American's Pilot Fighting for Compensation Restoration Once AgainRE: American's Pilot Fighting for Compensation Restoration Once AgainCrank said..." The thing that's really just amazing here is that the laws of supply and demand show that when fares go up, demand goes down. So, what happens when demand goes down? The pilots...
Ronald Goettler Carnegie Mellon and Brett Gordon Columbia. Discussant: Ana Aizcorbe. This paper proposes a model of dynamic oligopoly and applies it to the microprocessor industry. Our findings highlight the "competing-with-itself" aspect of being a monopolist of a durable good: the monopolist must innovate to stimulate demand through...
ABSTRACT The Internet industry is vertically integrated with Internet Backbone Providers IBPs and Internet Service Providers (ISPs.) Although there are many ISPs and IBPs in each stream, both markets are considered independent oligopolies in that there are a few dominant competitors in each market. It is generally accepted...
ABSTRACT We will investigate the different extensions of the Cournot oligopoly model including models with intertemporal demand interaction, including production adjustment cost, pollution treatment cost sharing, and cost interaction. The local asymptotic stability of the steady state is examined in all cases and the stability conditions are compared...
We investigate the impact on profit margins of exchange rate fluctuations in order to examine optimal pricing policy by source countries in the UK car market. We first estimate a nested logit demand model of new cars to calculate model-specific profit margins. Next we use these estimates to analyse the...
New empirical industrial organization NEIO analysis often employs an econometric structural model in which market power exertion is measured via a conduct parameter (Bresnahan 1982, 1989; Lau 1982). Although the NEIO approach is widely accepted and regularly implemented in empirical studies, there is considerable debate about the accuracy of the...
Consumer product manufacturers often compete in dynamic, multi-firm oligopolies using multiple strategic tools. While existing empirical models of strategic interaction typically consider only parts of the more general problem, this paper presents a more comprehensive alternative. Marketing decisions are dynamically optimal, consistent with optimal consumer choice, and responsive to rival...
We study a Cournot industry in which each firm sells multiple quality-differentiated products. We use an upgrades approach, working not with the actual products but instead with upgrades from one quality to the next. The properties of single-product models carry over to the supply of upgrades,...
Two decades after Toyota, Nissan and Honda began grabbing market share from the Big Three American automakers, South Korean upstarts Hyundai and Kia proved that the model could be replicated. Now a new country has appeared in the rearview mirror: China. Its booming domestic auto industry is looking to expand...
I use a consumer choice model for the British supermarket industry to compare the incentives of firms, selecting store characteristics, with the interests of consumers. I perform a series of counterfactual changes to store size and location and rank the alternatives by gains per unit of...
We analyze how the presence of trade unions affects the pattern of mergers in an international oligopoly and the welfare implications thereof. We find that wages for the merger participants are always lower when they merge internationally, rather than nationally. Using a model of endogenous merger...
This article derives a closed-form solution for an equilibrium real options exercise model with stochastic revenues and costs for monopoly, duopoly, oligopoly and competitive markets. Our model also allows one option holder to have a greater production capacity than others. Under a monopolistic environment we find...
The biggest fact affecting the food sector recently has been the 33% increase in per capita real incomes in the UK since 1993. Some people have done much better than others and it is this affluent subsector that is creating the opportunity for lifestyle food choices, such as 'free from'...
1. Introduction Excise taxes take two basic forms: unit taxes based on quantity sold and ad valorem taxes based on sales value. While these two versions of excise taxes are equivalent in perfectly competitive markets, (1) in noncompetitive markets ad valorem taxation has been shown to welfare dominate...
I study merger incentives in a dynamic model under the presence of gradual entry. I consider a repeated game with merger decisions in every period and characterize the set of equilibria. I establish two properties: i a merger for monopoly may not be profitable; ii a ...
I. INTRODUCTION Sir Ronald Fisher remarked that it was "Darwin's chief contribution, not only to Biology but to the whole of natural science, to have brought to light a process by which contingencies a priori improbable, are given, in the process of time, an increasing probability, until it...
I. Introduction Studies of mixed markets, in which state-owned welfare-maximizing public firms compete against profit-maximizing private firms, have become increasingly popular in recent years. (1) Mixed oligopolies are common in developed, developing, and former communist transitional economies. (2) In many countries, competition between public and private firms existed...
This study investigates market conditions when food processor/handler brand advertising, whether undertaken by an investor-owned firm or by a cooperative, will benefit or harm farmers. Addressing this question provides insight into the policy issue of whether and when promotion funds intended to benefit farmers should be used in support of...
Nov 03, 2002 (The Australian Financial Review - ABIX via COMTEX) A new report suggests industries in Asia that are run as virtual oligopolies produce higher returns for investors. The results of the research, by Salomon Smith Barney, runs counter to the argument ...
IS PROFIT a dirty word? A lot of regulators like to think that it might be. Companies that are seen to be earning "abnormal" profits are considered to be exploiting the likes of you and me. The thinking here is a straightforward reflection of the microeconomic...
Articles 2002-05-27
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