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on Industrial Organization |
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Issue of 2022‒08‒08
three papers chosen by |
| By: | Patrick Rey; Yossi Spiegel; Konrad O. Stahl |
| Abstract: | We study the feasibility and profitability of predation in a parsimonious infinite-horizon, complete information setting where an incumbent may face an entrant, in which case it needs to decide whether to accommodate or predate it. If the entrant exits, a new entrant is born with positive probability. We show that there always exists a Markov perfect equilibrium, which can be of three types: accommodation, predation with no future entry, and predation with hit-and-run entry. We use the model to study alternative antitrust policies, derive the best rules for these policies, and compare their welfare effects. |
| Keywords: | predation, accommodation, entry, legal rules, Markov perfect equilibrium |
| JEL: | D43 L41 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9819&r= |
| By: | Philipp Brunner; Igor Letina; Armin Schmutzler |
| Abstract: | This paper provides a novel theory of research joint ventures for financially constrained firms. When firms choose R&D portfolios, an RJV can help to coordinate research efforts, reducing investments in duplicate projects. This can free up resources, increase the variety of pursued projects and thereby increase the probability of discovering the innovation. RJVs improve innovation outcomes when market competition is weak and external financing conditions are bad. An RJV may increase the innovation probability and nevertheless lower total R&D costs. RJVs that increase innovation tend to be profitable, but innovation-reducing RJVs also exist. Finally, we compare RJVs to innovation-enhancing mergers. |
| Keywords: | Innovation, research joint ventures, financial constraints, mergers, intensity of competition, licensing |
| JEL: | L13 L24 O31 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:zur:econwp:416&r= |
| By: | Laurent Daniel; Takuya Adachi; Sunhye Lee |
| Abstract: | The latest OECD analysis of demand and supply in the shipbuilding industry finds significant excess capacity in the sector. Reducing this excess capacity will depend on the willingness and ability of yards to reduce existing capacity and to refrain from new capital investments. The report also presents a literature review of factors that influence newbuilding ship prices, developments affecting ship prices, and a description of newbuilding prices of major ship types and ship size categories. This report is part of a regular monitoring exercise from the OECD Council Working Party on shipbuilding (WP6) of the global shipbuilding market. |
| Keywords: | Cost, Demand, Price, Shipbuilding, Supply |
| Date: | 2022–07–07 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaac:132-en&r= |