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Price competition and market structure : the impact of cartel policy on concentration in the UK

Symeonidis, George - In: The journal of industrial economics 48 (2000) 1, pp. 1-26

Persistent link: https://www.econbiz.de/10001455395

Price Competition and Market Structure : The Impact of Cartel Policy on Concentration in the UK

Symeonidis, George - 2000

This paper examines the impact of firms' conduct on market structure. It studies the evolution of concentration in UK … competition has a positive effect on concentration in exogenous sunk cost industries as well as in advertising-intensive and R …&D-intensive industries. The concentration-market size relationship, while negative in exogenous sunk cost industries, breaks down in …

Persistent link: https://www.econbiz.de/10014146871

Fixed costs matter

Kamphorst, Jurjen; Mendys-Kamphorst, Ewa; Westbrock, Bastian - 2018

According to standard economic wisdom, fixed costs should not matter for pricing decisions. However, outside economics, it is widely accepted that firms need to increase their prices after a fixed cost rise. In this note, we show that a liquidity-constrained firm that maximizes lifetime profits...

Persistent link: https://www.econbiz.de/10011936060

Cross-industry heterogeneity in export participation : the role of scale economies in R&D

Ferguson, Shon - 2012

This paper shows that the R&D intensity of an industry plays an important role in determining international trade patterns via its effect on scale economies. I first develop a model of trade with heterogeneous firms where firms compete with each other by spending on fixed product development...

Persistent link: https://www.econbiz.de/10009632205

A Note on the Relation between Size, Ownership Status and Plant's Closure : Sunk Costs vs. Strategic Size Liability

Colombo, Massimo G. - 2009

In this paper we test both sunk cost and strategic size liability predictions by looking at the exit behavior of a sample of Italian manufacturing plants. For this purpose, we focus on plants' size and ownership status. In particular, we distinguish independent plants from plants that belong to...

Persistent link: https://www.econbiz.de/10012764707

Entry and Exit Behavior in the Absence of Sunk Costs : Evidence from a Price Comparison Site

Haynes, Michelle; Thompson, Steve R. - 2011

This paper explores entry and exit at a price comparison site (PCS) where the sunk costs of participation are effectively zero. We first use a panel of 295 products on NexTag.com to estimate an error correction model of net entry. While the results support our characterization of the PCS as a...

Persistent link: https://www.econbiz.de/10014042092

Sunk Cost Fallacy, Self-control, and Contract Design

Zhang, Xing; Iyer, Ganesh; Xu, Xiaoyan; Chong, Juin-Kuan - 2021

This paper examines the sunk cost fallacy as a self-commitment device in mitigating self-control problems and analyzes its implications for contract design. The sunk cost fallacy can lead to over-consumption and escalation of commitment. We show that consumers anticipate the fallacy ex-ante, and...

Persistent link: https://www.econbiz.de/10013216658

Exit, Sunk Costs and the Selection of Firms

Garella, Paolo G.; Richelle, Yves - 2000

This paper aims to identify the cost characteristics of exiting firms whenever firms are playing an infinite horizon supergame with time-invariant cost and demand functions. With more than two firms, the problem of which firms exit is quite similar to a coalition formation one. Solving this...

Persistent link: https://www.econbiz.de/10014194821

The effect of banking market structure on the volatility of growth of manufacturing sectors in developing countries

Hoxha, Indrit - In: Journal of economics and finance 37 (2013) 4, pp. 528-546

Persistent link: https://www.econbiz.de/10010345815

May it be a little bit more of market power? : on productivity growth and competition

Steinbrunner, Philipp R. - In: Journal of industry, competition and trade : from … 23 (2023) 3/4, pp. 123-170

Persistent link: https://www.econbiz.de/10014452672