Journal of Industry, Competition and Trade
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Asymmetric Payoffs and Spatial Competition
Journal of Industry, Competition and Trade - Tập 17 - Trang 29-41 - 2016
We investigate the location choice of two firms whose objectives are the weighted average of their own profit and social welfare, in which they simultaneously decide their locations before setting their prices. The purpose of this paper is to examine whether the asymmetric locations are influenced by the asymmetry of the firms’ objectives or by the asymmetry of firms’ marginal costs. We show that,......
Flexible Ubers and Fixed Taxis: the Effect of Fuel Prices on Car Services
Journal of Industry, Competition and Trade - Tập 21 - Trang 139-168 - 2021
This paper is the first to empirically compare the impact of fuel price on ridership of taxicabs and transportation network companies (TNCs) like Uber and Lyft. We build a theoretical model of the car service market to demonstrate how drivers under the two systems may have different reactions to fuel prices. Although all drivers pay for their own gasoline, TNC drivers have more flexibility in redu......
Simulating Effects of Business Decisions on Regional Economy Experience During the California Energy Crisis
Journal of Industry, Competition and Trade - Tập 2 - Trang 143-158 - 2002
Over the last 30 years, simulation models have become accepted by the business sector as a means to understand the interaction of business decisions with their market environment. Public utilities have a history in using static models to forecast demand growth and develop “least cost resource plans.” The effects of the California energy crisis were felt well outside the borders of that state. In t......
Pricing Strategies and Partial Privatization Policy Based on Complementary Competitive Market
Journal of Industry, Competition and Trade - Tập 22 - Trang 99-123 - 2022
This study investigates pricing strategies and privatization policies by assuming an asymmetric mixed duopoly market for complementary services. In addition, this study examines how technology affects the relationship between the degree of privatization and the degree of complementarity. The main results are as follows: When discriminatory pricing is adopted, the relationship between the degree of......
Weather as a Competitive Factor between Local and Foreign Manufacturing Companies in Russia
Journal of Industry, Competition and Trade - Tập 16 - Trang 499-513 - 2016
Globalisation has sparked academic interest in companies’ competitive factors and a myriad of internal and external competitive factors have been studied. However, to our knowledge the weather of the host country has not been under study even though weather has been demonstrated to affect economic activity. This paper utilises a company-level panel data to analyse if weather has an impact on domes......
Diversity and Quantity Choice in a Horizontally Differentiated Duopoly
Journal of Industry, Competition and Trade - Tập 20 - Trang 689-708 - 2020
The Hotelling model is extended where not only can consumers choose to buy from both sellers (multi-brand purchase), buying multiple units from one seller is also considered (within-brand multi-unit purchase). When an increase of the demand for within-brand multi-purchase exceeds a threshold: (i) firms’ strategies are switched from single-brand equilibrium with higher prices to multi-brand equilib......
Asymmetric Collusion with Growing Demand
Journal of Industry, Competition and Trade - Tập 14 - Trang 429-472 - 2013
We characterize collusion sustainability in markets where demand growth triggers the entry of a new firm whose efficiency may be different from the efficiency of the incumbents. We find that the profit-sharing rule that firms adopt to divide the cartel profit after entry is a key determinant of the incentives for collusion (before and after entry). In particular, if the incumbents and the entrant ......
Incentives and Impacts of Vertical Coordination in a Food Production-Marketing Chain: A Non-cooperative Multi-Stage, Multi-Player Analysis
Journal of Industry, Competition and Trade - Tập 18 - Trang 59-95 - 2017
Vertical coordination in the form of contracts and integration is common where changing consumer preferences require producers to adapt to changing market situations that require a steady supply of quality controlled products. We identify two vertical coordination mechanisms that are common in the real world but often ignored by the literature due to their inherent complexity. Using economic model......
Does New Information Technology Lower Media Quality? The Paradox of Commercial Public Goods
Journal of Industry, Competition and Trade - Tập 14 - Trang 145-157 - 2013
We define commercial public goods as goods that are broadcast via television, radio, newsprint, or websites for which consumption is non-rival and non-exclusive, and revenue is generated mainly through advertising alongside a product in a two-sided market. With new information technology the fixed cost of entry in these markets has substantially declined. We demonstrate that as fixed costs of entr......
Absorptive Capacity and Geographical Distance Two Mediating Factors of FDI Spillovers: a Threshold Regression Analysis for Spanish Firms
Journal of Industry, Competition and Trade - Tập 17 - Trang 1-28 - 2016
This paper investigates the effect of foreign direct investment on productivity growth in the manufacturing industries of Spain. A theoretical model that includes the effects of technological gaps and absorptive capacity, both presenting nonlinear relationships is proposed. A sample of 2722 Spanish manufacturing firms from 1993 to 2006 was used. Threshold regression made it possible to contrast th......
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