Iossa, Elisabetta, Rey, Patrick and Waterson, Michael (2019) Organizing competition for the market. Working Paper. Coventry: University of Warwick. Department of Economics. Warwick economics research papers series (WERPS) (1188). (Unpublished)

Preview

PDF WRAP-organizing-competition-market-Waterson-2019.pdf - Other - Requires a PDF viewer. Download (1239Kb) | Preview

Request Changes to record.

Abstract

The paper studies competition for the market in a setting where incumbents (and, to a lesser extent, neighboring incumbents) benet from a cost advantage. The paper first compares the outcome of staggered and synchronous tenders, before drawing the implications for market design. We find that the timing of tenders should depend on the likelihood of monopolization. When monopolization is expected, synchronous tendering is preferable, as it strengthens the pressure that entrants exercise on the monopolist. When instead other firms remain active, staggered tenderingis preferable, asitmaximizes the competitive pressure that comes from the other firms.

Item Type:	Working or Discussion Paper (Working Paper)
Subjects:	H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Letting of contracts -- Mathematical models, Markets
Series Name:	Warwick economics research papers series (WERPS)
Publisher:	University of Warwick. Department of Economics
Place of Publication:	Coventry
ISSN:	0083-7350
Official Date:	January 2019
Dates:	Date Event January 2019 Published
Number:	1188
Number of Pages:	12
Institution:	University of Warwick
Status:	Not Peer Reviewed
Publication Status:	Unpublished
Access rights to Published version:	Open Access
RIOXX Funder/Project Grant:	Project/Grant ID RIOXX Funder Name Funder ID 340903 Seventh Framework Programme http://dx.doi.org/10.13039/100011102

Request changes or add full text files to a record

Repository staff actions (login required)

View Item

Downloads