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Weddings with uncertain prospects: Mergers under asymmetric information

Borek, Thomas; Buehler, Stefan; Schmutzler, Armin - 2004

We provide a framework for analyzing bilateral mergers when there is two-sided asymmetric information about firms' types. We show that there is always a no-merger equilibrium where firms do not consent to a merger, irrespective of their type. There may also be a cut-off equilibrium if the...

Persistent link: https://www.econbiz.de/10010315502

Downstream investment in oligopoly

Bühler, Stefan (contributor); Schmutzler, Armin (contributor) - 2003 - [Elektronische Ressource]

We examine cost-reducing investment in vertically-related oligopolies, where firms may be vertically integrated or separated. Analyzing a standard linear Cournot model, we show that: (i) Integrated firms invest more than separated competitors. (ii) Vertical integration increases own investment...

Persistent link: https://www.econbiz.de/10001807376

Competition and innovation : an experimental investigation

Darai, Donja; Sacco, Dario; Schmutzler, Armin - 2009 - Revised version

The paper analyzes the effects of more intense competition on firms' incentives to invest in process innovations. We carry out experiments for two-stage games, where R&D investment choices are followed by product market competition. As predicted by theory, an increase in the number of firms from...

Persistent link: https://www.econbiz.de/10003387554

Intimidating Competitors ? Endogenous Vertical Integration and Downstream Investment in Successive Oligopoly

Buehler, Stefan - 2020

oligopoly. We start from a linear Cournot model to motivate our more general reduced-form framework. For this general framework …

Persistent link: https://www.econbiz.de/10012705917

Innovation and the Emergence of Market Dominance

Athey, Susan; Schmutzler, Armin - 2013

quality-improving investments. In many commonly-studied oligopoly games, such investments are strategic substitutes. We derive … commonly-studied oligopoly models. We also highlight plausible countervailing effects from two distinct sources. First, leading …, when firms are sufficiently patient. Key words: oligopoly games, strategic substitutes, innovation, investment, increasing …

Persistent link: https://www.econbiz.de/10014042210

A product market theory of worker training

Gersbach, Hans; Schmutzler, Armin - 2004 - revised: February 2004

We develop a product market theory that explains why firms invest in general training of their workers. We consider a model where firms first decide whether to invest in general human capital, then make wage offers for each others' trained employees and finally engage in imperfect product market...

Persistent link: https://www.econbiz.de/10011402873

Competition and innovation: An experimental investigation

Darai, Donja; Sacco, Dario; Schmutzler, Armin - 2009

Persistent link: https://www.econbiz.de/10010315529

Asymmetric vertical integration

Buehler, Stefan; Schmutzler, Armin - 2004

We examine vertical backward integration in a reducedform model of successive oligopolies. Our key findings are: (i) There may be asymmetric equilibria where some firms integrate and others remain separated, even if firms are symmetric initially; (ii) Efficient firms are more likely to integrate...

Persistent link: https://www.econbiz.de/10010315532

Self-reinforcing market dominance

Halbheer, Daniel; Fehr, Ernst; Goette, Lorenz; … - 2007

Are initial competitive advantages self-reinforcing, so that markets exhibit an endogenous tendency to be dominated by only a few firms? Although this question is of great economic importance, no systematic empirical study has yet addressed it. Therefore, we examine experimentally whether firms...

Persistent link: https://www.econbiz.de/10010315589

Acquisitions versus entry : the evolution of concentration

Aydemir, Zava (contributor); Schmutzler, Armin (contributor) - 2002 - [Elektronische Ressource]

that all firms play an oligopoly game. We derive conditions under which increasing market concentration arises with myopic …

Persistent link: https://www.econbiz.de/10001729422