Showing papers in "International Journal of Industrial Organization in 2006"

TL;DR: In this paper, the authors present and estimate a model of competition in a two-sided market: the market for magazine readership and advertising, and they find evidence that magazines have properties of twosided markets, consistent with the perception that prices for readers are "subsidized" and that magazines make all their money from advertisers.

TL;DR: In this article, the relative shadow value of R&D in France and Germany is remarkably similar both to each other and to that in the US or the UK during the same period.

TL;DR: In this article, the authors add large sample evidence on the extent to which the likelihood of business failure or success is related to relationships between parent firms and their "off-spring" and estimate a multinomial logit model in order to examine which characteristics of the founders and the parent firms increase the probability of spinning off.

TL;DR: In this article, the authors compare the impact of reduced fines and positive rewards and argue that rewarding individuals, including firm employees, can deter collusion in a more effective way, and explore explanations for the puzzling fact that managers keep incriminating evidence and argue reward programs actually provide additional incentives for keeping such evidence.

TL;DR: In this article, the authors show that consumers are willing to pay more because the match between product characteristics and buyers' tastes is improved, and that this holds under sufficient taste heterogeneity and product diversity.

TL;DR: In this paper, the authors study capture and extortion in public purchase and show that capture yields a deadweight loss while extortion does not, and that when susceptibility to corruption rises, there is a shift from the capture to the extortion regime.

TL;DR: In this paper, the effect of foreign ownership on productivity in a very general setting where all potential endogeneity sources are controlled for was investigated and it was shown that, after controlling for unobserved heterogeneity, input simultaneity and measurement errors, foreign ownership has no effect on productivity.

TL;DR: In this paper, the authors estimate the switching costs and consumers' valuation of the number portability service in the Korean mobile communications market using conjoint analysis and the stated preference approach.

TL;DR: In this article, the authors investigated the value-added contributions of science parks to new technology-based firms (NTBFs), focusing on whether on-park NTBFs are likely to establish knowledge linkage, represented as joint research, with local higher education institutes (HEIs).

TL;DR: In this article, the authors examined price movements over time around the collapse of a bid-rigging conspiracy and found that while the mean decreased by sixteen percent, the standard deviation increased by over two hundred percent.

TL;DR: In this paper, the authors investigated the incidence of national and cross-border mergers and acquisitions and found that only domestic operations seem to have stimulated RD domestic M&A diminished R&D investment across OECD nations in medium-technology intensive industries.

TL;DR: In this article, the authors consider a model with a vertically integrated monopolist network provider who faces rival operators in the retail market, and examine the network operator's incentives for infrastructure investment.

TL;DR: In this paper, the authors examined the investment-cash flow sensitivity of publicly listed firms in The Netherlands and found that firms with higher bank debt have higher investment sensitivity, and that leverage is a key disciplinary mechanism which reduces the managerial discretion problem.

TL;DR: In this article, the authors present empirical evidence that endogenous fixed costs play a central role in determining the equilibrium structure of the retail food industry, and they construct a structural prediction for the limiting number of supermarket firms and identify the quality escalation mechanism that sustains this oligopoly.

TL;DR: In this paper, the authors find that multihoming may be a poor substitute for compatibility and that the lack of compatibility may increase the social desirability of compatibility, while making compatibility less attractive for firms.

TL;DR: In this paper, a new empirical approach was proposed to assess the impact of knowledge spillovers on firms' productivity and demand, where process innovation spillovers to other firms raise firms' relative efficiency while technological diffusion of product innovations enhances firms' demand.

TL;DR: In this paper, a meta-regression analysis of the size of cartel overcharges from a sample of more than 800 observations collected from a wide variety of published sources is presented, showing that duration, legal environment, and organizational characteristics of cartels explain variation in overcharge rates to a greater extent than the type of publication or the method of calculation.

TL;DR: In this paper, the authors investigate the relationship between strategic alliances in a model where each alliance member maximizes its own profit and some share of its partner's profit, and a complementary alliance confers a strategic advantage by allowing the partners to credibly commit to greater output.

TL;DR: In this article, the effect of access charges on firms' incentives to invest in a network facility with a stochastically growing demand is examined, and an access-to-bypass equilibrium is characterized in terms of an access charge and a level of network investment cost.

TL;DR: This paper found that smokers are more impatient than nonsmokers and are more pessimistic about future macroeconomic events, which may reinforce their present orientation, and risk tolerance is not caused by smoking, but represents innate characteristics.

TL;DR: In this paper, the authors characterize collusive pricing patterns when buyers may detect the presence of a cartel and find that the cartel price path is comprised of two phases, namely the transitional phase and the stationary phase.

TL;DR: This paper showed that multi-product firms can compete for their more profitable customers by setting lower margins on goods that are purchased primarily by them, effectively offering them discounts without offering these discounts to less profitable customers.

TL;DR: In this article, the authors investigated the effect of capacity constraints on collusion in markets subject to cyclical demand infuctuations, and showed that collusion is more prevalent during periods of decreasing demand than periods of increasing demand.

TL;DR: In this paper, a comparison of paired observations of advertised prices that are set by competing firms at the same point in time on similar items, where one price is set by a firm that has a low-price guarantee and the other by another firm that does not have a low price guarantee, is presented.

TL;DR: In this paper, a mixed oligopoly game of this type was introduced and its equilibria were determined. And the emergence of the Cournot game was also proved in this model.

TL;DR: In this paper, the authors show that convex transport and production costs always entail excessive entry as long as a price equilibrium exists, and they also provide an example of insufficient entry in equilibrium.

TL;DR: In this paper, the authors compare the experience with collusion in the market for lysine with the predictions of theory and find that several integral aspects of collusion are not adequately addressed in the literature: the dynamics associated with entry and investment, persistent asymmetries between firms, the cartel's bargaining problem, and the existence of cheating in equilibrium.

TL;DR: In this article, rival firms' incentives in quality-improving Research and Development (R&D) networks were studied and the role of free riding associated to collaboration was highlighted.

TL;DR: The game-theoretic equilibria characterized in this paper shed light on why players such as firms and nations sometimes strategically link fronts in their rivalry, and sometimes take care to articulate that some fronts of particularly volatile conflicting interests will not trigger broader adverse moves against the rival.

TL;DR: In this article, a model of individual learning about the risks of smoking through information revealed in the form of health shocks to self and spouse is proposed. But the model is limited to the case of single individuals.