全部 标题 作者
关键词 摘要

OALib Journal期刊
ISSN: 2333-9721
费用:99美元

查看量下载量

相关文章

更多...

Firms’ Coalitions, Demand Systems and Asymmetric Prices

DOI: 10.4236/tel.2025.153043, PP. 779-787

Keywords: Firms’ Coalitions, Partial Cartels, Mergers and Acquisitions, Joint Ventures, Demand Systems, Asymmetric Prices

Full-Text   Cite this paper   Add to My Lib

Abstract:

We extend Deneckere and Davidson’s model on firms’ incentives to form coalitions to predict which firms are more likely to enter a coalition. In Deneckere and Davidson, all firms have the same incentives to enter a coalition because they are all symmetric and therefore choose symmetric prices. We modify their demand specification to include different cross-price elasticities. With this, we can generate market equilibria where firms have different prices, and therefore different incentives to enter a coalition. Our modified model can inform the construction and estimation of empirical models of coalitions and price formation.

References

[1]  Abrantes-Metz, R. M., Kraten, M., Metz, A. D., & Seow, G. S. (2012). Libor Manipulation? Journal of Banking & Finance, 36, 136-150.
https://doi.org/10.1016/j.jbankfin.2011.06.014
[2]  Abrantes-Metz, R. M., Villas-Boas, S. B., & Judge, G. (2011). Tracking the Libor Rate. Applied Economics Letters, 18, 893-899.
https://doi.org/10.1080/13504851.2010.515197
[3]  Amir, R., Erickson, P., & Jin, J. (2017). On the Microeconomic Foundations of Linear Demand for Differentiated Products. Journal of Economic Theory, 169, 641-665.
https://doi.org/10.1016/j.jet.2017.03.005
[4]  Boffa, F., & Vannoni, D. (2012). Entry and Collusion after Market Opening. Theoretical Economics Letters, 2, 316-322.
https://doi.org/10.4236/tel.2012.23058
[5]  Bresnahan, T. F. (1987). Competition and Collusion in the American Automobile Industry: The 1955 Price War. The Journal of Industrial Economics, 35, 457-482.
https://doi.org/10.2307/2098583
[6]  Daljord, O., Sorgard, L., & Thomassen, O. (2008). The SSNIP Test and Market Definition with the Aggregate Diversion Ratio: A Reply to Katz and Shapiro. Journal of Competition Law and Economics, 4, 263-270.
https://doi.org/10.1093/joclec/nhm032
[7]  Deneckere, R., & Davidson, C. (1985). Incentives to Form Coalitions with Bertrand Competition. The RAND Journal of Economics, 16, 473-486.
https://doi.org/10.2307/2555507
[8]  Jacquemin, A., & Slade, M. E. (1989). Chapter 7. Cartels, Collusion, and Horizontal Merger. In Handbook of Industrial Organization (pp. 415-473). Elsevier.
https://doi.org/10.1016/s1573-448x(89)01010-1
[9]  Katz, M. L., & Shapiro, C. (2002). Critical Loss: Let’s Tell the Whole Story. Antitrust, 17, 49.
[10]  Shapiro, C. (1995). Mergers with Differentiated Products. Antitrust, 10, 23-30.
[11]  Shubik, M., & Levitan, R. (1980). Market Structure and Behavior. Harvard Univ. Press.

Full-Text

Contact Us

service@oalib.com

QQ:3279437679

WhatsApp +8615387084133