scholarly journals Entry Deterrence and Free Riding in License Auctions: Incumbent Heterogeneity and Monotonicity

2021 ◽  
Author(s):  
Biung-Ghi Ju ◽  
Seung Han Yoo
Keyword(s):  
Free Riding ◽  
Entry Deterrence ◽  
License Auctions

scholarly journals Entry Deterrence and Free Riding in License Auctions: Incumbent Heterogeneity and Monotonicity

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Biung-Ghi Ju ◽  
Seung Han Yoo
Keyword(s):  
Loss Rate ◽  
Free Riding ◽  
Entry Deterrence ◽  
Market Shares ◽  
License Auctions ◽  
Loss Rates

Abstract We examine free riding for entry deterrence in license auctions with heterogeneous incumbents. We establish the monotonicity of randomized preemptive bidding equilibria: an incumbent with a higher entry-loss rate has greater free-riding incentive, choosing a lower deterring probability. We then identify conditions for the existence of a series of fully or partially participating equilibria such that two or more incumbents with bounded heterogeneity in their entry-loss rates participate in randomized preemptive bidding. As an application, we examine a simple case of a bipartite group of participating incumbents consisting of one “leader” and many “followers”. We show that the policy of limiting the leader’s participation (set-asides for entrants, limiting participation of incumbents with excessive market shares, etc.) may or may not increase entry probability.

Free Riding and Altruism in Vaccination Decisions

2007 ◽  
Author(s):  
Meng Li ◽  
Jeffrey Vietri ◽  
Gretchen B. Chapman ◽  
Alison Galvani ◽  
David Thomas
Keyword(s):  
Free Riding

Free-Riding Bohemians for Creative City Futures: Solution or Delusion?

2011 ◽  
Author(s):  
Simon Hugh Huston ◽  
David Wadley ◽  
Peter Elliott
Keyword(s):  
Free Riding ◽  
Creative City
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