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How do market structures affect decisions on vertical integration

Matsushima, Noriaki; Mizuno, Tomomichi - 2010

We provide a simple model to investigate decisions on vertical integration/separation. The key feature of this model is that more than one input is required for the final products of the local downstream monopolists. Depending on their cost structure, downstream firms' decisions on vertical...

Persistent link: https://www.econbiz.de/10010332409

Merger without cost advantages

Huck, Steffen; Konrad, Kai A.; Mueller, Wieland - 2005

The seminal paper by Salant, Switzer and Reynolds (1983) showed that merger in a standard Cournot framework with linear demand and linear costs is not profitable unless a large majority of the firms are involved in the merger. However, many strategic aspects matter for firm competition such as...

Persistent link: https://www.econbiz.de/10010261187

Cournot Competition between Teams: An Experimental Study

Schipper, Burkhard C.; Raab, Philippe - 2004

In the economic literature on market competition, firms are often modeled as single decision makers and the internal organization of the firm is neglected (unitary player assumption). However, as the literature on strategic delegation suggests, one can not generally expect that the behavior of...

Persistent link: https://www.econbiz.de/10010263110

Welfare effects of outsourcing in duopolistic markets

König, Jan - 2010

This paper shows the strategic aspects of international outsourcing in a duopolistic market. Due to different costs of integrated production and outsourcing, the choice of a firm influences the strategy of the competitor via the output price. Therefore, the resulting market constellation depends...

Persistent link: https://www.econbiz.de/10010303910

Electronic coordination in oligopolistic markets: Impact on transport costs and product differentiation

Bandulet, Martin; Morasch, Karl - 2002

Produktdifferenzierung eigentlich erhöhen. Wir analysieren die Interaktion der Investitionsentscheidungen in transportkostensenkende … elektronische Koordination und in verstärkte Produktdifferenzierung in einem Duopol mit räumlich getrennten Märkten. Wir zeigen … Parameterbereiche existieren in denen die Unternehmen nach einer exogenen Senkung der Transportkosten die Produktdifferenzierung …

Persistent link: https://www.econbiz.de/10010300398

Capacity Choice under Uncertainty with Product Differentiation

Behrens, Christiaan; Lijesen, Mark - 2012

This article analyses the capacity-then-price game for a duopoly market. We add to the literature by explicitly taking product differentiation into account. We study the impact of capacity costs, demand uncertainty, and vertical and horizontal product differentiation on equilibrium capacities,...

Persistent link: https://www.econbiz.de/10010326472

Environmental Quality in a Differentiated Duopoly

Farzin, Y. Hossein; Akao, Ken-Ichi - 2006

In a duopoly industry with environmentally differentiated products, we examine the effects of introducing a mandatory environmental quality standard on firms' environmental quality choices, profits, and the average environmental quality offered by the industry. We show that at low standard...

Persistent link: https://www.econbiz.de/10010333078

A Model of Vertical Oligopolistic Competition

Reisinger, Markus; Schnitzer, Monika - 2008

This paper develops a model of successive oligopolies with endogenous market entry, allowing for varying degrees of product differentiation and entry costs in both markets. Our analysis shows that the downstream conditions dominate the overall profitability of the two-tier structure while the...

Persistent link: https://www.econbiz.de/10010427530

Bertrand and price-taking equilibria in markets with product differentiation

Coloma, Germán - 2008

In this paper we show that a homogeneous-product market with multiple Bertrand equilibria becomes a market with a single Bertrand equilibrium when we introduce a small degree of product differentiation. When differentiation tends to zero, that Bertrand equilibrium converges to the unique...

Persistent link: https://www.econbiz.de/10010323325

Market concentration and product variety under spatial competition : evidence from retail gasoline

Goetz, Georg; Gugler, Klaus - 2004

We show that for a spatially differentiated economy reduced product variety is the likely outcome of mergers except in cases where exit costs in relation to (outlet-specific) fixed costs are high. Our empirical analysis of the Austrian retail gasoline market confirms that increases in...

Persistent link: https://www.econbiz.de/10010261269