nep-com New Economics Papers
on Industrial Competition
Issue of 2012‒02‒08
eleven papers chosen by
Russell Pittman
US Department of Justice

  1. Equilibrium strategic overbuying By Éric Avenel, University of Rennes 1 - CREM-CNRS, France; Clémence Christin, Düsseldorf Institute for Competition Economics, Deutschland
  2. Trade Liberalization, Mergers and Acquisitions, and Intra-Industry Reallocations By Peter Arendorf Bache; Anders Laugesen
  3. A taxonomy of innovation networks By Schön, Benjamin; Pyka, Andreas
  4. Is Public-Private Partnership Obsolete? By Claude Ménard
  5. Determinants of E-commerce adoption by franchisors: Insights from the U.S. market By Rozenn Perrigot, Graduate School of Management (IGR-IAE), University of Rennes 1 & ESC Rennes School of Business - CREM-CNRS, France; Thierry Pénard, University of Rennes 1 - CREM-CNRS, France
  6. Coffee Differentiation: Demand Analysis at Retail Level in the US Market By Alamo, Carmen I.; Malaga, Jaime
  7. The Implicit Prices of Finfish and Shellfish Attributes and Retail Promotion Strategies: Hedonic Analysis of Weekly Scanner Data in the U.S. By Gold, Glen; Sherry, Larkin
  8. Factors Affecting Quality Grade Discounts for Fed Cattle By Hogan, Robert J. Jr.; Carlberg, Jared G.; Ward, Clement E.; Peel, Derrell S.
  9. An Estimation of the Demand for Dried Distiller Grains by the Cattle Feeding Industry: A Combination of Survey Methods and Market Projections By Wright, Andrew P.; Mitchell, Donna; Hudson, Darren
  10. The reform process of the railway sector in Europe: A disaggregated regulatory approach By Knieps, Günter; Zenhäusern, Patrick
  11. Geographical Analysis of US Green Sector Industry Concentration By Register, D. Lane; Lambert, Dayton M.; English, Burton C.; Jensen, Kimberly L.; Menard, R. Jamey; Wilcox, Michael D.

  1. By: Éric Avenel, University of Rennes 1 - CREM-CNRS, France; Clémence Christin, Düsseldorf Institute for Competition Economics, Deutschland
    Abstract: We consider two firms competing both to sell their output and purchase their input from an upstream firm, to which they offer non-linear contracts. Firms may engage in strategic overbuying, purchasing more of the input when the supplier is capacity constrained than when it is not in order to exclude their competitor from the final market. Warehousing is a special case in which a downstream firm purchases more input than it uses and disposes of the rest. We show that both types of overbuying happen in equilibrium. The welfare analysis leads to ambiguous conclusions.
    Keywords: entry deterrence, overbuying, vertical contracting
    JEL: L12
    Date: 2011–12
  2. By: Peter Arendorf Bache (Department of Economics and Business, Aarhus University, Denmark); Anders Laugesen (Department of Economics and Business, Aarhus University, Denmark)
    Abstract: This paper presents a Melitz-type model of international trade in final goods and Grossman-Hart-Antràs input sourcing by heterogeneous firms. We show how firms self-select into different organizational forms in a continuum of industries with different characteristics. Next, we show how a liberalization of trade leads to short run increases in the number of firm mergers and acquisitions and potentially new gains from trade. Finally, we show how the relative prevalence of integrating firms is increasing in some industries while constant in all others.
    Keywords: international trade, firm heterogeneity, make-or-buy decision, export behavior, productivity gains, M&As
    JEL: D23 F12 F14 F15 L2
    Date: 2012–01–26
  3. By: Schön, Benjamin; Pyka, Andreas
    Abstract: In this discussion paper we develop a theory-based typology of innovation networks with a special focus on public-private collaboration. This taxonomy is theoretically based on the concept of life cycles which is transferred to the context of innovation networks as well as on the mode of network formation which can occur either spontaneous or planned. The taxonomy distinguishes six different types of networks and incorporates two plausible alternative developments that eventually lead to a similar network structure of the two types of networks. From this, important conclusions and recommendations for network actors and policy makers are drawn. --
    Date: 2012
  4. By: Claude Ménard (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon Sorbonne)
    Abstract: Public-Private Partnership has been high on the agenda of public decision makers since the 1990's. Primarily a contractual approach to the delivery of infrastructures, goods and services traditionally provided by the public sector or by private operators submitted to tight regulation, PPP is also a very special contractual practice as it seeks to introduce market-type relationships in a context in which non-market forces play a major role. An important consequence is the overlapping of decision rights as well as property rights, which exposes PPP to a double alignment problem, organizational and institutional. Away from the ideological controversies about the legitimacy of PPP in provisioning public goods, this chapter focuses on problems rooted in the very nature of PPPs and the actual design of their supportive contracts, as well as in the institutions in which they are embedded and that define the capacity to implement and monitor these arrangements properly.
    Keywords: Public-Private Partnership; transaction costs; organization; infrastructures; misalignment
    Date: 2011–10–28
  5. By: Rozenn Perrigot, Graduate School of Management (IGR-IAE), University of Rennes 1 & ESC Rennes School of Business - CREM-CNRS, France; Thierry Pénard, University of Rennes 1 - CREM-CNRS, France
    Abstract: E-commerce has grown tremendously over the past decade. This paper focuses on E-commerce adoption within the franchising sector. We formulate various hypotheses on the factors that influence the adoption of an E-commerce strategy by franchisors, namely the percentage of company-owned stores in the network, network size and age, franchisor resources (franchising fees and franchising royalties), and the allocation of exclusive territories to franchisees. The empirical study relies on a sample of 486 franchise networks in the U.S. market. Our findings suggest that the percentage of company-owned stores and the brand image, as represented by network size, both exert a significant and positive impact on the adoption of an E-commerce strategy, whereas network age and franchising royalties exert a significant and negative impact on the adoption of such a strategy. These findings are discussed with respect to previous research results.
    Keywords: E-commerce, franchising, determinants, plural form, brand image, franchisors' resources
    Date: 2012–01
  6. By: Alamo, Carmen I.; Malaga, Jaime
    Abstract: Scanned data was used to estimate US coffee demand using an AIDS model. The estimated elasticities have the expected signs and magnitude. Differentiated coffees are complements for regular and unclassified while regular and unclassified coffees are substitutes. These results could be useful in designing marketing strategies by coffee suppliers.
    Keywords: demand, coffee, differentiation, Demand and Price Analysis,
    Date: 2012
  7. By: Gold, Glen; Sherry, Larkin
    Abstract: Using AC Neilson retail scanner data on U.S. frozen finfish and shellfish sales from 2007-2010, hedonic models of each market estimated price discounts following the Deepwater Horizon oil spill and as a result of promotional activities, and premiums and discounts for select products labeled âwildâ and âimportedâ, respectively.
    Keywords: Hedonic Analysis, Scanner Data, Finfish, Shellfish, Fisheries, Implicit Prices, Product Attributes, Promotion, Labeling, Deepwater Horizon Oil Spill, Demand and Price Analysis,
    Date: 2012
  8. By: Hogan, Robert J. Jr.; Carlberg, Jared G.; Ward, Clement E.; Peel, Derrell S.
    Abstract: Prices for Choice and Select grade fed cattle are derived from wholesale and retail beef markets. Choice-Select price discounts are a key component of fed cattle pricing, whether packers purchase fed cattle on a live weight, dressed weight, or grid. This study identifies supply, demand, and other factors affecting the Choice-Select discount series using an adaptive expectations model. It is found that the lagged value of the discount as well as the percentage grading Choice exert statistically significant influences on the discount, while neither the boxed beef price nor seasonality affect the discount.
    Keywords: Choice-Select discount, marketing, prices, quality, Demand and Price Analysis, Marketing,
    Date: 2012–01–17
  9. By: Wright, Andrew P.; Mitchell, Donna; Hudson, Darren
    Keywords: Livestock Production/Industries, Production Economics,
    Date: 2012–01
  10. By: Knieps, Günter; Zenhäusern, Patrick
    Abstract: The railroad package of 2001 focusing on access regulation is in the process of a reform. Particularly, the European Commission intends to remove the obstacles to fair competition that have been identified since 2001. In this context, the paper points out the relevance of the disaggregated regulatory approach. It is necessary to differentiate between infrastructure components which are monopolistic bottlenecks (e.g. railway tracks) and competitive components (e. g. service functions like ticketing). Competition on the markets for railway transport services requires non-discriminatory access to the railway infrastructures. As well the horizontal interoperability between national railway networks is a prerequisite that full competition on European markets for railway services can evolve. Train access charges should provide incentives for the different track companies to participate in collaborations offering international cross-border based track capacities, whereas a regulatory prescription of international track corridors conflicts with the competence to allocate the track capacities of the different track companies. Finally, the complex question of the interplay between discrimination and the deficit problem is addressed in order to present solutions to avoid crosssubsidization between track infrastructure and markets for transport services and to guarantee the efficient usage of public funds. --
    Date: 2011
  11. By: Register, D. Lane; Lambert, Dayton M.; English, Burton C.; Jensen, Kimberly L.; Menard, R. Jamey; Wilcox, Michael D.
    Abstract: This paper analyzes the geographic distribution of âgreen energyâ sector clustering in the lower 48 United States using recent developments in industry concentration analysis. Evidence suggests that the ten green energy subsectors and the aggregate of the firms comprising the green energy sector are regionally concentrated. Positive changes in industry concentration from 2002 to 2006 tended to be greatest in non-metropolitan counties, suggesting comparative advantage with respect to site location for the composite of firms making up these sectors.
    Keywords: Agglomeration, Location Quotient, Renewable Energy, Community/Rural/Urban Development, Industrial Organization, Research and Development/Tech Change/Emerging Technologies,
    Date: 2012

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