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The Spirit Effect: Ultra-Low Cost Carriers and Fare Dispersion in the U.S. Airline Industry Rev. Ind. Organ. (IF 1.313) Pub Date : 2024-03-09 Brad Shrago
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Net Neutrality and Universal Service Obligations: It’s All About Bandwidth Rev. Ind. Organ. (IF 1.313) Pub Date : 2024-03-06 Axel Gautier, Jean-Christophe Poudou, Michel Roland
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Technology Licensing under Successive Monopoly Rev. Ind. Organ. (IF 1.313) Pub Date : 2024-03-05 Pei-Cyuan Shih, Tsung-Han Chou, Hong Hwang, Yan-Shu Lin
Assume that there is an outside innovator who owns a cost-reducing innovation and the market structure of the industry in question is that of successive monopoly. It is found that, an innovation that is aimed at an upstream firm will tend to be accompanied by a fixed fee license, while an innovation that is aimed at a downstream firm will tend to be accompanied by a per-unit royalty license. But the
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Competing to Sell the Reference Product Rev. Ind. Organ. (IF 1.313) Pub Date : 2024-03-02
Abstract In a sequential model of vertical product differentiation in which consumers are loss-averse, I analyse how firms compete to sell the reference product when they set prices. I find that there are two subgame perfect equilibria: one where the reference point for all consumers is the higher-quality product; and the other where the reference point is the lower-quality product. However, applying
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The Biases in Applying Static Demand Models Under Dynamic Demand Rev. Ind. Organ. (IF 1.313) Pub Date : 2024-02-29 Takeshi Fukasawa
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Horizontal Mergers and Supplier Power Rev. Ind. Organ. (IF 1.313) Pub Date : 2024-02-28 Joe Perkins, Shiva Shekhar
Supplier market power—such as the ability of branded goods suppliers to dictate terms to retailers—is an important feature of many markets. We show that supplier power can counteract the effects of downstream mergers on consumer prices where there are two-part contracts. This is because greater market power allows suppliers to set contracts that internalise partially the impact of the merger on downstream
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The Revenue Impact of Differential Seat Pricing and Competition in the Movie Theater Market Rev. Ind. Organ. (IF 1.313) Pub Date : 2024-02-22 Gihwan Yi, Min Kim, Hoe Sang Chung
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Dynamic Effects of Patent Pools: Evidence from Inter-Generational Competition in the Optical Disc Industry Rev. Ind. Organ. (IF 1.313) Pub Date : 2024-02-06
Abstract This study investigates the dynamic effects of patent pools in the optical disc (DVD) industry, while considering the inter-generational competition between standards. We examine their patent-pool effects on innovation in terms of patenting performance for the 2nd-generation (SG) standard (BD/HDDVD) as well as for the 1st-generation (FG) standard (DVD), with the use of firm-level panel data
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Unprofitable Cartels: Evidence from a Natural Experiment in the UK Rev. Ind. Organ. (IF 1.313) Pub Date : 2024-01-22 George Symeonidis
I analyse the effect of collusion on profitability with the use of evidence from a natural experiment of policy reform: the introduction of anti-cartel legislation in the UK in the late 1950s. This caused an intensification of price competition in previously collusive industries but did not affect industries that had not been collusive. Three main results are established: First, a comparison of the
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The Year in Review: Economics at the Antitrust Division, 2022–2023 Rev. Ind. Organ. (IF 1.313) Pub Date : 2024-01-20 Susan Athey, Mark Chicu, Malika Krishna, Ioana Marinescu
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Decentralization and Consumer Welfare with Substitutes or Complements Rev. Ind. Organ. (IF 1.313) Pub Date : 2024-01-15 Nicolas Pasquier
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R&D Concentration in Soybean and Cotton Markets Rev. Ind. Organ. (IF 1.313) Pub Date : 2024-01-14
Abstract Using data on field trial applications, we estimate the lower bounds to concentration in research and development (R&D) activity for genetically modified (GM) cotton and soybean seed markets in the U.S. We find that both crop types exhibit endogenous costs of entry, which implies that firms respond to increases in market size with escalations of R&D investment, so as to improve product quality
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Dynamic Competition, Price Frictions and Institution Building: the CMA in 2022–2023 Rev. Ind. Organ. (IF 1.313) Pub Date : 2024-01-13 Julie Bon, Alistair Love, Alan McNaboe, Nenad Njegovan, Jakob Schneebacher, Mike Walker
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Spatial Procurement of Farm Products and the Supply of Processed Foods: Application to the Tomato Processing Industry Rev. Ind. Organ. (IF 1.313) Pub Date : 2024-01-13 Stephen Hamilton, Scott Kjorlien, Ethan Ligon, Aric Shafran
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Recent Developments at DG Competition: 2022/2023 Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-12-21 Gabor Koltay, Rossitza Kotzeva, Gaëtan Lelièvre, Dimitrios Magos, Joanna Piechucka, Pierre Régibeau, Egle Skliaustyte
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Price Versus Market Share with Royalty Licensing: Incomplete Adoption of a Superior Technology with Heterogeneous Firms Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-12-19 Luca Sandrini
This article shows that the usual result of full adoption of a superior technology induced by pure royalty licensing may not hold when firms have different production technologies. By modeling a Cournot licensing game with an external innovator that offers per-unit royalty contracts to downstream firms, this article shows that full adoption of the innovation occurs only if (1) the new technology is
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Economics at the FCC 2022–2023: Satellite Marketplace, Broadband Data Collection, Drive Testing, the 988 Suicide & Crisis Lifeline, and Broadcast Station Ownership Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-12-19 Matthew Collins, Stacy Jordan, Wayne Leighton, Kim Makuch, Catherine Matraves, Daniel Shiman, Martha Stancill, Sean Sullivan, Patrick Sun
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How Does Downstream Firms’ Efficiency Affect Exclusive Supply Agreements? Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-11-30 Hiroshi Kitamura, Noriaki Matsushima, Misato Sato
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Economics at the FTC: Spatial Demand, Veterinary Hospital Mergers, Rulemaking, and Noncompete Agreements Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-11-23 Abigail Ferguson, Nellie Lew, Michael Lipsitz, Devesh Raval
The U.S. Federal Trade Commission enforces federal competition and consumer protection laws that prevent anticompetitive, deceptive, and unfair business practices, and works to advance government policies that protect consumers and promote competition. The FTC’s Bureau of Economics performs economic analysis to support both the enforcement and policy activities of the Commission. This article discusses
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Separating Vertical from Horizontal Differentiation Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-11-17 Ricardo D. Brito, Eduardo Correia de Souza, Rodrigo Moita
We demonstrate that R&D intensity is an appropriate measure of vertical differentiation, while the Rauch (J Int Econ 48:7–35, 1999) classification mainly captures horizontal differentiation. Product market characteristics vary considerably across R&D intensity-based “technology levels” of the OECD-STI taxonomy, as well as across categories of the Rauch classification. Both high technology and differentiated
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Local Competition, Multimarket Contact, and Product Quality: Evidence From Internet Service Provision Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-11-17 Kyle Wilson
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Public Communication as a Mechanism for Collusion in the Broiler Industry Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-11-11 Qiwen Sheng, Tomislav Vukina
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Introduction: The Industrial Organization of Food and Agriculture Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-11-05 James M. MacDonald
After a brief synopsis of the main avenues of research on the industrial organization of food and agriculture, I introduce and discuss the six articles that make up this Special Issue of the Review. The articles draw on novel databases to explore price transmission and supply response in processing tomatoes; concentration and competition in the meatpacking industries; communication and collusion in
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Product Market Cooperation, Foreign Direct Investment and Consumer Welfare Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-11-01 Arijit Mukherjee, Uday Bhanu Sinha
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Retail Markups and Discount-Store Entry Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-10-20 Lauren Chenarides, Miguel I. Gómez, Timothy J. Richards, Koichi Yonezawa
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Consolidation and Concentration in U.S. Meat Processing: Updated Measures Using Plant-Level Data Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-10-05 Tina L. Saitone, K. Aleks Schaefer, Daniel Scheitrum, Shawn Arita, Vince Breneman, Rebecca Nemec Boehm, Josh G. Maples
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How do Everyday-Low-Price Supermarkets Adjust Their Prices? Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-10-04 Guojun He, Jeffrey T. LaFrance, Jeffrey M. Perloff, Richard Volpe
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Food Origin Labeling and “Promoting Competition” Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-09-28 Jason Winfree
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Is Amnesty Plus More Successful in Fighting Multimarket Cartels? An Exploratory Analysis Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-09-12 Karine Brisset, Francois Cochard, Eve-Angeline Lambert
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Do Lower Search Costs Benefit Intermediaries? Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-09-12 Muxin Li
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Leniency Inflation, Cartel Damages, and Criminalization Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-09-13 Catarina Marvão, Giancarlo Spagnolo
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Leniency Policies and Cartel Success: An Experiment Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-09-05 Jeong Yeol Kim, Charles N. Noussair
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A Technology Licensing Model with Endogenous Timing Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-09-01 Hong-Ren Din, Chia-Hung Sun
Based on a licensing model where a licensor (an innovator) is itself a producer in the product market, this research investigates the endogenous timing of setting a quantity (price) under unit-royalty licensing, fixed-fee licensing, and two-part tariff licensing contracts. We demonstrate that the results of equilibrium timing depend on the various payment terms of a licensing contract as well as the
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Price-Directed Search, Product Differentiation and Competition Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-08-30 Martin Obradovits, Philipp Plaickner
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Corporate Leniency Programs for Antitrust: Past, Present, and Future Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-08-29 Jeroen Hinloopen, Sander Onderstal, Adriaan Soetevent
This special issue marks the 25th anniversary of the introduction of a leniency program for antitrust in the EU and contains five original papers: Each paper examines the effects of design parameters of leniency programs on their performance. Before introducing each contribution separately, we put them in perspective by introducing readers to the existing theoretical, empirical, and experimental literature
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Balancing Attraction and Risk Revelation: The Optimal Reservation Price in Peer-to-Peer Loan Auctions Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-08-28 Garrett T. Senney, Jonathan R. Lhost
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Cartel Leniency and Settlements: A Joint Perspective Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-08-18 Peter T. Dijkstra, Jacob Seifert
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Big Bids and Bidder Behavior in Uniform Price Auctions: Evidence from Peer-to-Peer Loan Markets Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-08-18 Garrett T. Senney, Jonathan R. Lhost
We investigate the effect of big bids on uniform price auctions with the use of data from peer-to-peer loan auctions. Following a big bid by a prospective lender, subsequent bidders are less likely to enter the auction, and those that do enter tend to bid higher interest rates. We show that bidders are not reacting to the identity of the big bidder—just to the bigness of the bid. Additionally, we find
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Innovation Diffusion and Strategic Outside Option in a Bargaining Game Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-08-16 Cecilia Vergari, Luigi Filippini
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Who Blows the Whistle on Cartels? Finding the Leniency Applicant at the European Commission Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-07-28 Juan Luis Jiménez, Manuel Ojeda-Cabral, José Manuel Ordóñez-de-Haro
Competition authorities need a better understanding of the determinants of cartel self-reporting in order to increase cartel members’ incentives to apply for the benefit from leniency programs and thus improve the effectiveness of anti-cartel policy. Using information on 683 firm groups that participated in 132 cartels that were penalized by the European Commission between 1996 and 2020, we estimate
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Integrating Norms, Knowledge, and Social Ties into the Deterrence Model of Cartels: A Survey Study of Business Executives Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-07-27 Loet van Stekelenburg, Peter T. Dijkstra, Elianne F. van Steenbergen, Jessanne Mastop, Naomi Ellemers
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Endogenous Entry and Growth of Firms with Heterogeneous Firms Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-07-13 Markus Thomas Münter
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Bertrand Duopoly in Online Consumer-to-Consumer Markets Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-07-10 Alexander Maslov
In this paper I examine price competition between two sellers who sequentially arrive at an online consumer-to-consumer market: e.g., Craigslist. Each seller has one unit of a homogeneous good that she wants to sell to a pool of buyers. When buyers arrive randomly at the market, I show that there is a unique equilibrium, in which sellers choose different prices and earn the same profit. When buyers’
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Protecting Small-Scale Enterprises: Evidence from the Korean Ready-Mixed Concrete Industry Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-07-05 Hyunbae Chun, Hailey Hayeon Joo, Jisoo Kang, Soo Hyung Kim
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Path Dependence as a Path to Consumer Surplus and Loyalty Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-07-02 Sherzod B. Akhundjanov, Ben O. Smith, Max St. Brown
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Public–Private Collusion Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-06-21 Filipa Mota, João Correia-da-Silva, Joana Pinho
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Product-Line Decisions and Rapid Turnover in Movie Markets Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-05-16 Yu-Hsi Liu, Darlene C. Chisholm, George Norman
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The Timing of Technology Adoption in Network Industries Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-05-13 Leonard F. S. Wang, Domenico Buccella
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Slot Divestitures and Price Competition at Reagan National and LaGuardia Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-04-08 Huubinh B. Le, Jules O. Yimga
The American Airlines/US Airways merger was initially challenged by US antitrust authorities partly because of the airlines’ significant takeoff/landing slot concentration and direct (overlap) competition at slot-controlled airports, Reagan National and LaGuardia. The approval of their merger required that they divest slots to other carriers. This paper examines whether these divestitures have preserved
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Competition and Specialization in the VC Market: A Non-monotonic Relationship Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-02-20 Christos Cabolis, Mian Dai, Konstantinos Serfes
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Uncertainty of Outcome Hypothesis: Theoretical Development and Empirical Evaluation Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-02-16 Hayley Jang, Doyoung Kim, Young Hoon Lee
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Pricing Strategies and Partial Privatization Policy Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-02-13 Akio Kawasaki
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Simulating Vertical Mergers Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-02-13 Gleb B. Domnenko, David S. Sibley
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Price Competition in a Vertizontally Differentiated Duopoly Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-02-03 Iwan Bos, Ronald Peeters
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Before Privatization There was Its Impact: Sugar Factories in Turkey Rev. Ind. Organ. (IF 1.313) Pub Date : 2023-01-24 Alper Demirdogen
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Hybrid Marketplaces with Free Entry of Sellers Rev. Ind. Organ. (IF 1.313) Pub Date : 2022-12-29 Federico Etro
We study a hybrid marketplace such as Amazon that sells its own products and sets commissions on third-party sellers that engage in monopolistic competition with free entry. For a large class of microfoundations based on a representative agent, the introduction of its own products by the marketplace is neutral for consumer welfare for a given commission; but this product introduction exerts an ambiguous
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When Do Firms Offer Higher Product Quality? Evidence from the Allocation of Inflight Amenities Rev. Ind. Organ. (IF 1.313) Pub Date : 2022-12-15 Myongjin Kim, Qihong Liu, Nicholas G. Rupp
We examine how competition impacts the provision of product quality. Using a unique data set of inflight amenities provided by U.S. airlines, we find that the composition of competition matters. There is significantly higher product quality - Wi-Fi, entertainment, and at-the-seat electrical power outlets - on on more competitive routes (with lower HHI). The presence of Southwest Airlines on the route
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Research Diversity and Invention Rev. Ind. Organ. (IF 1.313) Pub Date : 2022-12-07 John T. Scott
This paper explains that when there is great uncertainty about which elements of knowledge must be combined to make an invention, the likelihood of invention increases markedly—by many orders of magnitude—when there are numerous diverse research organizations, rather than just a few. The paper examines the possibility that competition (antitrust) policy toward mergers would be improved if enforcement
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Recent Developments at DG Competition: 2021/2022 Rev. Ind. Organ. (IF 1.313) Pub Date : 2022-11-30 Thomas Buettner, Daniel Coublucq, Rossitza Kotzeva, Lluis Sauri-Romero, Pierre Régibeau
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Patent Licensing and Capacity in a Cournot Model Rev. Ind. Organ. (IF 1.313) Pub Date : 2022-11-17 Stefano Colombo, Luigi Filippini, Debapriya Sen