Iossa, Elisabetta, Reyand, Patrick and Waterson, Michael (2022) Organising competition for the market. Journal of the European Economic Association, 20 (2). pp. 822-868. doi:10.1093/jeea/jvab044 ISSN 1542-4766.

Preview

PDF WRAP-organising-competition-market-Waterson-2021.pdf - Accepted Version - Requires a PDF viewer. Download (1413Kb) | Preview

Request Changes to record.

Abstract

We study competition for the market in a setting where incumbents (and, to a lesser extent, neighbouring incumbents) benefit from a cost or information advantage. We first compare the outcome of staggered and synchronous tenders, before drawing the implications for market design. We find the timing of tenders interrelates with the likelihood of monopolisation. For high incumbency advantages and/or discount factors monopolisation is expected, in which case synchronous tendering is preferable as it strengthens the pressure that entrants exercise on the monopolist. For low incumbency advantages and/or discount factors other firms remain active, in which case staggered tendering is preferable as it maximises competitive pressure coming from the other firms. We use bus tendering in London to illustrate our insights and draw policy implications.

Item Type:	Journal Article
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	Competition, Competition, Imperfect, Letting of contracts, Industrial organization (Economic theory)
Journal or Publication Title:	Journal of the European Economic Association
Publisher:	Oxford University Press
ISSN:	1542-4766
Official Date:	April 2022
Dates:	Date Event April 2022 Published 13 October 2021 Available 30 June 2021 Accepted
Volume:	20
Number:	2
Page Range:	pp. 822-868
DOI:	10.1093/jeea/jvab044
Status:	Peer Reviewed
Publication Status:	Published
Reuse Statement (publisher, data, author rights):	This is a pre-copyedited, author-produced version of an article accepted for publication in Journal of the European Economic Association following peer review. The version of record Elisabetta Iossa, Patrick Rey, Michael Waterson, Organising Competition for the Market, Journal of the European Economic Association, 2021;, jvab044, is available online at: https://doi.org/10.1093/jeea/jvab044
Access rights to Published version:	Restricted or Subscription Access
Date of first compliant deposit:	9 July 2021
Date of first compliant Open Access:	13 October 2022
RIOXX Funder/Project Grant:	Project/Grant ID RIOXX Funder Name Funder ID N340903 Seventh Framework Programme http://dx.doi.org/10.13039/100011102 CHESS ANR-17-EURE-0010 [ANR] Agence Nationale de la Recherche http://dx.doi.org/10.13039/501100001665 2017Y 5P J43_001 PRIN 2017 Ministero dell'Istruzione, dell'Università e della Ricerca https://www.miur.gov.it
Related URLs:	Publisher
Open Access Version:	Publisher

Request changes or add full text files to a record

Repository staff actions (login required)

View Item

Downloads