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As a part of their industry or competition policies governments decide whether to allow for free market entry of firms or to regulate market access. We analyze a model where governments (ab)use these policy decisions for strategic reasons in an international setting. Multiple equilibria of this...
Persistent link: https://www.econbiz.de/10001774431
As a part of their industry or competition policies governments decide whether to allow for free market entry of firms or to regulate market access. We analyze a model where governments (ab)use these policy decisions for strategic reasons in an international setting. Multiple equilibria of this...
Persistent link: https://www.econbiz.de/10011508060
We develop a model of vertical innovation in which firms incur a market entry cost and choose a unique level of quality. Once established, firms compete for market shares, selling to consumers with heterogeneous tastes for quality. The equilibrium of the pricing game exists and is unique within...
Persistent link: https://www.econbiz.de/10013315485
As a part of their industry or competition policies governments decide whether to allow for free market entry of firms or to regulate market access. We analyze a model where governments (ab)use these policy decisions for strategic reasons in an international setting. Multiple equilibria of this...
Persistent link: https://www.econbiz.de/10013319864
This paper investigates how an incumbent monopolist can weaken potential rivals or deter entry in the output market by manipulating the access of these rivals in the input market. We analyze two polar cases. In the first one, the input market is assumed to be competitive with the input being...
Persistent link: https://www.econbiz.de/10012733124
This article investigates downstream firms' ability to collude in a repeated game of competition between supply chains. We show that downstream firms with buyer power can collude more easily in the output market if they also collude on their input supply contracts. More specifically, an implicit...
Persistent link: https://www.econbiz.de/10009571506
In a dynamic game between N retailers and a large number of suppliers, I show that inefficient contracting emerges as a mechanism to implement collusion among retailers, building on the natural 'complementarity' between retail and wholesale prices. When efficient collusion is not sustainable,...
Persistent link: https://www.econbiz.de/10014208462
Persistent link: https://www.econbiz.de/10003396330
It is well-established that incumbent firms may try to deter new market entry by pretending to be stronger than they really are (e.g. by imitating the high output level of a low cost monopolist). In this article, we show that in some cases an incumbent may prefer the opposite, namely to...
Persistent link: https://www.econbiz.de/10013094960
Alliances between competitors where an established firm provides access to its marketing and distribution channels are an important real-world phenomenon. We analyze a market where an established firm, firm A, produces a product of well-known quality, and a firm with an unknown brand, firm B,...
Persistent link: https://www.econbiz.de/10014028020