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Computer-owners combine complementary goods to a computer-system. They exchange data with others and between different applications. These interdependencies lead to three different network effects, which are explained in the framework of Hotelling models. In the framework of a one-dimensional...
Persistent link: https://www.econbiz.de/10009277780
Persistent link: https://www.econbiz.de/10005674297
We study how competitive pressure influences the make-or-buy decision that oligopolistic firms face between producing an intermediate component in-house or purchasing it from a domestic supplier. We model outsourcing as a bilateral relationship in which the supplier undertakes...
Persistent link: https://www.econbiz.de/10005424462
accusation requires an adequate theory of vertical integration which allows to decide whether a refusal to sell follows … demand function for both the final and the intermediate product. Game theory is invoked to examine whether an integrated firm …
Persistent link: https://www.econbiz.de/10005542661
In this article, we analyze the incentives of vertically integrated oligopolists to concede access to their bottleneck inputs to an entrant in the downstream retail market. We develop a two-stage model, where in the first stage a downstream entrant negotiates an access price with three...
Persistent link: https://www.econbiz.de/10005115569
The aim of this paper is to make a first step towards studying the role of social expenditure and its interaction with corporate taxation in determining the destination of foreign direct investment (FDI) flows. Using panel data for 18 OECD countries and measuring the extent of social welfare...
Persistent link: https://www.econbiz.de/10005001718
The paper discusses the evolution of the oligopoly theory, starting from Augustin Cournot’s seminal contribution until … the most recent developments that extensively exploit the sophisticated tools derived from game theory and mechanism … design. We then show how the oligopoly models have been used to understand the vertical organizations of firms operating in …
Persistent link: https://www.econbiz.de/10005005750
We study the make-or-buy decision of oligopolistic firms in an industry in which final good production requires specialised inputs. Firms’ mode of operation decision depends on both the incentive to economize on costs and on strategic considerations. We explore the strategic incentives to...
Persistent link: https://www.econbiz.de/10010610384
We study the make-or-buy decision of oligopolistic firms in an industry in which final good production requires specialised inputs. Firms’ mode of operation decision depends on both the incentive to economize on costs and on strategic considerations. We explore the strategic incentives to...
Persistent link: https://www.econbiz.de/10010552382
We study how competitive pressure influences the make-or-buy decision that oligopolistic firms face between producing an intermediate component in-house or purchasing it from a domestic supplier. We model outsourcing as a bilateral relationship in which the supplier undertakes relationship...
Persistent link: https://www.econbiz.de/10005836743