The profitability of a firm is jointly determined by the market structure and the firm’s organizational structure. To explore the relationship between these two structures, a real-time information processing model in a dynamic duopoly environment is developed, which allows us to examine the effects of the product market competition and the cost of delay. It is found that Decentralization tends ...

Sandra E. Black is an economist in the Research and Market Analysis Group, Federal Reserve Bank of New York. The opinions expressed here are the author’s and do not necessarily reflect opinions of the Federal Reserve Bank of New York or the Federal Reserve System. How competition affects the ability of companies to favor particular groups is a longstanding issue in the economics literature. In ...

This paper studies the strategic aspects of contextual advertising. Such advertising entails the display of relevant ads based on the topic of the content a consumer views and takes advantage of the possibility that consumers’ content browsing preferences are indicative of their product preferences. The results show that contextual targeting impacts advertiser profit in two ways: first, adverti...

This paper determines the equilibrium ownership structure in an emerging market deregulated by privatization and investment liberalization. It is shown that bidding competition in the privatization stage is necessary but not sufficient for reaching an efficient equilibrium market structure. Competition in the ensuing entry stage is also necessary. Otherwise, one firm can induce another to take ...

In a competitive market, customer decision is made to maximize his utility. It can be assumed that risk of losing a supply chain’s customer can be defined based on products utility from customer point of view. This paper takes account of product price and service level as competition criteria. The proposed model is based on non-cooperative game theory, for one-manufacturer and one-retailer supp...

Capacity and Product Market Competition: Measuring Market Power in a 'Puppy-Dog' Industry* In this paper we specify and estimate a structural model which accounts for competition in two variables: capacity and prices. The model has a two-stage setup. In the first stage firms make capacity decisions followed by a product-differentiated, price setting game in the second stage. Since costs are end...