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This paper examines the effects of exclusive dealing contracts offered by an incumbent distributor to an incumbent manufacturer with entrants in both manufacturing and distribution sectors. It is well-known that a potential entry threat is welfare increasing under homogenous price competition,...
Persistent link: https://www.econbiz.de/10008642757
it was originally thought of. Instead, we find patterns of collusion among the major manufacturing groups in Italy …
Persistent link: https://www.econbiz.de/10011199663
it was originally thought of. Instead, we find patterns of collusion among the major manufacturing groups in Italy …
Persistent link: https://www.econbiz.de/10011039039
Melnik et al. [Melnik, A., Shy, Oz, Stenbacka, R. Assessing market dominance. Journal of Economic Behavior and Organization 68, 63-72] have proposed a new statistic to assess market dominance. In this comment we expand their discussion of certain mathematical properties in their analysis and...
Persistent link: https://www.econbiz.de/10008539667
In this paper, we discuss the case of the integration between NSK and Amatsuji Steel Ball by using the successive oligopoly model. We show that the integration does not lead to input foreclosure. However, it leads to customer foreclosure, if the fixed cost of a rival firm in the upstream market...
Persistent link: https://www.econbiz.de/10008562793
In a supplementary note to Ghosh and Morita ("Social desirability of free entry: a bilateral oligopoly analysis," 2007, IJIO), an example has been used to show that the condition for insufficient entry holds under the right-to-manage model of a vertically related industry. Using a linear demand...
Persistent link: https://www.econbiz.de/10008563031
We develop a model of retail competition and negotiations with an upstream supplier for several firms of different sizes. Contrary to existing thinking, we demonstrate that the larger a buyer the less countervailing power he possesses over the supplier. The reason for this is that a buyer's...
Persistent link: https://www.econbiz.de/10008836545
depends on the degree of collusion among leaders. When leaders cut production in order to raise the price, followers have …
Persistent link: https://www.econbiz.de/10010693316
This note shows that the pro-competitive effect of pre-commitments is robust to Stackelberg-like market structures. Although our results are in line with Allaz and Vila (1993), the two equilibria differ substantially. Sequential interactions foster a monopolization of the contract market and a...
Persistent link: https://www.econbiz.de/10008465223
Most of the literature on price discrimination in input markets has focused on linear per-unit prices used by a monopolist supplier. Here, we provide a complete characterization of the equilibrium two-part tariffs, which can allow the monopolist supplier to obtain (at a minimum) the profit that...
Persistent link: https://www.econbiz.de/10011278552