Investment and Market Structure in Common Agency Games
I study the incentives of a common buyer to undertake cooperative investment with a group of suppliers providing a homogeneous input. In my model, investment is not directed to increase the gains from trade but to enhance the competitive pressure among suppliers. At the same time, however, investmen...
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2018
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ir-10336-178522019-09-19T12:37:01Z Investment and Market Structure in Common Agency Games Roig, Guillem Facultad de Economía Producción Organización industrial (Teoría económica) Cooperación industrial Cooperative investment Market structure Competition Bargaining position D44; L11. I study the incentives of a common buyer to undertake cooperative investment with a group of suppliers providing a homogeneous input. In my model, investment is not directed to increase the gains from trade but to enhance the competitive pressure among suppliers. At the same time, however, investment may strengthen the bargaining position of suppliers. Which effect dominates depends on the intensity of competition in the trading game, which also determines the equilibrium distribution of investment. Then, the model reproduces different market structures, and a firm may have higher incentives to become active in markets where competition is expected to be vigorous. 2018-03-23 2018-04-11T14:28:05Z info:eu-repo/semantics/workingPaper info:eu-repo/semantics/publishedVersion http://repository.urosario.edu.co/handle/10336/17852 spa info:eu-repo/semantics/openAccess application/pdf |
institution |
EdocUR - Universidad del Rosario |
collection |
DSpace |
language |
Español (Spanish) |
topic |
Producción Organización industrial (Teoría económica) Cooperación industrial Cooperative investment Market structure Competition Bargaining position D44; L11. |
spellingShingle |
Producción Organización industrial (Teoría económica) Cooperación industrial Cooperative investment Market structure Competition Bargaining position D44; L11. Roig, Guillem Investment and Market Structure in Common Agency Games |
description |
I study the incentives of a common buyer to undertake cooperative investment with a group of suppliers providing a homogeneous input. In my model, investment is not directed to increase the gains from trade but to enhance the competitive pressure among suppliers. At the same time, however, investment may strengthen the bargaining position of suppliers. Which effect dominates depends on the intensity of competition in the trading game, which also determines the equilibrium distribution of investment. Then, the model reproduces different market structures, and a firm may have higher incentives to become active in markets where competition is expected to be vigorous. |
author2 |
Facultad de Economía |
author_facet |
Facultad de Economía Roig, Guillem |
format |
Documento de trabajo (Working Paper) |
author |
Roig, Guillem |
author_sort |
Roig, Guillem |
title |
Investment and Market Structure in Common Agency Games |
title_short |
Investment and Market Structure in Common Agency Games |
title_full |
Investment and Market Structure in Common Agency Games |
title_fullStr |
Investment and Market Structure in Common Agency Games |
title_full_unstemmed |
Investment and Market Structure in Common Agency Games |
title_sort |
investment and market structure in common agency games |
publishDate |
2018 |
url |
http://repository.urosario.edu.co/handle/10336/17852 |
_version_ |
1645140767850627072 |
score |
12,131701 |