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Competition, Innovation, and Antitrust: A Theory of Market Leaders and Its Policy Implications

Autor Federico Etro
en Limba Engleză Paperback – 14 oct 2010
In 1934 Springer published a book by Heinrich von Stackelberg, “Market and Equilibrium”, which contained pathbreaking studies on oligopolistic markets. In particular, it analyzed the behavior of a ?rm acting as a leader with a ?rst mover advantage in the choice of its production level over another ?rm acting as a follower. That analysis became the foundation of the economic theory of market leaders and is the starting point of my book. In the following pages I develop a generalization of Stackelberg’s idea, with a focus on the und- standing of the behavior of market leaders under di ?erent entry conditions, particularly when entry in the market is endogenous. Rather than limiting the analysis to the e ?ects of the market structure on the behavior of the market leaders, I also study the e ?ects of the behavior of market leaders on the market structure. In other words, this book can be seen as an attempt to describe - dogenous market structures where the strategies, the expectations on the strategies of the others, and also the entry decisions are the fruit of rational behavior. In the last few decades, economic theory has put a lot of emphasis on the rational behavior in the choice of actions and strategies and on the rational expectations on these choices. Most ?elds of economic theory have embraced both these elements adopting the rational expectations approach in models with perfect competition ?rst and imperfect competition later.
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Specificații

ISBN-13: 9783642080524
ISBN-10: 3642080529
Pagini: 304
Ilustrații: XX, 283 p.
Dimensiuni: 155 x 235 x 16 mm
Greutate: 0.43 kg
Ediția:Softcover reprint of hardcover 1st ed. 2007
Editura: Springer Berlin, Heidelberg
Colecția Springer
Locul publicării:Berlin, Heidelberg, Germany

Public țintă

Research

Cuprins

Competition, Leadership and Entry.- Strategic Commitments and Endogenous Entry.- Stackelberg Competition and Endogenous Entry.- Dynamic Competition and Endogenous Entry.- Antitrust and Abuse of Dominance.- Microsoft Economics.- Epilogue.- References.

Recenzii

From the reviews:
"Etro’s Competition, Innovation and Antirust is a remarkable and quite unique piece of work … . any serious future scholarly article or textbooks that deal with competition and market structures or antitrust issues will have to cite, and that any serious and conscientious teacher of industrial organization should recommend as reading to their students. Needless to say, the book is already playing a prominent role on my upgraded syllabus for the graduate course of industrial organization for this academic year." (Krešimir Žigic, European Competition Journal, Vol. 3 (2), 2007)
"The key insight that forms the backbone of this book by Federico Etro … is that a market leader faced with endogenous entry, subsequent to the leader’s output decision, can produce enough to deter entry, thus giving rise to a limit price and high overall market performance. … The book also offers a nice historical perspective on both the relevant theoretical foundations and the extant policy debates on antitrust issues, which is likely to be useful to young scholars." (Rabah Amir, www.intertic.org, March, 2008)
"In this innovative and thoughtful book, Federico Etro provides a novel approach to competition policy in innovative industries. Building on the notion of Stackelberg equilibrium with endogenous entry, which he has himself contributed to develop, he highlights the crucial role of potential competition in research in determining market performance. … This book will be of great value to scholars and visionary practitioners, and may hopefully have a large impact on policy." (Vincenzo Denicolo, www.intertic.org, March, 2008)
"This book explores the role of leadership in the economic theory of oligopoly, both for static oligopoly and for dynamic patent race games of R&D. It provides valuable service in reviewing existing models and extending them to careful consideration of the role of the first mover; inparticular, to allowing for the leader to take into account the effects of its actions on entry and hence subsequent market structure. I thoroughly enjoyed its refreshing perspective." (Simon Anderson, www.intertic.org, March, 2008)

Textul de pe ultima copertă

Competition, Innovation, and Antitrust develops a theory of market leadership in the presence of endogenous entry of firms and applies it to models of competition in the market and for the market. On this basis, the author provides a new approach to antitrust policy which is in support of the Chicago school but founded on a solid game-theoretic framework. The analysis is applied to the study of market leadership in the New Economy and of the recent antitrust cases involving Microsoft.
Federico Etro is Associate Professor of Economics at the University of Milan, Bicocca, and President of the International Think-tank on Innovation and Competition. He has publications on leading international journals as The American Economic Review, The RAND Journal of Economics, The Economic Journal and others, and is a consultant for international organizations and companies on industrial and antitrust policy.
 
This book explores the role of leadership in the economic theory of oligopoly, both for static oligopoly and for dynamic patent races. I thoroughly enjoyed its refreshing perspective.
Simon Anderson, University of Virginia
The simple but fundamental result on aggressive pricing by leaders facing endogenous entry, which has eluded researchers on the foundations of industrial organization so far, is bound to have a significant impact on the way people think about market entry, the role of potential competition, and issues of timing, strategic commitment and incumbency.
Rabah Amir, University of Arizona
In this innovative and thoughtful book, Etro provides a novel approach to competition policy in innovative industries. Building on the notion of Stackelberg equilibrium with endogenous entry, which he has himself contributed to develop, he highlights the crucial role of potential competition in determining market performance. It will be of great value to scholars and visionary practitioners, and may hopefully have a large impact on competition policy.
Vincenzo Denicolò, University of Bologna
 

Caracteristici

Author (visiting fellow of Harvard and NBER fellow) has extensively published in this field