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both crucial for the emergence of outsourcing. The supplier purposefully avoids industry pro.t maximization to enlarge its …
Persistent link: https://www.econbiz.de/10014340231
This paper analyzes a sequential game where firms decide about outsourcing the production of a non-specific input good … Tirole (1984) to characterize the different equilibria. We find that outsourcing generally softens competition in the final … product market. If firms anticipate the impact of their outsourcing decisions on input prices, there may be equilibria where …
Persistent link: https://www.econbiz.de/10001783571
This paper analyzes a sequential game where firms decide about outsourcing the production of a non-specific input good … Tirole (1984) to characterize the different equilibria and find that outsourcing generally softens competition in the final … product market. If firms anticipate the impact of their outsourcing decisions on input prices, there may be equilibria where …
Persistent link: https://www.econbiz.de/10014068136
We examine the strategic use of Corporate Social Responsibility (CSR) in imperfectly competitive markets. The level of CSR determines the weight a firm puts on consumer surplus in its objective function before it decides upon supply. First, we consider symmetric Cournot competition and show that...
Persistent link: https://www.econbiz.de/10011657756
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/10013318548
a Cournot duopoly, and consider feasibility constraints from the perspective of strategic management …
Persistent link: https://www.econbiz.de/10013104355
The paper provides a micro-founded differentiated duopoly illustration of a beauty contest, in which the relative …
Persistent link: https://www.econbiz.de/10012904447
We reconsider the endogenous choice of delegation to a manager by two down-stream firms in both a Cournot and a Bertrand vertical market with network effects. An upstream monopolist charges a two-part tariff for a crucial input. By applying the Nash solution in a centralized bargaining, we show...
Persistent link: https://www.econbiz.de/10012112258
compete vis-à-vis each other, and, consequently, market outcomes. Participants took part in a repeated Bertrand duopoly game …
Persistent link: https://www.econbiz.de/10011569085
This paper analyzes the role of patience in a repeated Bertrand duopoly where firms bargain over which collusive price …
Persistent link: https://www.econbiz.de/10014178725