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Acquisitions versus entry: The evolution of concentration

Aydemir, Zava; Schmutzler, Armin - 2002

We consider market dynamics in a reduced form model. In the simplest version, there are two investors and several small noninvesting firms. In each period, one investor can acquire a small firm, the other investor decides about market entry. After that all firms play an oligopoly game. We derive...

Persistent link: https://www.econbiz.de/10010315536

Hunting unicorns? Experimental evidence on predatory pricing policies

Edlin, Aaron S.; Roux, Catherine; Schmutzler, Armin; … - 2017

-faire regime, the threat of post-entry price cuts discourages entry, and allows incumbents to charge monopoly prices. Current U …

Persistent link: https://www.econbiz.de/10011784294

Pay-What-You-Want in Competition

Samahita, Margaret - 2015

Pay-What-You-Want (PWYW) pricing schemes are popular in certain industries and not others. We model the seller's choice of pricing scheme under various market structures assuming consumers share their surplus. We show that the profitability and popularity of PWYW depend not only on consumers'...

Persistent link: https://www.econbiz.de/10013208736

An Alternative to Natural Monopoly

Carbonell-Nicolau, Oriol - 2019

than the monopoly allocation, and is, in some cases, efficient. …

Persistent link: https://www.econbiz.de/10012663135

Emission Taxes, Feed-in Subsidies and the Investment in a Clean Technology by a Polluting Monopoly

García-Alaminos, Ángela; Rubio, Santiago J. - 2019

The paper studies the use of emission taxes and feed-in subsidies for the regulation of a monopoly that can produce the … calculated solving a two-stage policy game between the regulator and the monopoly with the regulator acting as the leader of the … output but does not affect the total output. On the other hand, the subsidy leads to the monopoly to reduce the dirty output …

Persistent link: https://www.econbiz.de/10012146433

The welfare effects of endogenous quality choice in cable television markets

Crawford, Gregory S.; Shcherbakov, Oleksandr; Shum, Matthew - 2015

We measure the welfare consequences of endogenous quality choice in imperfectly competitive markets. We introduce the concept of a "quality markup" and measure the relative welfare consequences of market power over price and quality. For U.S. paid-television markets during 1997-2006, we find...

Persistent link: https://www.econbiz.de/10011420559

Cash breeds Success : An Examination of the Role Financing Constraints in Innovation Races

Schroth, Enrique; Szalay, Dezsö - Institut für Schweizerisches Bankwesen <Zürich>; … - 2004

This paper studies the impact of cash constraints on equilibrium research intensities in a patent race between a current owner of the state of the art technology (the incumbent) and entrants. We develop a simple model, where players need to raise funds from imperfectly informed creditors to...

Persistent link: https://www.econbiz.de/10005858096

Developer's Expertise and the Dynamics of Financial Innovation : Theory and Evidence

Herrera, Helios; Schroth, Enrique - Institut für Schweizerisches Bankwesen <Zürich>; … - 2004

We study product innovation and imitation in the market of corporate underwriting with a dynamic model where client switching costs and the bankers expertise in deal structuring characterize the life cycle of a security. While the clientele loyalty allows positive rent extraction, the superior...

Persistent link: https://www.econbiz.de/10005858093

Profitable Innovation Without Patent Protection : The Case of Derivatives

Schroth, Enrique; Herrerah, Helios - Institut für Schweizerisches Bankwesen <Zürich>; … - 2003

Investment banks develop their own innovative derivatives to underwrite corporate issues but they cannot preclude other banks from imitating them. However, during the process of underwriting an innovator can learn more than its imitators about the potential clients. Moving first puts him ahead...

Persistent link: https://www.econbiz.de/10005859083

The Welfare Implications of Non-Patentable Financial Innovations

Schroth, Enrique; Herrerah, Helios - Institut für Schweizerisches Bankwesen <Zürich>; … - 2001

Investment Banks invest in R&D to design innovative securities even when imitation is possible, i.e., when innovations cannot be patented. We show how a financial institution can profit from the development of financial products even if they are unpatentable. For certain types of financial...

Persistent link: https://www.econbiz.de/10005859084