Showing papers in "International Journal of Industrial Organization in 2005"

TL;DR: In this article, the authors analyze which firm and industry characteristics are conducive to cooperation with universities and examine the theoretically conflicting effect of the appropriation conditions on the likelihood of cooperating with universities, finding that these cooperative agreements are formed whenever risk is not an important obstacle to innovation and typically serve to share costs.

TL;DR: This article examined the complementarity between employees' skills and firms' innovation activities and found that high technical skills are complementary with R&D collaboration and product or process innovation, and that investments in skills help expand the group of firms in the economy that have the potential to innovate successfully.

TL;DR: In this paper, the authors compare several alternative market power tests: a hypothetical market power test, an actual market power testing, and a comparative market test in the context of European mergers, and emphasize the importance of constructing confidence intervals when computing the predicted merger effects.

TL;DR: This article analyzed the evolution of four new products that experienced an initial rise and then extreme shakeout in their number of manufacturers: automobiles, tires, televisions, and penicillin.

TL;DR: In this paper, the authors analyze the time-series of prices in the Spanish electricity market by means of a time varying-transition-probability Markov-switching model.

TL;DR: In this paper, the authors explore whether or not patterns of entry and exit are systematically related to productivity differences at the firm level, as suggested by models of industry dynamics Hopenhayn (1992) and Hugo, 1992 Entry, exit, and firm dynamics in long run equilibrium Econometrica, 60, 1127-1150 (September).

TL;DR: In this paper, the authors consider the political economy environment that an antitrust agency is operating in and ask under what circumstances a consumer surplus standard yields higher welfare than a welfare standard, when lobbying is efficient, accountability is low, where mergers are large and when a marginal increase in merger size is highly profitable.

TL;DR: In this article, the authors modify the paper of Stahl (1989) by relaxing the assumption that consumers obtain the first price quotation for free, and show that monopoly pricing never obtains with truly costly search.

TL;DR: In this article, the authors investigate the determinants of firms decisions to engage into the respective cooperation modes and find that firms perceive informal cooperation as being more important than formal cooperation modes.

TL;DR: In this paper, the authors derive conditions under which reputation enables certifiers to resist capture and show that honest certification requires high prices that may even exceed the static monopoly price, and thus constitutes a natural monopoly.

TL;DR: In this article, an alternative approach is taken whereby the intra-firm diffusion of new process technologies reflects the profitability of new technology adoption as proxied by firm characteristics, which is tested using data relating to the diffusion of Computer Numerically Controlled Machine tools within firms in the UK engineering and metalworking sectors.

TL;DR: In this article, the authors analyse the decision process of the European Commission and find that the probability of a phase-2 investigation and of a prohibition of the merger increases with the parties' market shares.

TL;DR: In this paper, the authors extend the standard Dixit-Stiglitz model of imperfect competition to allow for multiproduct firms, fully endogenising market structure by determining both the number of varieties per firm and the total number of firms in the industry.

TL;DR: In this article, the authors developed a simple rule for the computation of airport congestion tolls, reflecting the internalization of congestion, which shows that the toll paid by a carrier should equal the congestion damage from an extra flight times one minus the carrier's airport flight share.

TL;DR: In this paper, the authors give an overview of firm size distributions that result as steady states from models differing in the way these firm dynamics are modelled, and analyse to which extent the steady-state approach is able to explain the shape of firms' size distributions in practice.

TL;DR: The authors examined the role of intermediaries between creators and users of new inventions and found that uncertainty about the profitability of investing in new inventions generates a basis for intermediation, which may explain the surge in university patenting and licensing since the Bayh-Dole Act of 1980.

TL;DR: In this article, the authors model a sequential merger formation game with endogenous efficiency gains in which every merger has to be submitted for approval to the Antitrust Authority (AA), and two different types of AA are studied: first, a myopic AA, which judges a given merger without considering that subsequent mergers may occur; and, second, a forward looking AA which anticipates the ultimate market structure a given merge will lead to.

TL;DR: In this article, an optimal enforcement rule combines evidence with theory to update prior beliefs, and specifies a decision that minimizes the expected loss, which should be guided by empirical evidence.

TL;DR: In this paper, the authors quantify the nature of prior plant and firm experience for entrants into a market and measure its effect on the subsequent decision to exit the market using plant-level data for seven regional manufacturing industries in the U.S. They find that a producer's experience at the time it enters a market plays an important role in the exit decision, affecting both the overall probability of exit and the method of exit.

TL;DR: In this article, the relation between technological spillovers and R&D cooperation in a duopoly experiment based on the well-known model of d'Aspremont and Jacquemin was analyzed.

TL;DR: In this article, the authors analyzed a unique set of firm-level data on nearly 400 beer distributors in the United States and found that exclusive dealing serves to minimize manufacturer-dealer incentive conflicts and enhances social welfare.

TL;DR: In this article, the authors explore the endogenous determination of R&D appropriability through the firms' choice of research approaches and show that competing firms choose identical R&DM approaches in order to maximize knowledge flows between each other.

TL;DR: In this article, the analysis of games with strategic complementarities and applications to industrial organization is presented, including oligopoly pricing, comparative statics and a taxonomy of strategic behavior in two-stage games.

TL;DR: In this article, the authors explore the competitive implications of third-degree price discrimination based on consumer information of varying degrees of "precision" in a vertical differentiation duopoly model and show that social and consumer welfare are monotonically increasing with respect to the precision of consumer information.

TL;DR: In this paper, the authors developed a model in which two firms that have proposed to merge are privately informed about merger-specific efficiencies, which enables the firms to influence the merger control procedure by strategically revealing their information to an antitrust authority.

TL;DR: In this paper, the authors introduce the concepts of cooperative substitutes and complements, and use them to explain when all firms in a research joint venture will choose equal levels of R&D, and show that the second-order conditions for a symmetric optimum take a particularly simple form, ruling out both excessive cooperative substitutability and excessive cooperative complementarity.

TL;DR: In this article, the authors investigate the relationship between the price effects of mergers absent synergies and the rates at which merger synergies are passed through to consumers in the form of lower prices.

TL;DR: In this paper, the authors show that if the firm is to break even under incentive regulation, then the level of the rate base will exceed the optimized replacement cost by an amount which they interpret as the value of the excess capacity of the firm's assets.

TL;DR: In this paper, the authors consider sequential construction contracts in which bidders may benefit from one auction to the next due to synergistic tasks across the projects auctioned and present evidence in support of these predictions using sequential construction auctions conducted by the Oklahoma Department of Transportation.

TL;DR: In this article, the authors construct a model of endogenous mergers and study some issues of whether and how to control mergers, taking into account firms equilibrium response to policy, and show how such free-riding reduces firms incentives to merge.