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Cost inefficiency and Optimal Market Structure in Spatial Cournot Discrimination

Biscaia, Ricardo; Sarmento, Paula - Faculdade de Economia, Universidade do Porto - 2012

This paper analyzes the location patterns of firms in Cournot spatial discrimination setting. The innovation step is that firms are allowed to have different marginal costs of the production. When analyzing the two-stage location-quantity game, we conclude that firms choose the central...

Persistent link: https://www.econbiz.de/10010634133

Models of Spatial Competition: a Critical Review

Biscaia, Ricardo; Mota, Isabel - Faculdade de Economia, Universidade do Porto - 2011

This critical review focuses on the development of spatial competition models in which the location choice by firms plays a major role. Therefore, after a brief review of the roots of spatial competition modeling, this paper intends to offer a critical analysis over its recent developments. The...

Persistent link: https://www.econbiz.de/10009001829

The Relationship between Trigger Price and Punishment Period in Green and Porter (1984) Game made Endogenous

Brandão, António; Guimarães, Luís; Seixas, Carlos - Faculdade de Economia, Universidade do Porto - 2011

Green and Porter (1984) made a huge contribution to Industrial Organization Theory where a trigger price is defined by firms and whenever the price falls below this trigger price, the firms cease to produce at the monopoly level and enter into a punishment period. Our goal with this paper is to...

Persistent link: https://www.econbiz.de/10009320218

Nesting Vertical and Horizontal Differentiation in Two-Sided Markets

Ribeiro, Vitor Miguel; Correia-da-Silva, João; … - Faculdade de Economia, Universidade do Porto - 2014

We develop a model that is a synthesis of the two-sided markets duopoly model of Armstrong (2006) with the nested vertical and horizontal dierentiation model of Gabszewicz and Wauthy (2012), which consists of a linear city with dierent consumer densities on the left and on the right side of the...

Persistent link: https://www.econbiz.de/10010770516

Theory of Semi-Collusion in the Labor Market

Gonzaga, Pedro; Brandão, António; Vasconcelos, Helder - Faculdade de Economia, Universidade do Porto - 2014

We study the effects of cooperative wage setting in industries that use two different types of labor. In particular, we consider a two-stage game where firms hire non-specialized workers in a perfectly competitive labor market and specialized workers that are more productive and expensive, but...

Persistent link: https://www.econbiz.de/10010735926

Asymmetric collusion with growing demand

Brandão, António; Pinho, Joana; Vasconcelos, Hélder - Faculdade de Economia, Universidade do Porto - 2013

divide the cartel profit after entry is a key determinant of the incentives for collusion (before and after entry). In …

Persistent link: https://www.econbiz.de/10010842601

Location Decisions in a Natural Resource Model of Cournot Competition

Biscaia, Ricardo; Sarmento, Paula - Faculdade de Economia, Universidade do Porto - 2013

This article focuses on the location decision of firms when competing in a spatial Cournot duopoly. Our original contribution is that firms are dependent on a natural resource input, which is assumed to be located in one of the extremes of the market, to be able to produce the output sought by...

Persistent link: https://www.econbiz.de/10010842604

The profit-sharing rule that maximizes sustainability of cartel agreements

Correia-da-Silva, João; Pinho, Joana - Faculdade de Economia, Universidade do Porto - 2012

We propose a profit-sharing rule that maximizes sustainability of cartel agreements. This rule is such that the … critical discount factor is the same for all the firms. If a cartel applies this rule, then asymmetries among firms may not … firms differ in their stocks of capital, we find that the cartel is the least sustainable when one of the firms is …

Persistent link: https://www.econbiz.de/10010842610

Sustaining collusion in markets with a general evolution of demand

Correia-da-Silva, João; Pinho, Joana; Vasconcelos, Hélder - Faculdade de Economia, Universidade do Porto - 2014

This paper proposes a general framework to study the sustainability of collusion in markets where demand growth (although deterministic) is not restricted to occur at a constant rate and may trigger future entry. It is shown that, typically, entry occurs later along the collusive path than along...

Persistent link: https://www.econbiz.de/10010842612

Strategic delegation in two-sided markets

Ribeiro, Vitor Miguel - Faculdade de Economia, Universidade do Porto - 2014

In a two-sided market duopoly, we investigate the effects of delegating long run restrictive and unrestrictive decisions to managers by the platforms' owners, the effects of the platforms' ownership establishing long run decisions without managers and the impacts of asymmetric regimes between...

Persistent link: https://www.econbiz.de/10010842618