5 research outputs found
Entry and exit in a liberalised market
We analyze the determinants of entry and exit in the European Airline Markets in the post-liberalization period. Unlike previous studies, we find that the presence of charter or seasonal operators and the level of quality provided by the incumbents are relevant to explain entry and exit. Differential traits in the main low cost airlines' entry and exit behavior are also analysed
Flexible vs dedicated technology adoption in the presence of a public firm
We study firms' adoption of flexible versus dedicated technologies in the context of a mixed versus a private duopoly with product differentiation. The flexible technology allows a firm to become multiproduct or multimarket without bearing additional costs. We find that a configuration where both firms adopt flexible technologies is more likely to arise in equilibrium in the private duopoly. A similar result occurs when both firms use a dedicated technology in the case of either almost independent products or products that are close substitutes. Privatization of the public firm is socially beneficial only in limited circumstances
Public policy towards R&D in a mixed duopoly with spillovers
We investigate the use of subsidies to R&D, both in a mixed and
a private duopoly market. We show that the socially optimal R&D
subsidy is positive and increasing in the degree of spillovers both in
the private and the mixed duopoly, although it is lower for the former
than for the latter. We also nd support for the empirical claim that
privatization is followed by a scaling down of the R&D activity. A
comparative static analysis of welfare levels suggests that privatization
is welfare detrimental, which lends some support to the views against
the widespread adoption of privatization programs
R&D policy and privatization in a mixed oligopoly
We introduce R&D activity and R&D subsidies in the context of a mixed oligopoly and evaluate the effects of privatization on welfare. We show that when R&D subsidies are employed, privatization is welfare and R&D promoting provided that the number of competitors is sufficiently large
Tests for the consistency of three-level nested logit models with utility maximization
This paper provides necessary conditions for testing the local consistency of three-level nested logit models with randomutilitymaximization.We find that for a modelwith two sub-nests per nest the conditions can lead to a substantial increase in the range of acceptable dissimilarity parameters, irrespective of the number of alternatives per sub-nest