Showing 1 - 10 of 222
We study a sequential Bertrand game with one dominant market incumbent and multiple small entrants selling homogeneous products. Whilst the equilibrium for the case of a single entrant is well-known from Gelman and Salop (1983), we derive properties of the N-firm equilibrium and present an...
Persistent link: https://www.econbiz.de/10010686998
We experimentally study price-quantity competitions in duopoly and triopoly markets and compare the results with the respective mixed strategy equilibria. The equilibrium does not predict experimental outcomes adequately, but we find indications for a reactive strategy in the experiments.
Persistent link: https://www.econbiz.de/10010836308
We analyse bonus payments for officials, who transfer payments truthfully to the government rather than collecting bribes. We show that optimised bonus payments are always beneficial to the government, making them a more effective anti-corruption measure than simple wage increases.
Persistent link: https://www.econbiz.de/10010665681
We present the results of an empirical study on German customers' motives to participate in the shareconomy. We focus on four different industries with two companies each: accommodation renting (Airbnb vs. Couchsurfing), car sharing (DriveNow vs. tamyca), commodities (Leihdirwas vs. WHY own it)...
Persistent link: https://www.econbiz.de/10011165800
I study a game with one market incumbent and a small entrant in a duopoly with perfectly substitutable products. Firms face a sequential Bertrand competition. Limiting the initial capacity (Judo economics) is a plausible entry strategy for the small firm. If we, however, introduce asymmetry in...
Persistent link: https://www.econbiz.de/10010635809
The theory of "Judo Economics" describes an optimal entry strategy for small firms. Using a capacity limitation, small firms force dominant market incumbents to accommodate. In this article, we study the power of Judo economics as an entry strategy in different market environments. We find...
Persistent link: https://www.econbiz.de/10010635811
Positive effects of multimarket activities on cooperation between firms are widely acknowledged. We study these effects in a setting with home market asymmetries as is typical for global competition. In our multimarket duopoly experiment each firm has a home market but may also enter the other...
Persistent link: https://www.econbiz.de/10010758357
Corporate social responsibility (CSR) is a phenomenon of increasing interest. Today, it is practiced in most countries around the globe and studied in various fields of academia. However, the focus still lies on Western developed countries, their understanding, and implementation of CSR. This...
Persistent link: https://www.econbiz.de/10011276417
I study a market entry game with price competition and perfectly substitutable products. Limiting the initial capacity (Judo economics) is a plausible entry strategy. I show that under asymmetry in production cost or product quality, capacity limitation can become obsolete.
Persistent link: https://www.econbiz.de/10010662391
Small monopoly trade unions decide upon the wage rate per hour and the hours of work subject to firm's demand for union members. Since the resulting Nash equilibrium is characterized by excess unemployment, we study the employment and welfare effects when trade unions try to coordinate their...
Persistent link: https://www.econbiz.de/10005533241