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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Autor Principal: Roig, Guillem
Otros Autores: Facultad de Economía
Formato: Documento de trabajo (Working Paper)
Lenguaje:Español (Spanish)
Publicado: 2018
Materias:
Acceso en línea:http://repository.urosario.edu.co/handle/10336/17852
id ir-10336-17852
recordtype dspace
spelling 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 11,828437