scholarly journals Evaluating Appropriability Defenses for the Exclusionary Conduct of Dominant Firms in Innovative Industries

2014 ◽  
Author(s):  
Jonathan B. Baker
Keyword(s):  
Dominant Firms ◽  
Innovative Industries

Technological Change and the Theory of the Firm: The American Locomotive Industry, 1920–1955

1976 ◽  
Vol 50 (1) ◽  
pp. 1-24 ◽  
Author(s):  
Thomas G. Marx
Keyword(s):  
Technological Change ◽  
Theory Of The Firm ◽  
Managerial Behavior ◽  
Dominant Firms

This study analyzes the differing managerial behavior of the three dominant firms in the steam locomotive oligopoly as diesel locomotives replaced steam.

scholarly journals The Welfare Effects of Use-or-Lose Provisions in Markets with Dominant Firms

2013 ◽  
Vol 5 (1) ◽  
pp. 175-193 ◽  
Author(s):  
Ian Gale ◽  
Daniel P O'Brien
Keyword(s):  
Wireless Communications ◽  
Welfare Effects ◽  
Productive Capacity ◽  
Dominant Firm ◽  
Aggregate Output ◽  
Stated Objective ◽  
Total Surplus ◽  
Dominant Firms ◽  
Limit Capacity

A use-or-lose provision requires that firms employ a certain minimum fraction of their productive capacity. Variants have been used by regulators in the airline and wireless communications industries, among others. A typical stated objective is to limit capacity hoarding, thereby increasing aggregate output and welfare. When the dominant firm is more efficient than fringe firms, we find that imposing a use-or-lose provision induces the dominant firm to acquire capacity from the fringe, which causes aggregate output to fall. When the dominant firm is less efficient than the fringe, aggregate output rises. In both cases, total surplus may rise or fall. (JEL D43, K21, L13, L93)

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