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We investigate the effect of a ban on third-degree price discrimination on the sustainability of collusion. We build a model with two firms that may be able to discriminate between two consumer groups. Two cases are analyzed: (i) Best-response symmetries so that profits in the static Nash...
Persistent link: https://www.econbiz.de/10012996205
This study examines the welfare effects of patent pools with independent licensing. We argue that forcing patent pools to allow each individual patent holder to license the technology independently does not necessarily work as a screening tool to select only desirable patent pools. We consider a...
Persistent link: https://www.econbiz.de/10012966993
If one or two cellular carriers gain control of enough spectrum, they may be able to prevent current and potential rivals from getting the spectrum needed to compete effectively. Thus, regulators typically attempt to protect competition through some form of limit on how much spectrum any one...
Persistent link: https://www.econbiz.de/10014159405
Market power on each side of a multisided platform, whether in the form of increasing prices or decreasing quality, is … constrained by the risk of losing sales on the other sides. That tends to weaken market power on each side and encourages … provide a reliable assessment of competitive constraints, market power analysis must consider the interdependencies in demand …
Persistent link: https://www.econbiz.de/10014128700
Oligopolists look for signals from one another in planning their strategies. Some signals solicit cooperation from rivals and a still smaller number succeed in achieving noncompetitive equilibria. But only a subset of these noncompetitive outcomes involve agreements under Section 1 of the...
Persistent link: https://www.econbiz.de/10014134934
propose that an analysis of market power, incentives, coercion and induction should guide the finding of an illegal vertical …
Persistent link: https://www.econbiz.de/10014136313
In this paper I set forth an antitrust remedy for the oligopolistic pricing problem. Oligopoly pricing resembles a repeated prisoners' dilemma game. Each firm has an incentive to moderately lower its price and thus increase its sales at its competitors' expense. However, each firm knows that its...
Persistent link: https://www.econbiz.de/10014049971
. It is routinely analysed in terms of game theory. Much less frequently, however, an obvious parallel is drawn. For cartel … at the theoretical and at the experimental levels. The paper contrasts oligopoly theory with public goods theory, and …
Persistent link: https://www.econbiz.de/10014058244
The paper addresses the issue of coordinated effects of mergers in the framework of a differentiated products model. Firms' assets are product varieties that can be sold individually or entirely transferred to another firm in a merger. We show that under symmetric optimal punishment schemes the...
Persistent link: https://www.econbiz.de/10014068549
This paper addresses the effect of horizontal mergers on prices. It is shown that if firms compete in quantities and marginal costs are nondecreasing, any profitable merger failing to generate technological synergies must harm consumers through higher prices, irrespective of entry conditions in...
Persistent link: https://www.econbiz.de/10014035311