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loss that arises from more intense market competition: the low-cost firms’ profits may indeed increase with the number of … Ford’s strategy of disclosing its know-how publicly and extensively at the beginning of the 20th century. -- Competition …
Persistent link: https://www.econbiz.de/10003981916
forms of demand and retail competition. Whether countervailing buyer power arises, in the form of lower negotiated prices …
Persistent link: https://www.econbiz.de/10011334106
Network shares and retail prices are not symmetric in the telecommunications market with multiple bottlenecks which give rise to new questions of access fee regulation. In this paper we consider a model with two types of asymmetry arising from different entry timing, i.e. a larger reputation for...
Persistent link: https://www.econbiz.de/10011346476
We assess the influence of competition and capital regulation on the stability of the banking system. We particularly … show that competition improves the monitoring incentives of better quality banks and deteriorates the incentives of lower … quality banks; and that precisely for those lower quality banks competition typically compromises the effectiveness of capital …
Persistent link: https://www.econbiz.de/10011348715
This paper models competition between two firms, which provide broadband In-ternet access in regional markets with … intensifies competition in all regions. We show that the cost-reducing potential of investments dominates the strategic effect …: Higher access fees increase facility-based competition, decrease retail prices and increase total demand. …
Persistent link: https://www.econbiz.de/10011526221
The U.S. and EU Merger Guidelines strongly emphasize the relevance of the "ease of entry" argument in merger evaluations. Up to now, very little is known empirically about how mergers affect entry and exit, and the resulting number of firms in the markets. We empirically test this aspect of...
Persistent link: https://www.econbiz.de/10011481190
We show that competing firms relax overall competition by lowering future barriers to entry. We illustrate our findings …-period profits. This dampens competition for serving the first-period market. …
Persistent link: https://www.econbiz.de/10011541031
-dimensional spatial competition model. We develop a new methodology to analyze competition on a torus and show that there is a fundamental …, firms are likely to choose the minimal compatibility to maximize product differentiation and soften competition. This is in …
Persistent link: https://www.econbiz.de/10010424907
In this paper, we study the rational for an incumbent to launch a second brand when facing potential entry in a market with quality differentiated products and a fringe producer. Depending on market size, costs for a second brand and a potential entrant’s setup cost the incumbent might use a...
Persistent link: https://www.econbiz.de/10010433926
We analyze the effect of competition in market-accessibility enhancement among quality-differentiated firms. Firms are …
Persistent link: https://www.econbiz.de/10013137873