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We set up a model to analyze the effects of mergers between sellers of complementary components where firms invest in … compatibility and can engage in bundling. We consider the impact of merger on prices, investment and consumer surplus. We also …
Persistent link: https://www.econbiz.de/10012001659
In this paper, two pairs of complementors have to decide whether to merge and eventually bundle their products. Depending on the degree of competitive pressure in the market, either both pairs decide to merge (with or without bundling), or only one pair merges and bundles, while rivals remain...
Persistent link: https://www.econbiz.de/10013109910
good. Focusing only on strategic reasons, vertical mergers arise at equilibrium only when composite goods are very … differentiated or when the number of producers is large while horizontal mergers arise otherwise. When efficiencies are considered … demanding when dealing with horizontal mergers in composite goods industries. …
Persistent link: https://www.econbiz.de/10010503326
In this paper, two pairs of complementors have to decide whether to merge and eventually bundle their products. Depending on the degree of competitive pressure in the market, either both pairs decide to merge (with or without bundling), or only one pair merges and bundles, while rivals remain...
Persistent link: https://www.econbiz.de/10011731257
While competition between firms producing substitutes is well understood, less is known about rivalry between complementors. We study the interaction between firms in markets with one-way essential complements. One good is essential to the use of the other but not vice versa, as arises with an...
Persistent link: https://www.econbiz.de/10012732764
The paper examines incentives for exclusive distribution of premium television content such as live sports and Hollywood movies. Static analysis shows that a pay TV operator with premium content always chooses to supply its retail rival, using per-subscriber fees to soften competition....
Persistent link: https://www.econbiz.de/10011084070
mergers. Finally, we derive clear-cut policy implications. …
Persistent link: https://www.econbiz.de/10005015545
(predatory price standard or foreclosure standard) and the implementation of the distinct product and coercion test for tying … anticompetitive foreclosure. It seems to us that in Europe, consumer detriment is found easily and it is not always a requirement for …
Persistent link: https://www.econbiz.de/10005622690
This paper attempts to give a meaning to the empty concept of subsidiarity. It examines various kinds of government activity with respect to the optimal layer of government in Europe at which these activities should be performed. The paper criticizes Europe's industrial policies and its...
Persistent link: https://www.econbiz.de/10005791864
This paper analyzes tying and bundling as an entry deterrence tool. It shows that a multi-product firm can defend its monopoly position in one market via tying even when it does not have market power in another market. This is shown on a model with two complementary goods, each of which is...
Persistent link: https://www.econbiz.de/10005146541