Anticompetitive vertical mergers waves

This paper develops an equilibrium model of vertical mergers. We show that competition on an upstream market between integrated firms only is less intense than in the presence of unintegrated upstream firms. Indeed, when an integrated firm supplies the upstream market, it becomes a soft downstream competitor to preserve its upstream profits. This benefits other integrated firms, which may therefore choose not to cut prices on the upstream market. This mechanism generates waves of vertical mergers in which every upstream firm integrates with a downstream firm, and the remaining unintegrated downstream firms obtain the input at a high upstream price. We show that these anticompetitive vertical mergers waves are more likely when downstream competition is fiercer.

Upstream Competition between Vertically Integrated Firms

We propose a model of two-tier competition between vertically integrated firms and unintegrated downstream firms. We show that, even when integrated firms compete in prices to offer a homogeneous input, the Bertrand result may not obtain, and the input may be priced above marginal cost in equilibrium, which is detrimental to consumers' surplus and social welfare. We obtain that these partial foreclosure equilibria are more likely to exist when downstream competition is fierce. We then use our model to assess the impact of several regulatory tools in the telecommunications industry.Vertical foreclosure, vertically-related markets, telecommunications.

Anticompetitive vertical mergers waves

This paper develops an equilibrium model of vertical mergers. We show that competition on an upstream market between integrated firms only is less intense than in the presence of unintegrated upstream firms. Indeed, when an integrated firm supplies the upstream market, it becomes a soft downstream competitor to preserve its upstream profits. This benefits other integrated firms, which may therefore choose not to cut prices on the upstream market. This mechanism generates waves of vertical mergers in which every upstream firm integrates with a downstream firm, and the remaining unintegrated downstream firms obtain the input at a high upstream price. We show that these anticompetitive vertical mergers waves are more likely when downstream competition is fiercer

Trading and Liquidity with Limited Cognition

We study the reaction of financial markets to aggregate liquidity shocks when traders face cognition limits. While each financial institution recovers from the shock at a random time, the trader representing the institution observes this recovery with a delay, reecting the time it takes to collect and process information about positions, counterparties and risk exposure. Cognition limits lengthen the recovery process. They also imply that traders who find their institution has not yet recovered from the shock place market sell orders, and then progressively buy back at relatively low prices, while simultaneously placing limit orders to sell later when the price will have recovered. This generates round trip trades, which raise trading volume. We compare the case where algorithms enable traders to implement this strategy to that where traders can only place orders when they have completed their information processing task

Trading and Liquidity with Limited Cognition

We study the reaction of financial markets to aggregate liquidity shocks when traders face cognition limits. While each financial institution recovers from the shock at a random time, the trader representing the institution observes this recovery with a delay, reecting the time it takes to collect and process information about positions, counterparties and risk exposure. Cognition limits lengthen the recovery process. They also imply that traders who find their institution has not yet recovered from the shock place market sell orders, and then progressively buy back at relatively low prices, while simultaneously placing limit orders to sell later when the price will have recovered. This generates round trip trades, which raise trading volume. We compare the case where algorithms enable traders to implement this strategy to that where traders can only place orders when they have completed their information processing task

The Perception of Contour Tones

Proceedings of the First Annual Meeting of the Berkeley Linguistics Society (1975), pp. 221-23

Trading and Liquidity with Limited Cognition

We study the reaction of financial markets to aggregate liquidity shocks when traders face cognition limits. While each financial institution recovers from the shock at a random time, the trader representing the institution observes this recovery with a delay reflecting the time it takes to collect and process information about positions, counterparties and risk exposure. Cognition limits lengthen the market price recovery. They also imply that traders who find that their institution has not yet recovered from the shock place market sell orders, and then progressively buy back at relatively low prices, while simultaneously placing limit orders to sell later when the price will have recovered. This generates round trip trades, which raise trading volume. We compare the case where algorithms enable traders to implement this strategy to that where traders can place orders only when they have completed their information processing task.

Histoire de l’homme et de ses langues

Jean-Marie Hombert, directeur de recherche au CNRS L’objectif de ce séminaire était de souligner le renouvellement des approches concernant les questions liées à l’émergence du langage et à la distribution des langues actuelles. Depuis une vingtaine d’années, plusieurs disciplines – en particulier la génétique des populations et la paléoanthropologie – ont proposé de nouveaux scénarii pour expliquer les grandes migrations humaines au cours des cent mille dernières années. La méthode comparati..

Origine et diversité des langues : nouvelles méthodes en linguistique historique

Jean-Marie Hombert, directeur de recherche au CNRS L’objectif de ce séminaire était de souligner le renouvellement des approches concernant les questions liées à l’émergence du langage et à la distribution des langues actuelles. Depuis une vingtaine d’années, plusieurs disciplines – en particulier la génétique des populations et la paléoanthropologie – ont proposé de nouveaux scenari pour expliquer les grandes migrations humaines au cours des 100 000 dernières années. La méthode comparative u..

Origine et diversité des langues : nouvelles méthodes en linguistique historique

Jean-Marie Hombert, directeur de recherche au CNRS L’objectif de ce séminaire était de souligner le renouvellement des approches concernant les questions liées à l’émergence du langage et à la distribution des langues actuelles. Depuis une vingtaine d’années, plusieurs disciplines – en particulier la génétique des populations et la paléoanthropologie – ont proposé de nouveaux scenari pour expliquer les grandes migrations humaines au cours des 100 000 dernières années. La méthode comparative u..