Showing 1 - 10 of 123
This paper shows that obligations from debt hinder tacit collusion if equity owners are protected by limited liability. In contrast to its advantageous commitment value in short-run competition, leverage reduces profits from infinite interaction. Contrasting uncorrelated shocks with a cyclical...
Persistent link: https://www.econbiz.de/10009151418
Persistent link: https://www.econbiz.de/10004713317
Persistent link: https://www.econbiz.de/10003115170
Persistent link: https://www.econbiz.de/10002941324
Persistent link: https://www.econbiz.de/10009232819
Persistent link: https://www.econbiz.de/10009232824
Persistent link: https://www.econbiz.de/10013268890
Persistent link: https://www.econbiz.de/10013346393
This paper analyzes the recent mergers in the oil industry. Oil is assumed to be a homogeneous good which is produced by a small number of firms with different unit costs. Merger formation is endogenously explained as a result of cooperative decisions. We show that the mergers are amongst very...
Persistent link: https://www.econbiz.de/10010301795
This paper analyzes the effect of cooperation in manufacturing on firms' inclination to collude in the market. Compared to non-cooperation in manufacturing, coordination of the investments in production yields a higher competitive profit. If firms intensify cooperation and produce in a joint...
Persistent link: https://www.econbiz.de/10010305043