Search results for "Monopoly"
showing 10 items of 40 documents
Entry under uncertainty: Limit and most-favored-customer pricing
2015
Abstract In the absence of uncertainty, an incumbent that attempts to prevent entry of rival firms can have no incentive to offer a most-favored-customer (MFC) clause because it could lead to higher post-entry prices. Our analysis suggests that this is not necessarily the case under uncertainty. In the presence of uncertainty, the incumbent can set a limit price that affects the entry decision. Limit pricing involves a pre-entry price different from the static monopoly price, which leads to a signaling cost. We show that part of this cost can be distributed over several periods by means of consumer refunds from the MFC clause. If the discount factor is not very high, the incumbent adopts th…
R&D WITH SPILLOVERS: MONOPOLY VERSUS NONCOOPERATIVE AND COOPERATIVE DUOPOLY
2010
This paper compares industry profit and R&D propensity for a duopoly conducting either noncooperative or cooperative R&D and a monopoly, using two different basic models of strategic R&D. One postulates spillovers in R&D inputs and predicts that equilibrium joint profit and R&D levels are always larger under monopoly. The other postulates spillovers in R&D outputs and sometimes predicts that joint profit and R&D levels are larger under either of the alternative scenarios. In addition, unlike input spillovers, spillovers in R&D outputs sometimes exert a positive effect on both effective and private noncooperative R&D levels.
Emission Taxes, Feed-in Subsidies and the Investment in a Clean Technology by a Polluting Monopoly
2019
The paper studies the use of emission taxes and feed-in subsidies for the regulation of a monopoly that can produce the same good with a technology that employs a polluting input and a clean technology. The second-best tax and subsidy are calculated solving a two-stage policy game between the regulator and the monopoly with the regulator acting as the leader of the game. We find that the second-best tax rate is the Pigouvian tax. The tax implements the efficient level of the dirty output but does not affect the total output. On the other hand, the subsidy leads to the monopoly to reduce the dirty output but also to increase the total output. This increase in total output may yield a larger …
What Drives the Microfinance Lending Rate?
2012
Is the microfinance institution (MFI) able to charge unduly high lending rates and obtain a profitability incompatible with perfect competition? We use a global panel data set of MFIs. The Panzar and Rosse revenue test in static and dynamic versions is employed, together with analyses of price (the lending rate) and return on assets. We control for microfinance specific variables such as average loan and institutional background variables, and also perform estimations in sub-samples of ownership types, regulation, and founder type. We find that the average MFI does not enjoy monopoly market power in its market, but cannot reject that perfect competition or monopolistic competition are bette…
Mixture and Distribution of Different Water Qualities: An Experiment on Alternative Scenarios Concerning Vertical Structure in a Complex Market
2001
We set up a model of water management, which is inspired by the possibility of mixing water of different qualities. Water is supplied to two types of consumers with different preferences for water quality and quantity. A distributional knot may exist which optimally distributes the supplied water in the downstream market. Different scenarios compare experimentally the advantages of a centralized versus a decentralized resource management. We conducted experiments with 14 markets in three different settings, labelled as "upstream monopoly", "upstream duopoly" and "duopoly-monopsony". We find that a two-product monopoly performs better than the duopoly regarding social welfare and volatility …
FOREIGN MONOPOLIES AND TARIFF AGREEMENTS UNDER INTEGRATED MARKETS
2005
In this paper the optimal policy and the stability of a tariff agreement among the importers of a monopolized good that is sold in an integrated market are studied. To analyze the stability, the tariff agreement formation is modelled as a two-stage game. In the first stage each importer decides whether or not to sign the agreement and in the second stage the signatories and non-signatories choose their tariff whereas the monopoly chooses the quantity or the price. The findings show that the optimal policy of the importers depends on which strategic variable is selected by the monopolist but that, on the contrary, this decision has no effects on the level of cooperation that can be reached b…
Sobre la sociedad civil como fuente de pluralismo: interrogantes previos a una afirmación.
2019
Frente a los riesgos del monopolio de significados sobre la vida en común, la sociedad civil puede actuar como fuente de reconocimiento y desarrollo de identidades, pero afirmarlo requiere que previamente se establezcan nuevos puntos de partida para el análisis sobre su significado. Apoyados en esta premisa, proponemos un cuestionamiento a la apropiación teórica y práctica que desde la dimensión política se ha hecho y establecemos la redefinición de lo cívico como el sustento para un tipo de pluralismo basado en la capacidad para expresar y conocer por medio de la razón.
Political Legitimation and European Public Spaces: Communication as Practice and Resource
2018
In this chapter, the author offers an analysis of European public spaces and follows with a discussion of the transformations in the European Commission’s communication strategy since September 2004. For the first time, the European Commission openly challenged the monopoly of political legitimacy of national political institutions. It was involved in the construction of a new communication strategy that would fill the gap between supranational segmented publics and general national publics. This risky political move involved the redefinition of the status of political communication, the reinforcement of the communication aspect in all of the Commission’s activities, the recruitment of new …
A bargaining model of Farrell inefficiency
1998
Abstract An enormous number of empirical papers have estimated technical efficiency, the distance of firms inside a frontier, following the model of Farrell (Farrell, 1957. The measurement of productive efficiency. Journal of the Royal Statistical Society Series A 120 (3), 253–290). We propose a theory that explains the distance these empirical papers seek to measure. The theory is based on the idea that workers can bargain low `effort' (high crew sizes etc.) if they and the firm have some monopoly power. We provide simple theoretical expressions for the empirical measures of technical and allocative efficiency and compare them to those in the statistical literature. We also consider the re…
Reprocessing of polyethyleneterephthalate and characterisation of monopolymer blends of virgin and recycled polymers
1997
Recycling of polyethyleneterephthalate (PET from bottles is considered by changing both reprocessing machines and the effect of humidity. The rheological and mechanical properties of this recycled material remain very close to that of the virgin material provided that a careful drying is carried out before any melt operation. The reprocessing has been carried out mainly in view of the use of this secondary material in blends with virgin PET-monopolymer or homopolymer blends. Indeed, this use is a common industrial practice to reuse plastic scraps. Most monopolymer blends show properties between those of the two components but in some cases lower than those expected on the basis of an additi…