Questions tagged [industrial-organisation]

Industrial organization is a field that builds on the theory of the firm by examining the structure of (and, therefore, the boundaries between) firms and markets. Industrial organization adds real-world complications to the perfectly competitive model, complications such as transaction costs, limited information, and barriers to entry of new firms that may be associated with imperfect competition.

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Cournot game with 2 firms

I have given 2 firms in a market with constant marginal costs and no fixed costs market demand has $D(p)$ The ﬁrms play a Cournot game I'm supposed to Calculate the equilibrium quantity for each ...
31 views

Market Power and Prices in the US

I'm trying to get a measure of market power in the US. Here's what I'd be interested in, ranked from best (what I'm really after) to worst (stuff that kind of hints at my measure, but isn't really it. ...
472 views

Mixed Cournot/Bertrand Duopoly [closed]

I am learning basic Oligopoly models. I know that : In Cournot model firms set output - output is the strategic variable. In Bertrand model firms set prices - price is the strategic variable. ...
25 views

Setting prices in mobile telephony

Can someone please explain or provide some useful link on factors affecting setting prices of mobile telephony services?
186 views

Find Variable Cost per Unit

I am trying to do this problem, and I am not getting the answer. I need to find the fixed cost of system 1, and system 2. I know that the fixed cost will be the y-intercept of the equation. Fixed ...
46 views

Given that organisational capital is specific and difficult to replicate it is considered a competitive advantage (see e.g. here) According to Wang (2014) competitive advantage is obtained when an ...
29 views

How to go from demand elasticities to a demand function? (merger simulation)

I am reading this paper: https://econpapers.repec.org/article/oupjleorg/v_3a10_3ay_3a1994_3ai_3a2_3ap_3a407-26.htm (Werden and Froeb 1994) about merger simulation. The paper is above my level, so I'...
55 views

Are there any studies, academic papers or articles that defy “common” knowledge", i.e that patents give an incentive for R&D to private business?

In Economic Growth and particularly dynamic optimization. My professor taught us that an intertemporal allocation is a dynamic optimum(Pareto Optimum) only if(necessary condition) at any given ...
673 views

I'm trying to derive the solution to a final producer with unit elasticity of substitution and a continuum of inputs (of measure $x$). She minimizes input costs, given an output of $q$. $$\min_{\{y(... 0answers 31 views Is there a standard way of classifying industries into primary, secondary, and tertiary? For example, does any government (or academic) have a mapping from industry to sector. For example, mining is primary industry, and retail is tertiary, and so on... 0answers 48 views Estimating Demand for Goods with n Choices I have a data set containing n observations (rows) of mobile applications. The dependent variable is the number of installations -- the variable is categorical (with more than 2 categories). Therefore ... 0answers 238 views STATA: Estimation of Own-Price and Cross-Price Elasticities for Logit, Nested Logit, and BLP Models I am working with some data on automobile sales and characteristics in a small country. It is an unbalanced panel dataset taken over 6 years and over 5 market segments. I am trying to construct some ... 0answers 61 views Symmetric Nash Equilibrium in Stahl (1996) Let F(p) denote the distribution of prices in a market, \pi(p, F) are profits choosing p given distribution F. E\pi(p,F) is defined to be$$ E \pi(p, F) = R(p) \psi(p, F)$$where R(p) = p ... 2answers 226 views Solving a Cournot Equilibrium, the case of Q=q1+q2, Q(q1,q2)=q1+q2 I am struggling with the differentiating between when to use  Q=q_1+q_2 and Q(q_1,q_2)=q_1+q_2 For a 2 player cournot game, given$$ P=a-bQ, with \ MC's \ c_1 \neq c_2 $$I find the ... 1answer 55 views Calculating Market Concentration without sales data I want to calculate market concentration (HHI and C4) but I don't have sales data. Is it accurate to use the share of establishments of each firm as a proxy for market power? Could you list some ... 1answer 28 views Profit-maximization for a monopoly Between two countries, Richland and Poorland, with a strict ban on cross-border sales agreed with the Poorlandian government. The respective demand functions for both countries are: Q_{poor} = 10 - ... 1answer 76 views Prices set by firms are the same in a Salop circle. But why? Trying to calculate the prices charged by each firm, I don't understand why the solution argues that all firms set the same price. If I use the assumption that they are the same, I can figure out the ... 2answers 92 views Definition of covered market I do Industrial Organization course, and I've seen the phrase "market is covered" several times in my lecture slides, however, I'm struggling to find the formal definition of "covered market" and the ... 1answer 126 views When a demand function is split, how do we algebraically change function For example, in tacit collusion for a Bertrand situation, demand would be split between the two colluding firms. How would the reflect upon the demand function? For example D = 100 - 2Q, and for ... 1answer 32 views Developmental studies and industrial policy for the highly developed countries - research trends? Developmental studies usually is field of reasearch whose object is developing countries and industrial policy studies similarly are attributed to the developing countries or the things of the past. ... 1answer 41 views :History: Industry threatening to leave if social change takes effect With growing inequalities and salary gap, left-wing politicians are asking for social reforms in some countries (I am thinking of France). Social reform include: equal pay for women, maternity leave,... 1answer 52 views Directed search with privately informed buyers and capacities My question seems to be a basic one and there should be a rather well-known reference in the (IO or labor) search literature. I will upvote (and comment on) any relevant answer and I will accept an ... 1answer 27 views How would a firm increase price in such a scenario? I have the following question: If a firm with a lower marginal cost wants to increase prices in a homogenous goods industry in which demand is perfectly inelastic and supply is in excess, what should ... 1answer 62 views Who is working right now? (coronoavirus) Is there any research, graphs, or any formal (non-opinion) information on where I can get information on what people are working right now? I want to know, who is still collecting a paycheck. I am a ... 1answer 27 views What happens to consumer surplus and profits as firms get more information in Hotelling's duopoly model? In the Duopoly on the line [0,1] with customers uniformly distributed, with firm A on the 0 side and firm B on 1's side, we know that if the firms have no information about the customer, there will be ... 1answer 116 views Economic Profit and the Return on Invested Capital In my finance classes, I always learned that the a firm earning an "economic profit" is one for which its return on invested capital (ROIC) is greater than it's opportunity cost of capital (usually ... 1answer 29 views What is an Economic Sector? I am of the understanding that an Economy is broken down as follows: Traditional; Command; Market; Mixed. Each Economy being made up of Sectors, which in turn, are made up of Industries. Simply put,... 1answer 89 views Where can I look up a companies Herfindahl index? Where can I find Herfindahl indexes on companies (current or past)? Are there any published lists put out by a research institution? 1answer 165 views Intuition behind a cournot duopoly nash equilibrium producing a higher output than a monopoly? I am just wondering if someone could explain the descriptive, not mathematical intuition behind why a cournot equilibrium for a duopoly produces a higher level of output than a monopolist but lower ... 1answer 95 views Help with Monopolistic Competition Proof, Prove Love for Variety I need some help with a proof. Assume η = 2 and there are just two goods. Verify that the following utility function exhibits Love for Variety tastes, show that: u(λa + [1 − λ]b, λb + [1 − λ]... 1answer 135 views Cournot model with piecewise inverse demand Do you know if there exist results for Cournot oligopoly (or duopoly) when the inverse demand is a piecewise continuous? Something of this type P(Q) = \alpha-\beta Q (if 0\leq Q<Q') P(Q) = ... 1answer 42 views Quality Provision Game A seller owns a single unit of an invisible good. It is worth v(s) to a buyer, where s ∈ R^+ is the quality of the good. The function v(·) is strictly increasing and strictly concave with v(0) =... 1answer 223 views Short-run price competition with capacity contraints I am doing an undergrad course in Industrial Organization and at the end of the chapter on Short-run price competition (Bertrand and Cournot models mainly), there is a question with which I'm ... 1answer 762 views University course references for Market Structure/Industrial Organization Are there any books that are used in University-level courses that contain a detailed analysis of market structure ( Perfect competition , Monopoly and so on)? 1answer 200 views Market structure and price setting: Imperfect competition in the final good sector I'm looking at an economy with two sectors. The intermediate good is produced under perfect competition and Cobb-Douglas production. There is a fixed-cost for producers to enter the final market. ... 1answer 64 views Manufacturing economics book? I am interested in manufacturing economics - suppose I have to built an engine, I would like to learn a systematic approach to break down what the costs of building an engine would be and how I could ... 1answer 206 views Kimball (1995) Specification of Final Good Production Kimball (1995) defines production of the final good (Y) with intermediate goods y_l in his equation (1) as$$ 1 = \int_0^1 G\left(\frac{y_l}{Y}\right) dl  with $G(1) = 1$, $G'(x) > 0$ and $... 0answers 18 views Airline competition and econometrics If I wish to understand the competitive constraints of airline A on airline B, what sort of econometric relationship should I investigate ?. Immediately what comes to mind is to look at the impact of ... 0answers 32 views Has contest theory ever been used to design real-world contests? Contest theory, very much like auction theory, studies how people act in a contest and the properties of such a competition. There is a large literature that investigates different aspects of the ... 0answers 26 views Industrial Economics Help I am wondering if I have found q for all 3 firms correctly before I move on. I feel like I am doing something completely wrong, but can't seem to figure out what I truly need to do. (Sorry for the ... 0answers 103 views Tourist Natives Model Every night, all 60 inhabitants of a tiny village visit one of the village’s taverns (not necessarily the same tavern) and an average of 75 strangers do the same. Both the villagers and the strangers ... 0answers 39 views What is the difference between personal consumption expenditure price and PCE quantity? What is the difference between these two things? How is PCE price different from PCE quantity? Also, I am confused about the difference between PCE quantity and measure of real output. For example, ... 1answer 341 views Collusion, deviation from equilibrium Two firms can produce either low (L), medium (M) or high (H) quantity. The payoff matrix is given by: What is the outcome of this game if firms play only once? Suppose the game is played for infinite ... 0answers 85 views Price discrimination If I have 3 consumers who I want to sell package 1, 2 and 3 to respectively. Meaning consumer 1 I would like to sell package 1 to, consumer 2 I would like to sell package 2 to and so on. The packages ... 0answers 21 views Microeconomics and management science of professional open source companies? Are there research (and stories more broadly) about professional open source companies? To what types of products their are appropriate, what licensing schemes to choose? How to managed patents and IP?... 0answers 173 views How to solve model with a final good (in a perfect competition), and intermediate goods (monopolistic competition)? Let's imagine there's only one final good produced by one firm, in a perfect competition market. In the intermediate market, we have$N$goods which are produced and used as factor inputs for the ... 0answers 382 views How to compute Social Welfare in this model? The first part of this scientific article analyzes reward-based crowdfunding. The assumptions are: Seller is a monopolist Unit mass of consumers Unit demand Two periods Individuals are identified by$...
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I want to analyze the following setting: An entrepreneur (with monopoly power) sells a product in two periods. In period 1 there are two consumer groups (denoted by 1 and 2) and in period 2 there is ...
Firms A and B are in an oligopoly. They both face the linear market demand curve $X=A-\alpha P$, where $X$ is total market demand, and $P$ is price. Assume constant marginal costs $C_{A}$ and $C_{B}$, ...