, and less innovation.ACM has established that …
Persistent link: https://www.econbiz.de/10013003865
homogeneous and heterogeneous product, Cournot, Tullock competition) the Nash-2 equilibrium sets are obtained and considered as … tacit collusion or strong competition in dependence of additional security considerations …
Persistent link: https://www.econbiz.de/10013024415
Competition has been modelled in the literature in a number of ways. What do these different parametrizations of … competition have in common? For instance, it turns out that it is not always the case that a rise in competition reduces price … cost margins, industry wide profits or concentration. All parametrizations of competition, considered here, have two …
Persistent link: https://www.econbiz.de/10014142558
In many markets, a handset vendor and a service provider may enter into a tie-up for a handset to be available exclusively through the service provider. We examine when and why a service provider and a handset vendor may find this arrangement mutually profitable. We find that an exclusive tie-up...
Persistent link: https://www.econbiz.de/10013090265
game theory model to study platform competition with bonus strategies. Our analysis shows that the two types of bonuses … due to the softened platform competition. Second, when labor supply is thin, contingent bonus will be offered. In this … case, contingent bonus reduces platform profit because it intensifies platform competition and traps the platforms in a …
Persistent link: https://www.econbiz.de/10013295297
When products are sold in advance, i.e. prior to consumption, consumers trade off an early, uninformed purchase at a low price against a late, informed purchase at a high price. This paper considers the effect of market structure on the prevalence of advance selling. We show that in an...
Persistent link: https://www.econbiz.de/10011446893