Showing papers in "International Journal of Industrial Organization in 2002"

TL;DR: This paper examined the link between liquidity constraints and investment behavior for German firms of different sizes from 1970 to 1986 and found that medium sized firms appear to be more liquidity constrained in their investment behavior than either the smallest or largest firms in the study.

TL;DR: In this paper, the authors investigate whether more competition in the banking industry necessarily results in a higher probability of banking failures, as it is often suggested, and they show that investment decreases with the lending rate and increases with monitoring effort.

TL;DR: In this paper, the authors developed and tested a method for a quick and easy calculation of consumer switching costs among brands in a given industry, and demonstrated how users' switching costs can be directly calculated in two different industries: (a) the Israeli cellular phone market, and (b) the Finnish market for bank deposits.

TL;DR: In this article, game-theoretic models that describe the effects of spillovers, market size, research productivity and the generality of a firms' research approach on innovation efforts and on their propensity to form a research joint venture are empirically tested using innovation survey data of the German service sector.

TL;DR: In this paper, game-theoretic models that describe the effects of spillovers, market size, research productivity and the generality of a firms' research approach on innovation efforts and on their propensity to form a research joint venture are empirically tested using innovation survey data of the German service sector.

TL;DR: In this paper, the authors compare the properties of the standard cross sectional test of the Law of proportionate effect (LPE) with those of three alternative panel unit root tests, using Monte Carlo methods.

TL;DR: In this article, the authors used a data set of U.S. electric utilities that differ widely in their degree of vertical integration in order to model, estimate, and measure such economies, finding that cost savings from vertical integration are quite substantial for all but the smallest utilities and are largest for those that are nearly fully integrated.

TL;DR: In this paper, the authors examined the relationship between the replacement of CEO's and corporate performance in Danish firms and found that CEO turnover is inversely related to firm performance, which is consistent with the principal-agent theory.

TL;DR: In this article, the issue of whether firms use price or advertising to signal quality and whether advertising has pro- or anti-competitive effects is addressed, in contrast to single-firm models.

TL;DR: In this article, the authors extend the literature on cooperative R&D in an oligopoly with spillovers and propose a new definition of the research joint venture (RJV), which is an arrangement to coordinate efforts and also to share the innovation.

TL;DR: In this article, the effect of regulation as distinct from ownership on the efficiency of Spanish electricity generators has been investigated, and two different regulatory schemes have been applied to both publicly and privately owned Spanish generators, and the results show that public-owned generators were more efficient under cost of service regulation; private firms responded to incentive regulation by increasing efficiency.

TL;DR: In this article, a model of a leading technological firm facing a competitive fringe is presented, where the leading firm considers three types of investments: investments in applied research, investments in basic research, and investments in intellectual property protection.

TL;DR: This article found that price-cost differentials cannot be explained by cost differences, making this an example of quality discrimination; market introduction time strongly affects sales, suggesting that time is the crucial dimension of discrimination; and there is substantial price rigidity across books and over time.

TL;DR: In this paper, a time-series study of the profit rates of Japanese manufacturing firms was conducted and the authors concluded that profits persist and the force of convergence was also at work; for instance, the firms most profitable in Period 1 (1964-82) were most likely to face a decline in estimated long run profit rates from Period 1 to Period 2 (1983-97).

TL;DR: In this paper, the determinants of the ownership preferences of manufacturing multinational firms established in Greece and Portugal in the 1990s are examined, and differences between the two countries in terms of relative FDI size, industry and ownership choices are observed.

TL;DR: In this paper, the authors provide a framework that accommodates a wide range of alternative assumptions regarding the nature of competition and types of uncertainty, and show how risk aversion influences firms' best-response strategies.

TL;DR: In this paper, the authors examined patterns of integration among manufacturers and retailers, using data from a survey of footwear manufacturers in Mexico, and showed that the costs of integration are highest where the retailer's non-contractible investment has an important effect on the overall profits from the relationship.

TL;DR: In this paper, the authors present an experimental test of the multi-stage patent race model of Harris and Vickers (Rev. Econ. Stud. 54 (1987) 1).

TL;DR: In this paper, the authors show that if the proportion of informed consumers is low, quality is signaled only through a high price and if this proportion is intermediate, quality can be signaled by both advertising and price.

TL;DR: The authors analyzes spatial Cournot competition among multi-store firms and demonstrates that the complex problem of determining equilibrium store locations for competing multi-stores firms can be approximated by a simple one, in which each firm behaves as a multi-Store monopolist in choosing its store locations.

TL;DR: In this article, the authors provide sufficient conditions under which the negotiated wage in unionized imperfectly competitive industries is independent of a number of product market features, as well as of the bargaining institution (right-to-manage or efficient Bargains), as long as negotiations are centralised at the industry level.

TL;DR: In this article, the authors examine how universal service provisions and price restrictions across markets impact strategic entry and pricing, and develop a simple multi-market model with an oligopolistic (profitable) urban market and entry auctions for (unprofitable), rural service.

TL;DR: In this paper, the authors show that in the oligopolistic industry model of Dixit and Pindyck [Investment under Uncertainty, 1994] this is never the case.

TL;DR: In this paper, the authors examine, in a network market open to competition, various mechanisms for allocating and funding universal service obligations among agents (rival firms and consumers) and show that pay-or-play regulation always dominates restricted-entry regulation under ubiquity constraint alone.

TL;DR: In this paper, the authors investigate the interplay between firms' decisions in product development, either joint or independent, and their ensuing repeated pricing, either collusive or Bertrand-Nash, and prove that joint product development and the resulting lack of horizontal product differentiation may destabilise collusion, whilst firms' R&D decisions have no bearings on collusive sustainability if differentiation is vertical.

TL;DR: This article investigated the determinants of takeovers in a large sample of UK quoted companies and found no evidence that firms without apparent profitable investment opportunities are more likely to be taken over if managers increase investment or reduce dividends.

TL;DR: In this paper, the authors argue that domestic airline mergers increase international efficiency via the enhancement of domestic networks and the elimination of domestic competition, which correspondingly leads to an improved international competitive position.

TL;DR: In this paper, the authors examined the duration dependence and determinants of post-deregulation plant lifetimes and found that plant size, age, regulatory subsidies, technology use, and multi-plant coordination are key determinants for refinery life duration after deregulation.

TL;DR: By analyzing the response of the estimated private price to exogenous differences in Medicare, Medicaid and charity caseload, the hypothesis that not-for-profit hospitals maximize profits is rejected and pure welfare (output) maximization is rejected.

TL;DR: In this article, the authors investigate simultaneous and sequential price competition in duoply markets with differentiated products and random matching of symmetric firms and find that second movers gain from the sequential structure in comparison to simultaneous-move markets whereas first movers do not.