Refusals to deal and orders to supply in competitive markets
Article Abstract:
Several antitrust cases in North America and Europe have arisen regarding claims that manufacturers of durable products have declined to supply parts to independent service firms to monopolize the market for repairs of their products. Such refusals in a competitive market was examined and related to the aftermarket. Since full prices equal full marginal costs in equilibrium, the refusals allowed the accomplishment of a first-best outcome and an attempt by the government to force supply will decrease welfare.
Publication Name: International Journal of Industrial Organization
Subject: Business, international
ISSN: 0167-7187
Year: 1999
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Strategic debt: evidence in manufacturing
Article Abstract:
A study was conducted which demonstrates that companies consider the influence of debt on the product market and also tend to compete in prices instead of output. Using data from manufacturing companies operating for at least 11 years for the period 1975-1994, price competition and the employment of strategic debt was found to be evident. Companies hold more debt as demand uncertainty increases and apply less leverage as costs become less certain.
Publication Name: International Journal of Industrial Organization
Subject: Business, international
ISSN: 0167-7187
Year: 1999
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Cooperating upstream while competing downstream: a theory of input joint ventures
Article Abstract:
Research focuses on a joint venture in which two companies share ownership of a facility that produces something. Considering this joint venture, research studies the pricing strategy used and the impact of this strategy on downstream competition.
Publication Name: International Journal of Industrial Organization
Subject: Business, international
ISSN: 0167-7187
Year: 2003
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