Dynamic Price Competition Briefly Sunk Costs And Entry Deterrence

Sunk Costs and Market Structure bridges the gap between the new generation of game theoretic models that has dominated the industrial organization literature over the past ten years and the traditional empirical agenda of the subject as embodied in the structure-conduct-performance paradigm developed by Joe S. Bain and his successors.

Focuses on the different methods that economic science has employed in order to detect and measure barriers to entry. This book presents a chronological analysis of competing Harvard and Chicago Schools' interpretations of this phenomenon.

Inhaltsangabe:Abstract: The contestability hypothesis has extensively been tested for the liberalised US airline markets. Entry barriers render US airline markets non-contestable. However, these studies do not allow an empirically based conclusion whether entry barriers are differently effective in preventing entry. Moreover, since previous studies exhibit no intra-firm perspective, they cannot ascertain whether a particular entry impediment prevents entry equally effective irrespective of potential entrant's characteristics. Comparable studies about the recently liberalised European airline markets are not available. This study fills these gaps by investigating European airline managers' perception of entry barriers. It turn out that some barriers are perceived to be significantly more effective than others. The perception of the effectiveness of a certain entry barrier, however, varies considerably among airline managers. Airlines' and respondents' characteristics contribute to explain this variance. Einleitung: Diese Arbeit untersucht mit Hilfe einer eigenen erhobenen empirischen Basis die Existenz von Markteintrittsbarrieren im europäischen Passagierluftverkehr nach dessen vollständiger Liberalisierung im Jahre 1997. Als Markteintrittsbarrieren werden alle Charakteristika eines an sich gewinnträchtigen Streckenmarktes betrachtet, die eine Fluggesellschaft davon abhalten, in diesen Markt einzutreten. Folgende Forschungsfragen werden beantwortet: - Welche Markteintrittsbarrieren nehmen europäische Fluggesellschaften wahr? - Sind alle Markteintrittsbarrieren aus Sicht der europäischen Airlines gleich wirksam? - Betrachten alle europäischen Fluggesellschaften eine bestimmte Markteintrittsbarriere als gleich wirksam und worauf sind mögliche Unterschiede zurückzuführen? Gang der Untersuchung: Kapitel 1 gibt eine kurze Einführung in die Problemstellung des Themas und definiert die verwendeten Begrifflichkeiten. Kapitel 2 stellt den bereits in den Literatur zugänglichen Wissensstand dar. Zunächst diskutiert es die Grundlagen der Theorie des bestreitbaren Marktes ( contestability theory ). Die praktische Bedeutung von Markteintrittsbarrieren für die Qualität des Wettbewerbs wird verdeutlicht. Anschließend werden die Forschungsmethode und Ergebnisse von 29 Studien zum Test der Contestability Hypothese im nordamerikanischen Luftverkehr vorgestellt. Fast alle dieser Studien weisen Wettbewerbsbeschränkungen aufgrund von Markteintrittsbarrieren in [...]

This is Volume 3 of the Handbook of Industrial Organization series (HIO). Volumes 1 & 2 published simultaneously in 1989 and many of the chapters were widely cited and appeared on graduate reading lists. Since the first volumes published, the field of industrial organization has continued to evolve and this volume fills the gaps. While the first two volumes of HIO contain much more discussion of the theoretical literature than of the empirical literature, it was representative of the field at that time. Since then, the empirical literature has flourished, while the theoretical literature has continued to grow, and this new volume reflects that change of emphasis. Thie volume is an excellent reference and teaching supplement for industrial organization or industrial economics, the microeconomics field that focuses on business behavior and its implications for both market structures and processes, and for related public policies. *Part of the renowned Handbooks in Economics series *Chapters are contributed by some of the leading experts in their fields *A source, reference and teaching supplement for industrial organizations or industrial economists