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Do multinational firms wield more market power than their domestic counterparts? Using Hungarian firm-level data between 1993 and 2007, we find that markups are 19 percent higher for foreign-owned firms than for domestically owned firms. Moreover, markups for domestically owned firms are...
Persistent link: https://www.econbiz.de/10011284902
increasing offshoring activity increases competition in the final goods market, leading to a progressive vertical disintegration … of the supply chains. Initially, the firms that decide to explore offshoring potential choose integration. As competition … fully domestic supply chains, the increasing competition promotes a sequential disintegration of the domestic intermediate …
Persistent link: https://www.econbiz.de/10013332242
constraints, the resulting industrial organization is called Bertrand competition …
Persistent link: https://www.econbiz.de/10012954856
. Price effects are determined by factors that are either directly observable by competition authorities or can be bounded …
Persistent link: https://www.econbiz.de/10013218562
In general, bundles are supplied with discount. Thus bundles are pro-competitive in view of increasing consumers' welfare. On the other hand, bundles are anti-competitive because of leveraging market power from dominant tying-good market to competitive tied-good market, intensifying entry...
Persistent link: https://www.econbiz.de/10013117778
both prices and quantities (capacity levels) within a simple duopoly market setting where products are asymmetrically …, may not fully cover market demand for an incumbent duopoly …
Persistent link: https://www.econbiz.de/10012896357
explore several differential games to simulate the competition between two firms in Price, in Advertising, and Price and … mathematical models developed and analysed allow the simulation of duopolistic competition for a very diverse set of different … become a good base for developing mathematical models of imperfect competition integrating more variables and more firms …
Persistent link: https://www.econbiz.de/10013057420
(FDIs). Here we propose an explanation to this apparent puzzle by exploiting the intensity of competition in a Bertrand … duopoly with convex costs where the two firms enter in a new market. We adopt Dastidar's (1995) approach, delivering a … continuum of Bertrand-Nash equilibria ranging above marginal cost pricing, to show that softening competition may indeed more …
Persistent link: https://www.econbiz.de/10011731498
In this paper we study the choice between exporting and foreign direct investment (FDI) in the Cournot duopoly … include: a monopoly FDI equilibrium, a monopoly exporting equilibrium, a domestic monopoly equilibrium, a duopoly FDI … equilibrium, a duopoly exporting equilibrium, and no entry equilibrium. …
Persistent link: https://www.econbiz.de/10012010858
U.S. Multinational enterprises (MNEs) are dominant producers in the economy, yet they invest considerably less relative to their operating scales and exhibit much lower Tobin's q than domestic firms. Counterintuitively, investment and Tobin's q plunge despite concurrent productivity increase...
Persistent link: https://www.econbiz.de/10013240853