Forward contracting and the endogenous activity of heterogeneous firms

IF 1.2 4区 管理学 Q3 ECONOMICS Journal of Economics & Management Strategy Pub Date : 2024-08-12 DOI:10.1111/jems.12610
Sébastien Mitraille, Henry Thille
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Abstract

Forward contracting in an ‐firm quantity‐setting oligopoly with heterogeneous costs introduces the possibility that relatively efficient firms deter the activity of inefficient rivals by reducing their margins. The equilibrium number of firms producing positive quantities can be any of depending on the level of demand relative to firm‐specific activity thresholds, with more firms active at higher demand levels. If only one firm is active, the Bertrand outcome is obtained. This potential reduction of the number of active firms may lessen the procompetitive effect of forward sales, but does not eliminate it entirely. We explore the competition policy implications of the endogenous activity of firms, in particular for merger analysis.
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远期合约和异质企业的内生活动
在具有异质成本的企业数量确定型寡头垄断中,远期合约引入了一种可能性,即效率相对较高的企业通过降低利润率来阻止效率较低的竞争对手的活动。生产正数量的均衡企业数量可以是任何一种,这取决于相对于特定企业活动阈值的需求水平,需求水平越高,活跃的企业数量越多。如果只有一家企业活跃,则会出现伯特兰结果。活跃企业数量的这种潜在减少可能会削弱远期销售的促进竞争效应,但不会完全消除这种效应。我们探讨了企业内生活动对竞争政策的影响,尤其是对兼并分析的影响。
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来源期刊
CiteScore
3.20
自引率
5.30%
发文量
43
期刊最新文献
Issue Information Vertical mergers without foreclosure Dynamic competition for customer memberships Forward contracting and the endogenous activity of heterogeneous firms On fraud and certification of green production
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