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Persistent link: https://www.econbiz.de/10012130983
In this paper we address the following question: is it more profitable, for an entrant in a differentiatedmarket, to acquire an existing firm than to compete? We illustrate the answer by considering competition inthe banking sector.....
Persistent link: https://www.econbiz.de/10005868688
price competition as well as thecompatibility choice. The final degree of compatibility allows firms to manipulate the …
Persistent link: https://www.econbiz.de/10005868733
This paper investigates the issue of how alternative unionization structures in labour markets affect the choice of product quality differentiation by firms in product markets, and how this determines relative welfare outcomes of different union structures. In the presence of decentralized wage...
Persistent link: https://www.econbiz.de/10014455131
segmented countries, where firms compete inquality and price. The framework is used to analyse governments’ incentives …
Persistent link: https://www.econbiz.de/10005870140
Group Purchasing Organizations (GPOs) increasingly gain in importance with respect to the supply of pharmaceutical products and frequently use multiple or exclusive rebate contracts to exercise market power. Based on a Hotelling model of horizontal and vertical product differentiation, we...
Persistent link: https://www.econbiz.de/10010308280
which incorporates some features of a monopoly, thus changing the pattern of price competition between the firms. In … increase in prices is more intense in highly competitive (low differentiated) markets, (3) the expected price of the low … expected price than the high-quality product. We also show that a progressive growth of specialized advertising vehicles leads …
Persistent link: https://www.econbiz.de/10010317117
In this paper, I compare two-part tariff competition to linear pricing in a vertically differentiated duopoly. Consumers have identical tastes for quality but differ in their preferences for quantity. The main finding is that quality differentiation occurs in equilibrium if and only if two-part...
Persistent link: https://www.econbiz.de/10010263184
activities. We examine two types of competitive pressure: a price decrease in competitive fringe firms and a quality improvement … exogenous price of competitive firms induces the two existent leading firms (one high-quality firm and one mid-quality firm) to …
Persistent link: https://www.econbiz.de/10010332353
This paper analyses a model of vertical product differentiation with one incumbent and one entrant firm. It is shown that if firms can produce only one quality level welfare in this entry game can be lower than in monopoly. This is the case if qualities are strategic complements because the...
Persistent link: https://www.econbiz.de/10010427390