scholarly journals Free Riding in Noncooperative Entry Deterrence with Differentiated Products

2005 ◽  
Vol 72 (1) ◽  
pp. 119 ◽  
Author(s):  
Dan Kovenock ◽  
Suddhasatwa Roy
Keyword(s):  
Free Riding ◽  
Entry Deterrence ◽  
Differentiated Products

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.

scholarly journals Capacity Competition in Differentiated Oligopolies: Entry Deterrence with Alternative Objective Functions

2021 ◽  
Vol 16 (1) ◽  
pp. 84-92
Author(s):  
Bojan Ristić ◽  
Dejan Trifunović ◽  
Tomislav Herceg
Keyword(s):  
Weighted Average ◽  
Entry Deterrence ◽  
Differentiated Products ◽  
Objective Functions ◽  
Best Response ◽  
First Mover Advantage ◽  
Choice Variable ◽  
Intensity Of Competition ◽  
Rational Players ◽  
Practical Recommendations

Abstract This paper aims to identify the possible implications of quantity competition in markets with differentiated products on entry deterrence. If capacity commitments characterise this industry, quantities can be expected as the choice variable of rational players, even in the presence of product differentiation. Different equilibria of a static game occur depending on the degree of asymmetry of players, incumbent and entrant, which will crucially affect the shape of their best response functions. Asymmetry can stem from players’ advantage in demand and costs, their different objective functions, or the first-mover advantage. We will analyse entry where incumbent maximises the weighted average of profit and revenue while entrant is maximising profit. The reduction of asymmetry may intensify competition in the industry and, consequently, reduce entry barriers. Our findings provide an insight that could be used for practical recommendations for conducting competition policy and other sector-specific regulations, where the introduction and higher intensity of competition are desirable.

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

The Role of Non-Coordinated Effects in the Assessment of Minority Shareholdings

2016 ◽  
Vol 14 (3) ◽  
Author(s):  
Frank Maier-Rigaud ◽  
Ulrich Schwalbe ◽  
Felix Forster
Keyword(s):  
Differentiated Products ◽  
Effective Competition ◽  
Oligopolistic Markets ◽  
Minority Shareholdings ◽  
Coordinated Effects

AbstractThis article focusses on the non-coordinated effects of minority shareholdings in oligopolistic markets. It is demonstrated that minority shareholdings even when they fall below the usual thresholds can lead to a significant impediment of effective competition (SIEC) on a purely non-coordinated basis. This is particularly likely in a market with differentiated products, when a firm partially acquires shareholdings in its closest competitor and when the next best alternative products are only weak substitutes.

The Organization and Development of Library Marketing Service

2010 ◽  
pp. 30-36
Author(s):  
Yulia V. Meshalkina
Keyword(s):  
Social Communication ◽  
Differentiated Products ◽  
Main Factors ◽  
Marketing Service ◽  
Library Marketing ◽  
Monitoring Information ◽  
Modern Russian

The article deals with the problem of marketing use in the practice of modern Russian libraries. The main factors responsible for the relevance of putting marketing instruments into library practice are defined. The model of a centralized marketing service of Moscow libraries, which provides monitoring information, social communication and leisure needs of the Muscovites, the development of differentiated products and services of library activities, advertising and promoting them to the user is represented in the article.

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