How Do Firms Compete When Faced with Architectural Changes?

How do firms compete in architectural changes?: Lessons from optical storage media industry

Do Small Firms Compete with Large Firms?

Despite the pervasive phenomenon of scale economies the majority of firms has always been small firms. The emergence of small firms as a means of economic development on both sides of the Atlantic has been one of the major new topics of economic policy since the 1980s. This has drawn renewed attention to the question of how small firms are able to exist. The theories of strategic niches and dyn...

When schools compete, how do they compete? An assessment of Chile's nationwide school voucher program

In 1981, Chile introduced nationwide school choice by providing vouchers to any student wishing to attend private school. As a result, more than 1,000 private schools entered the market, and the private enrollment rate increased by 20 percentage points, with greater impacts in larger, more urban, and wealthier communities. Using di erences across roughly 300 municipalities, we show that the rst...

Information Sharing When Firms Compete for Common-Value Customers

Extant research suggests that the sharing of individual-level customer information benefits competing firms by allowing them to better discriminate their customers and soften the price competition. This paper shows that the information sharing may benefit competing firms even without price discrimination. Based on a common-value auction framework, the paper studies the case where two firms comp...

Mergers Increase Output When Firms Compete by Managing Revenue

We find that hotel mergers increase occupancy. In some specifications, price also rises. These effects occur only in markets with high capacity utilization and high uncertainty. These findings lead us to reject simple models of price or quantity competition in favor of models of “revenue management,” where firms price to fill available capacity in the face of uncertain demand. JEL classificatio...