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In this paper we consider a two-stage duopoly game where firms first decide whether to invest in advertising and then … compete in prices. Advertising has two effects: a market enlargement for both firms and a predatory gain for the investing … investment in advertising and that strong product substitutability may induce a coordination problem. …
Persistent link: https://www.econbiz.de/10005008546
, magazines, newspapers, the Internet, and television (the illustrative example henceforth). Most advertising expenditures are … incurred for these media. They are also mainly supported by advertising revenue. Early work stressed possible market failures … sides are coordinated by broadcasters (or "platforms") that choose ad levels and program types, and advertising finances the …
Persistent link: https://www.econbiz.de/10005065286
We analyze the incentives of internet service providers (ISPs) to break net neutrality by excluding internet applications competing with their own products, a typical example being the exclusion of VoIP applications by telecom companies offering internet and voice services. Exclusion is not a...
Persistent link: https://www.econbiz.de/10011246291
A new concept of equilibrium in secure strategies (EinSS) in non-cooperative games is presented. The EinSS coincides with the Nash-Cournot Equilibrium when Nash-Cournot Equilibrium exists and postulates the incentive of players to maximize their profit under the condition of security against...
Persistent link: https://www.econbiz.de/10010662671
This paper shows that the adoption of flexible manufacturing techniques by firms leads to a tougher price regime. This need not benefit consumers since the tougher regime deters entry and facilitates segmented market structures. The ability of flexible manufacturing to deter entry is moderated...
Persistent link: https://www.econbiz.de/10005008288
In a model of horizontal product differentiation, we show that local monopolies may exist under free entry when capital is perfectly mobile. In contrast both with the situation of restricted entry and with the zero-profit approach to free entry outcomes of Salop (1979), the unit profit rate of...
Persistent link: https://www.econbiz.de/10005042799
This paper shows that the adoption of flexible manufacturing techniques by firms leads to a tougher price regime. This need not benefit consumers since the tougher regime deters entry and facilitates segmented market structures.
Persistent link: https://www.econbiz.de/10005634005
In a model of horizontal product differentiation, we show that local monopolied may exist under free entry when capital is perfectly mobile. In contrast both with the situation of restricted entry and with the zero-profit approach to free entry outcomens of Salop 91979), the unit profit rate of...
Persistent link: https://www.econbiz.de/10005669312
advertising receipts. We show that this induces the editors of the newspapers to moderate the political message they display to …
Persistent link: https://www.econbiz.de/10005634020
We analyse the rivalry between two TV-channels competing both on the market for audience and the market for advertising …. We identify the nature of TV-programs emerging from this competition, and the quantity of advertising that TV …
Persistent link: https://www.econbiz.de/10005634073