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Article: When Does Aftermarket Monopolization Soften Foremarket Competition?

TitleWhen Does Aftermarket Monopolization Soften Foremarket Competition?
Authors
Issue Date2016
Citation
Journal of Economics and Management Strategy, 2016, v. 25, n. 4, p. 852-879 How to Cite?
Abstract© 2016 Wiley Periodicals, Inc. This paper investigates firms' abilities to tacitly collude when they each monopolize a proprietary aftermarket. When firms' aftermarkets are completely isolated from foremarket competition, they cannot tacitly collude more easily than single-product firms. However, when their aftermarket power is contested by foremarket competition as equipment owners view new equipment as a substitute for their incumbent firm's aftermarket product, profitable tacit collusion is sustainable among a larger number of firms. Conditions under which introduction of aftermarket competition hinders firms' ability to tacitly collude are characterized.
Persistent Identifierhttp://hdl.handle.net/10722/269744
ISSN
2023 Impact Factor: 1.2
2023 SCImago Journal Rankings: 0.961
ISI Accession Number ID

 

DC FieldValueLanguage
dc.contributor.authorFong, Yuk Fai-
dc.contributor.authorLi, Jin-
dc.contributor.authorLiu, Ke-
dc.date.accessioned2019-04-30T01:49:28Z-
dc.date.available2019-04-30T01:49:28Z-
dc.date.issued2016-
dc.identifier.citationJournal of Economics and Management Strategy, 2016, v. 25, n. 4, p. 852-879-
dc.identifier.issn1058-6407-
dc.identifier.urihttp://hdl.handle.net/10722/269744-
dc.description.abstract© 2016 Wiley Periodicals, Inc. This paper investigates firms' abilities to tacitly collude when they each monopolize a proprietary aftermarket. When firms' aftermarkets are completely isolated from foremarket competition, they cannot tacitly collude more easily than single-product firms. However, when their aftermarket power is contested by foremarket competition as equipment owners view new equipment as a substitute for their incumbent firm's aftermarket product, profitable tacit collusion is sustainable among a larger number of firms. Conditions under which introduction of aftermarket competition hinders firms' ability to tacitly collude are characterized.-
dc.languageeng-
dc.relation.ispartofJournal of Economics and Management Strategy-
dc.titleWhen Does Aftermarket Monopolization Soften Foremarket Competition?-
dc.typeArticle-
dc.description.naturelink_to_subscribed_fulltext-
dc.identifier.doi10.1111/jems.12167-
dc.identifier.scopuseid_2-s2.0-84962157129-
dc.identifier.volume25-
dc.identifier.issue4-
dc.identifier.spage852-
dc.identifier.epage879-
dc.identifier.eissn1530-9134-
dc.identifier.isiWOS:000387408600003-
dc.identifier.issnl1058-6407-

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