industrial organization and behaviour hinnerk gnutzmann · 2019-03-11 · hinnerk gnutzmann thesis...
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Industrial Organization and Behaviour
Hinnerk Gnutzmann
Thesis submitted for assessment with a view to obtaining the degree of Doctor of Economics of the European University Institute
Florence, 10 September 2013
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
European University Institute Department of Economics
Industrial Organization and Behaviour
Hinnerk Gnutzmann
Thesis submitted for assessment with a view to obtaining the degree of Doctor of Economics of the European University Institute
Examining Board
Prof. Thomas Gehrig, University of Vienna Prof. Piero Gottardi, Supervisor, European University Institute Prof. Andrea Mattozzi, European University Institute Prof. Domenico Menicucci, University of Florence
© Hinnerk Gnutzmann, 2013 No part of this thesis may be copied, reproduced or transmitted without prior permission of the author
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❚♦ ♠② ♣❛&❡♥)*
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❆❝❦♥♦✇❧❡❞❣♠❡♥+,
❚❤✐# $❤❡#✐# &❡♣&❡#❡♥$# $❤❡ ❝♦♥❝❧✉#✐♦♥ ♦❢ ❛ ❧♦♥❣✱ ✈❛&✐❡❞✱ ❡①❝✐$✐♥❣ ❛♥❞ ❛$ $✐♠❡# ❞✐✣❝✉❧$ ❥♦✉&♥❡②✳
■ ❛♠ ✐♠♠❡♥#❡❧② ❣&❛$❡❢✉❧ $♦ ❤❛✈❡ ❤❛❞ $❤❡ ♦♣♣♦&$✉♥✐$② $♦ ✉♥❞❡&$❛❦❡ ✐$✱ ❛♥❞ ✐♥ $❤❡ ❝♦✉&#❡
&❡❧✐❡❞ ♦♥ $❤❡ ❤❡❧♣ ♦❢ ♠❛♥② ♣❡♦♣❧❡✳ ❚♦ ❛❧❧ ♦❢ $❤❡♠✱ ■ ❛♠ ❞❡❡♣❧② ❣&❛$❡❢✉❧✳
;✐❡&♦ ●♦$$❛&❞✐✱ ♠② ✜&#$ #✉♣❡&✈✐#♦&✱ $&✉#$❡❞ ♠❡ $♦ ✉♥❞❡&$❛❦❡ $❤✐# ♣&♦❥❡❝$✱ ❝&✐$✐❝❛❧❧② &❡✲
✈✐❡✇❡❞ ❡❛❝❤ ❛&❣✉♠❡♥$ ■ ♠❛❞❡✱ ❛♥❞ ♦✛❡&❡❞ ❤❡❧♣ ✇❤❡♥❡✈❡& ♥❡❡❞❡❞❀ ❢&♦♠ ❤✐♠✱ ■ ❧❡❛&♥❡❞ ❛ ❧♦$✳
❉♦♠❡♥✐❝♦ ▼❡♥✐❝✉❝❝✐✱ ♠② ❡①$❡&♥❛❧ ❝♦✕#✉♣❡&✈✐#♦&✱ &❡❛❞ ♠② ✇♦&❦ ✐♥ ❣&❡❛$ ❞❡$❛✐❧✱ #❡♥$ ❧♦♥❣ ❛♥❞
✐♥✈❛❧✉❛❜❧❡ ❡♠❛✐❧# ✇✐$❤ ❞❡$❛✐❧❡❞ ❝♦♠♠❡♥$#✱ ♠❛❞❡ $✐♠❡ ❢♦& ♠❡❡$✐♥❣# ❛♥❞ ❡✈❡♥ ❛$$❡♥❞❡❞ ♠②
♣&❡#❡♥$❛$✐♦♥# ❛$ $❤❡ ❊❯■✳ ▼② #❡❝♦♥❞ #✉♣❡&✈✐#♦&✱ ❆♥❞&❡❛ ▼❛$$♦③③✐✱ ✇❛# ❧✐❦❡✇✐#❡ ❛ ❣&❡❛$ ❤❡❧♣✳
❚❤❡✐& ✐♥#✐❣❤$#✱ ✐♥$❡❧❧❡❝$✉❛❧ ❛♥❞ ♠♦&❛❧ #✉♣♣♦&$✱ ❛♥❞ ✉♥❜♦✉♥❞❡❞ ❣❡♥❡&♦#✐$② ♠❛❞❡ $❤✐# ♣&♦❥❡❝$
♣♦##✐❜❧❡✳
❙❛❧✈❛$♦& ❖&$✐❣✉❡&❛ ❛♥❞ ▼❛##✐♠♦ ▼♦&❡❧❧✐ ❢♦❧❧♦✇❡❞ $❤❡ $❤❡#✐# ✐♥ ✐$# ❡❛&❧✐❡& #$❛❣❡#✳ ■✬♠
❣&❛$❡❢✉❧ ❢♦& $❤❡ ❚❆#❤✐♣ ✉♥❞❡& ❋❡&♥❛♥❞♦ ❱❡❣❛✕❘❡❞♦♥❞♦ ❛♥❞ $❤❡ &❡#❡❛&❝❤ ❛##✐#$❛♥❝❡ $♦ ❏❡&♦♠❡
❆❞❞❛✳ ❚❤❛♥❦# $♦ ;✐♦$& ❙♣✐❡✇❛♥♦✇#❦✐✱ ♥♦$ ❥✉#$ ❢♦& ❤✐# ❝♦♠♠❡♥$# ♦♥ ♠♦#$ ♦❢ $❤❡ $❤❡#✐#✱ ❜✉$
❤✐# ❢&✐❡♥❞#❤✐♣✳
■ #♣❡♥$ $❤❡ ❧❛#$ ②❡❛& ❛$ $❤❡ ❯♥✐✈❡&#✐$❛ ❈❛$$♦❧✐❝❛ ❞❡❧ ❙❛❝&♦ ❈✉♦&❡ ✐♥ ▼✐❧❛♥✱ ✇❤♦ ❣❡♥❡&♦✉#❧②
❛❧❧♦✇❡❞ ♠❡ $♦ ✜♥✐#❤ ♠② $❤❡#✐# $❤❡&❡✳ ▲✉✐❣✐ ❋✐❧✐♣♣✐♥✐ ❡♥❝♦✉&❛❣❡❞ ♠② ✇♦&❦✱ ❛❞✈✐#❡❞ ♠❡ ❛♥❞
❤❡❧♣❡❞ ✐♥ ✐♥♥✉♠❡&❛❜❧❡ ✇❛②#✳ ❚❤❛♥❦# ❢♦& $❤❡ ❞✐#❝✉##✐♦♥# ✇✐$❤ ❙❛❧✈❛$♦&❡ ;✐❝❝♦❧♦✳ ❈❛&#$❡♥
◆✐❡❧#❡♥ $&✉#$❡❞ ♠❡ $♦ ❜❡ ❚❆ ❢♦& ❤✐# ❝♦✉&#❡✳ ❋✐♥❛❧❧②✱ ●✐♦✈❛♥♥✐ ❯&#✐♥♦ #❤❛&❡❞ $❤❡ ♦✣❝❡ ❛♥❞
$❤❡ ✉♣# ❛♥❞ ❞♦✇♥# ✇✐$❤ ♠❡✳
▼❛♥② $❤❛♥❦# $♦ $❤❡ ❉❡✉$#❝❤❡ ❆❦❛❞❡♠✐#❝❤❡ ❆✉#$❛✉#❝❤❞✐❡♥#$ ✭❉❆❆❉✮✱ ✇❤♦ #✉♣♣♦&$❡❞ ♠❡
✇✐$❤ ❛ #❝❤♦❧❛&#❤✐♣ ♥♦$ ❥✉#$ ❞✉&✐♥❣ $❤❡ ;❤❉ ❜✉$ ❛❧#♦ ❜❡❢♦&❡✱ ❛♥❞ $❤❡ ❊✉&♦♣❡❛♥ ❯♥✐✈❡&#✐$② ■♥✲
#$✐$✉$❡ ❢♦& ✜♥❛♥❝✐❛❧ #✉♣♣♦&$✳ ❚❤❛♥❦# $♦ ♠② ❝❧❛##♠❛$❡# ❢♦& $❤❡ ♣❧❡❛#❛♥$ ✇♦&❦✐♥❣ ❡♥✈✐&♦♥♠❡♥$✱
❛♥❞ ❏❡##✐❝❛ ❙♣❛$❛&♦✱ ▲✉❝✐❛ ❱✐❣♥❛✱ ▼❛&❝✐❛ ●❛#$❛❧❞♦✱ ❏✉❧✐❛ ❱❛❧❡&✐♦✱ ❛♥❞ ❚❤♦♠❛# ❇♦✉&❦❡ ❢♦&
$❤❡✐& ✐♠♣❡❝❝❛❜❧❡ #✉♣♣♦&$✳
❉✉&✐♥❣ $❤❡ ;❤❉✱ ■ ❡♥❥♦②❡❞ $❤❡ ❤♦#♣✐$❛❧✐$② ♦❢ $❤❡ ❖❙❈❊ ❆❝❛❞❡♠② ✐♥ ❇✐#❤❦❡❦✱ ❛♥❞ $❤❡ ◆❡✇
❊❝♦♥♦♠✐❝ ❙❝❤♦♦❧ ✐♥ ▼♦#❝♦✇✳ ❚❤❛♥❦# ❛&❡ ❞✉❡ $♦ $❤❡#❡ ✐♥#$✐$✉$✐♦♥#✱ ❛♥❞ ✐♥ ♣❛&$✐❝✉❧❛& ▼❛①✐♠
❘②❛❜❦♦✈ ❛♥❞ ◆❛$❛❧✐❛ ❱♦❧❝❤❦♦✈❛✳ ❚❤❛♥❦# ❛❧#♦ $♦ ❆❧❡①❛♥❞❡& ;❤❧❡❦❛♥♦✈ ❢♦& ❞✐#❝✉##✐♦♥#✳
✐
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✐✐
▲✐❢❡ ❞♦❡& ♥♦( &(❛*( ✇✐(❤ (❤❡ -❤❉ ♣*♦❣*❛♠✳ ■✬♠ ❣*❛(❡❢✉❧ (♦ -❛✉❧ ❑❛((✉♠❛♥ ❢♦* ❡♥❝♦✉*❛❣✐♥❣
♠❡ (♦ &(❛*( *❡&❡❛*❝❤✱ ❛♥❞ (♦ ❚♦♠ ❑❛*❦✐♥&❦② ❢♦* ❧♦♥❣ &(✉❞② &❡&&✐♦♥&✱ ♠❛② ❤❡ *❡&( ✐♥ ♣❡❛❝❡✳
-❡(❡* ❞❡ ●✐❥&❡❧✱ ❍❛♥& ❆♠♠❛♥✱ ❏✉*❥❡♥ ❑❛♠♣❤♦*&(✱ ❘♦❜ ❆❧❡&&✐❡✱ ❍❛**② ●❛**❡(&❡♥ ❛♥❞ ♠②
❝♦✕❛✉(❤♦*& ❑✐❧❧✐❛♥ ▼❝❈❛*(❤② ❛♥❞ ❇*✐❣✐((❡ ❯♥❣❡* ❧❡❞ ♠❡ (❤*♦✉❣❤ (❤❡ ❘❡&❡❛*❝❤ ▼❛&(❡*&✳ ■(
✇❛& ❛ ✉♥✐I✉❡ ❡①♣❡*✐❡♥❝❡✱ ✇❤✐❝❤ ♠❡❛♥& ✈❡*② ♠✉❝❤ (♦ ♠❡✳ ■♥ ❑❛*❧&*✉❤❡✱ ❈❤*✐&(♦❢ ❲❡✐♥❤❛*❞(
(*✉&(❡❞ ✐♥ ♠❡❀ ✐( ✇❛& ✇✐(❤ ▼❛*❝ ❆❞❛♠ (❤❛( ■ ✜*&( ✇♦*❦❡❞ ♦♥ -❡♥♥② ❆✉❝(✐♦♥&✳
■♥ ❍❛♥♥♦✈❡*✱ (❤❡ ❱✐"✐♦♥❛&✐❡" ❤❛✈❡ ❜❡❡♥ ♠② ❢*✐❡♥❞& ❢♦* ♠❛♥② ②❡❛*&✳ ▼② ♣❛*❡♥(&✬ ✉♥✇❛✲
✈❡*✐♥❣ &✉♣♣♦*(✱ ✇✐(❤ ❤❡❛*( ❛♥❞ ❤❛♥❞✱ ❤❛& ❜❡❡♥ (❤❡ ❝♦♥&(❛♥( &✐♥❝❡ ■ ✇❛& ❜♦*♥❀ ■ ❞❡❞✐❝❛(❡ (❤✐&
(❤❡&✐& (♦ (❤❡♠✳
❚♦ ❆*❡✈✐❦✱ ♠② ♠❛✐♥ ❞✐&❝♦✈❡*② ✐♥ (❤❡&❡ ♣❛&( ②❡❛*&✱ ♣❛*(♥❡*✱ ❢*✐❡♥❞ ❛♥❞ ❝♦✕❛✉(❤♦*✿ ✇✐(❤♦✉(
②♦✉✱ ■ ❝♦✉❧❞ ♥♦( ❤❛✈❡ ❞♦♥❡ ✐(✳ ❨♦✉ ❜♦*❡ (❤❡ ❝*♦&& ✇✐(❤ ♠❡✱ ❛( (✐♠❡& ❢♦* ♠❡✳ ❚♦ ♠❛♥② ♠♦*❡
②❡❛*&✦
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈♦♥#❡♥#%
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✶✳✶ ■♥$%♦❞✉❝$✐♦♥ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✼
✶✳✷ ❙✇✐$❝❤✐♥❣ 1%♦❝❡33❡3 ❛♥❞ ❘❡$❡♥$✐♦♥ 1%✐❝✐♥❣ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✶✵
✶✳✸ ▼♦❞❡❧ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✶✶
✶✳✹ ❊<✉✐❧✐❜%✐✉♠ ❆♥❛❧②3✐3 ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✶✸
✶✳✹✳✶ ▼❛$✉%❡ ▼❛%❦❡$ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✶✹
✶✳✹✳✷ ■♥$%♦❞✉❝$♦%② 1%✐❝✐♥❣ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✷✸
✶✳✺ ❙$%❛$❡❣✐❝ ❊✛❡❝$3 ♦❢ ❘❡$❡♥$✐♦♥ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✷✺
✶✳✺✳✶ ❯♥✐❢♦%♠ ❊①❛♠♣❧❡ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✷✾
✶✳✻ ❲❡❧❢❛%❡ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✷✾
✶✳✼ ❉✐3❝✉33✐♦♥ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✸✶
✶✳✼✳✶ 1%✐❝❡ ▼❛$❝❤✐♥❣ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✸✶
✶✳✼✳✷ ▼②♦♣✐❝ ❈♦♥3✉♠❡%3 ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✸✸
✶✳✼✳✸ ❚❤❡ ❘♦❧❡ ♦❢ ❈♦♥3✉♠❡% ❍❡$❡%♦❣❡♥❡✐$② ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✸✹
✶✳✽ ❈♦♥❝❧✉3✐♦♥ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✸✺
✷ ❍✐).♦-②✕❇❛)❡❞ !-✐❝❡ ❉✐)❝-✐♠✐♥❛.✐♦♥ ❛♥❞ ❲❡❧❢❛-❡ ✐♥ ❛ ●-♦✇✐♥❣ ▼❛-❦❡. ✸✾
✷✳✶ ■♥$%♦❞✉❝$✐♦♥ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✸✾
✷✳✷ ▼♦❞❡❧ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✹✷
✷✳✸ ❊<✉✐❧✐❜%✐✉♠ ❆♥❛❧②3✐3 ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✹✺
✷✳✸✳✶ ❯♥%❡❣✉❧❛$❡❞ ❉✉♦♣♦❧② ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✹✺
✷✳✸✳✷ ❉✉♦♣♦❧② ✇✐$❤ ❘❡❣✉❧❛$❡❞ 1%✐❝❡ ❉✐3❝%✐♠✐♥❛$✐♦♥ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✹✾
✷✳✸✳✸ ❊♥$%❛♥$ ♦% ■♥❝✉♠❜❡♥$ ▼♦♥♦♣♦❧② ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✺✶
✷✳✸✳✹ ❊♥$%② ❙$❛❣❡ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✺✸
✷✳✹ ❲❡❧❢❛%❡ ❛♥❞ 1%✐❝❡ ❉✐3❝%✐♠✐♥❛$✐♦♥ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✺✹
✷✳✹✳✶ 1%✐❝❡ ❉✐3❝%✐♠✐♥❛$✐♦♥ ✐♥ ❖❧✐❣♦♣♦❧② ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✺✺
✷✳✹✳✷ ❊♥$%②✱ 1%✐❝❡ ❉✐3❝%✐♠✐♥❛$✐♦♥ ❛♥❞ ❲❡❧❢❛%❡ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✺✼
✶
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✷ ❈❖◆❚❊◆❚❙
✷✳✺ ❈♦♥❝❧✉)✐♦♥ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✻✵
✸ ❖❢ #❡♥♥✐❡' ❛♥❞ #*♦'♣❡❝.'✿ ❯♥❞❡*'.❛♥❞✐♥❣ ❇❡❤❛✈✐♦✉* ✐♥ #❡♥♥② ❆✉❝.✐♦♥' ✻✸
✸✳✶ ■♥01♦❞✉❝0✐♦♥ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✻✸
✸✳✷ ❉❛0❛ ❛♥❞ ❙0②❧✐)❡❞ ❋❛❝0) ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✻✻
✸✳✸ ❊①♣❡❝0❡❞ ❯0✐❧✐0② ▼♦❞❡❧ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✼✷
✸✳✹ @1♦)♣❡❝0) ❛♥❞ @❡♥♥✐❡) ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✼✼
✸✳✺ ❊)0✐♠❛0✐♦♥ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✽✷
✸✳✻ ❘❡)✉❧0) ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✽✷
✸✳✻✳✶ ❘✐)❦ ❆00✐0✉0❡) ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✽✸
✸✳✻✳✷ @1♦)♣❡❝0 ❚❤❡♦1② ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✽✹
✸✳✼ ❯♥❞❡1)0❛♥❞✐♥❣ @❡♥♥② ❆✉❝0✐♦♥)❄ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✽✻
✸✳✽ ❈♦♥❝❧✉)✐♦♥ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✳ ✽✽
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❆❜"#$❛❝#
❚❤✐# $❤❡#✐# ❝♦❧❧❡❝$# $❤)❡❡ ♣❛♣❡)# ✐♥ ✐♥❞✉#$)✐❛❧ ♦)❣❛♥✐③❛$✐♦♥ ❛♥❞ ❜❡❤❛✈✐♦✉)✱ ✉♥✐✜❡❞ ✐♥ $❤❡✐)
❢♦❝✉# ♦♥ $❤❡ ✏❞✐❣✐$❛❧ ❡❝♦♥♦♠②✑✳ ❚❤❡ ✜)#$ $✇♦ ♣❛♣❡)# #$✉❞② ♠❛)❦❡$# ❢♦) #✉❜#❝)✐♣$✐♦♥ ❣♦♦❞#✱
✇❤✐❝❤ ✕ ❜② $❤❡ ♥❛$✉)❡ ♦❢ $❤❡ ❝♦♥$)❛❝$ ✕ ❛❧❧♦✇ ❢♦) )✐❝❤ ❢♦)♠# ♦❢ ❜❡❤❛✈✐♦✉)✕❜❛#❡❞ ♣)✐❝❡ ❞✐#✲
❝)✐♠✐♥❛$✐♦♥ ❜❡$✇❡❡♥ ❝♦♥#✉♠❡)#✳ ❚❤❡ $❤✐)❞ ♣❛♣❡) ✐♥✈❡#$✐❣❛$❡# ❛ ♥♦✈❡❧ ❛♥❞ ❝♦♠♣❧❡① ❛✉❝$✐♦♥
♠❡❝❤❛♥✐#♠ ✉#❡❞ ✐♥ ♦♥❧✐♥❡ ❛✉❝$✐♦♥#✳
❛②✐♥❣ ❈♦♥(✉♠❡,( -♦ ❙-❛②✿ ❘❡-❡♥-✐♦♥ ,✐❝✐♥❣ ❛♥❞ ▼❛,❦❡- ❈♦♠♣❡-✐-✐♦♥ #$✉❞✐❡# $❤❡ ❝♦♠✲
♣❡$✐$✐✈❡ ❡✛❡❝$ ♦❢ )❡$❡♥$✐♦♥ ❞✐#❝♦✉♥$#✳ ❚❤❡#❡ ❞✐#❝♦✉♥$# ❛)❡ ❣✐✈❡♥ $♦ ❝♦♥#✉♠❡)# ✐❞❡♥$✐✜❡❞ ❜②
$❤❡✐) ❝✉))❡♥$ ✜)♠ ❛# ❝♦♥#✐❞❡)✐♥❣ ❛ #✇✐$❝❤ $♦ ❛ ♥❡✇ ♣)♦✈✐❞❡)✳ ■♥ $❡❧❡❝♦♠♠✉♥❝❛$✐♦♥# ♠❛)❦❡$#✱
✜)♠# ♠❛② ♦❜$❛✐♥ #✉❝❤ ✐♥❢♦)♠❛$✐♦♥ ✇❤❡♥ ❝♦♥#✉♠❡)# ✐♥✐$✐❛$❡ ❛ #✇✐$❝❤✐♥❣ ♣)♦❝❡##✳ ■ ♠♦❞❡❧
)❡$❡♥$✐♦♥ ❛# ❛ #❝)❡❡♥✐♥❣ ❞❡✈✐❝❡ ✐♥ ❛ $✇♦✕♣❡)✐♦❞ ♠♦❞❡❧ ♦❢ #✇✐$❝❤✐♥❣ ❝♦#$ ❛♥❞ ❜❡❤❛✈✐♦✉)✕❜❛#❡❞
♣)✐❝❡ ❞✐#❝)✐♠✐♥❛$✐♦♥✳ ■♥ $❤❡ #❡❝♦♥❞ ♣❡)✐♦❞✱ ✜)♠# ♦✛❡) ❞✐#❝♦✉♥$# $♦ #✇✐$❝❤✐♥❣ ❝♦♥#✉♠❡)#✱ ❜✉$
✉#❡ )❡$❡♥$✐♦♥ $♦ ❞❡❢❡♥❞ $❤❡ ❝♦♥#✉♠❡) ❛❣❛✐♥#$ ❝♦♠♣❡$✐♥❣ ✜)♠#✳ ❚❤✐# ❧❡❛❞# $♦ ✜❡)❝❡ ♣)✐❝❡
❝♦♠♣❡$✐$✐♦♥✱ ❝❛✉#✐♥❣ ❛❧❧ ♣)✐❝❡# $♦ ❢❛❧❧❀ ✜)#$ ♣❡)✐♦❞ ♣)✐❝❡# ❣❡♥❡)❛❧❧② )✐#❡✱ ❜✉$ ❞♦♥✬$ ♦✛#❡$ $❤❡
♣)♦✲❝♦♠♣❡$✐$✐✈❡ ❡✛❡❝$✳ ❘❡$❡♥$✐♦♥ )❡❞✉❝❡# #♦❝✐❛❧ ✇❡❧❢❛)❡ ❜✉$ )❛✐#❡# ❝♦♥#✉♠❡) #✉)♣❧✉#✳
❍✐(-♦,②✕❇❛(❡❞ ,✐❝❡ ❉✐(❝,✐♠✐♥❛-✐♦♥ ❛♥❞ ❲❡❧❢❛,❡ ✐♥ ❛ ●,♦✇✐♥❣ ▼❛,❦❡- #$✉❞✐❡# #❡$$✐♥❣# ✇❤❡)❡
❛♥ ✐♥❝✉♠❜❡♥$✱ ✇❤♦ ❤❛# ❛ ❞♦♠✐♥❛♥$ ♠❛)❦❡$ #❤❛)❡ ❛♠♦♥❣ ♦❧❞ ❝♦♥#✉♠❡)#✱ ❢❛❝❡# ♣♦$❡♥$✐❛❧ ❡♥✲
$)②✳ ❚❤❡ ✐♥❝✉♠❜❡♥$ ✐# ♣)♦$❡❝$❡❞ ❜② #✇✐$❝❤✐♥❣ ❝♦#$# ✐♥ $❤✐# #❡❣♠❡♥$✱ ❛♥❞ ❝❛♥ ♦❜#❡)✈❡ $❤❡
♣✉)❝❤❛#❡ #$❛$✉# ♦❢ ❛❧❧ ❝♦♥#✉♠❡)# ✕ ❤❡♥❝❡✱ $❤✐)❞✕❞❡❣)❡❡ ♣)✐❝❡ ❞✐#❝)✐♠✐♥❛$✐♦♥ ✐# ❢❡❛#✐❜❧❡✳ ❚❤❡
❡♥$)❛♥$ ♠❛② ✐♥❞✉❝❡ ❝♦♥#✉♠❡)# $♦ )❡✈❡❛❧ $❤❡✐) ♣✉)❝❤❛#❡ ❤✐#$♦)② $❤)♦✉❣❤ #✉✐$❛❜❧❡ ♦✛❡)#✳ ❯♥❞❡)
❞✉♦♣♦❧②✱ ♣)✐❝❡ ❞✐#❝)✐♠✐♥❛$✐♦♥ ❧❡❛❞# $♦ ❧♦✇❡) ♣)✐❝❡# ❛♥❞ ♣)♦✜$#✱ ❜✉$ ❛❧#♦ ❧♦✇❡)# ❝♦♥#✉♠❡)# #✉)✲
♣❧✉# ❞✉❡ $♦ ❜)❛♥❞ ♠✐#❛❧❧♦❝❛$✐♦♥ ❛♥❞ ✐♥❡✣❝✐❡♥$ #✇✐$❝❤✐♥❣✳ ❚❤✉#✱ ❜❛♥♥✐♥❣ ♣)✐❝❡ ❞✐#❝)✐♠✐♥❛$✐♦♥
✐♥❝)❡❛#❡# ✇❡❧❢❛)❡✳ ❍♦✇❡✈❡)✱ )❡❣✉❧❛$✐♦♥ ♠❛② ❛❧#♦ ❝❛✉#❡ ❡♥$)② ✐♥$♦ ❛♥ ♦$❤❡)✇✐#❡ ♠♦♥♦♣♦❧✐#❡❞
✐♥❞✉#$)②❀ $❤✐# ♦❝❝✉))# ♦♥❧② ✇❤❡♥ ❡♥$)② ✐# ✐♥❡✣❝✐❡♥$❀ $❤✉# ♦♣$✐♠❛❧ ♣♦❧✐❝② ❝❛❧❧# ❢♦) ❜❛♥# ♦♥
♣)✐❝❡ ❞✐#❝)✐♠✐♥❛$✐♦♥ ✉♥❧❡## $❤❡② ❝❛✉#❡ ❡♥$)②✳
❖❢ ❡♥♥✐❡( ❛♥❞ ,♦(♣❡❝-(✿ ❯♥❞❡,(-❛♥❞✐♥❣ ❇❡❤❛✈✐♦✉, ✐♥ ❡♥♥② ❆✉❝-✐♦♥( #$✉❞✐❡# ❛ ♥♦✈❡❧$②
✸
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✹ ❈❖◆❚❊◆❚❙
!②♣❡ ♦❢ ❛(❝❡♥❞✐♥❣ ❛✉❝!✐♦♥( ✇❤❡1❡ ❜✐❞❞❡1( ♣❛② ❛ ❢❡❡ ❢♦1 ❡❛❝❤ ❜✐❞ !❤❡② ♣❧❛❝❡✳ ❚❤❡ ❧❛(! ❜✐❞❞❡1
✇✐♥( !❤❡ ❛✉❝!✐♦♥ ✕ !❤✉( ❛ ❜✐❞ ✐( ❡((❡♥!✐❛❧❧② ❛ ❜❡! ♦♥ ❜❡✐♥❣ !❤❡ ❧❛(! ❜✐❞❞❡1✱ ❛❞❞✐♥❣ ❛ ❞✐♠❡♥(✐♦♥
♦❢ ❣❛♠❜❧✐♥❣ !♦ !❤❡ ❛✉❝!✐♦♥✳ ❆❧(♦✱ ❧✐❦❡ ❧♦!!❡1✐❡( ❛♥❞ (❧♦! ♠❛❝❤✐♥❡(✱ !❤❡(❡ ❛✉❝!✐♦♥( ❛1❡ ♦❢!❡♥✱
❜✉! ♥♦! ❛❧✇❛②(✱ ❤✐❣❤❧② ♣1♦✜!❛❜❧❡ ❢♦1 !❤❡ (❡❧❧❡1✳ ❚❤❡ ♣❛♣❡1 !❤❡♥ ❛♣♣❧✐❡( ♣1♦(♣❡❝! !❤❡♦1② !♦
♣❡♥♥② ❛✉❝!✐♦♥(✱ ♦❜!❛✐♥✐♥❣ ❡(!✐♠❛!❡( ❢♦1 !❤❡ ♣1♦❜❛❜✐❧✐!② ✇❡✐❣❤!✐♥❣ ❛♥❞ ✈❛❧✉❡ ❢✉♥❝!✐♦♥( !❤❛!
❛1❡ ✐♥ ❧✐♥ ✇✐!❤ !❤❡ ❧✐!❡1❛!✉1❡✳ ▼♦1❡♦✈❡1✱ !❤❡ ♠♦❞❡❧ ❝❛♥ ✜! (❡✈❡1❛❧ (!②❧✐(❡❞ ❢❛❝!( ♦❢ ❜✐❞❞❡1
❜❡❤❛✈✐♦✉1 !❤❛! ❛1❡ ♥♦! ❡①♣❧❛✐♥❡❞ ❜② !❤❡ ❛❧!❡1♥❛!✐✈❡ ❤②♣♦!❤❡(✐( ♦❢ 1✐(❦✕❧♦✈✐♥❣ ❜✐❞❞❡1(✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✺
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
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Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✽ ❛②✐♥❣ ❈♦♥(✉♠❡,( -♦ ❙-❛②✿ ❘❡-❡♥-✐♦♥ ,✐❝✐♥❣ ❛♥❞ ▼❛,❦❡- ❈♦♠♣❡-✐-✐♦♥
!❡❝❡✐✈❡ ❛♥ ♦✛❡! ♦❢ ❛ !❡❞✉❝❡❞ ♠♦♥.❤❧② ❢❡❡ .♦❣❡.❤❡! ✇✐.❤ .❤❡ ♣♦!.❛❜✐❧✐.② ❝♦❞❡✳ ❲❤❡♥ .!②✐♥❣ .♦
❝❛♥❝❡❧ ❛ ❝❛❜❧❡ ❚❱ :✉❜:❝!✐♣.✐♦♥✱ ❢!❡❡ ❡①.!❛ ❝❤❛♥♥❡❧: ♠❛② ♦✛❡!❡❞ .♦ ♣❡!:✉❛❞❡ .❤❡ ❝♦♥:✉♠❡! .♦
:.❛②✳ ❈♦♥:✉♠❡!: ❝❛❧❧✐♥❣ .♦ ❝❛♥❝❡❧ ❛ ❝!❡❞✐. ❝❛!❞ ♠❛② ❜❡ ♦✛❡!❡❞ ❡①.!❛ ❛✐! ♠✐❧❡: ✐❢ .❤❡② :.❛②✳
■♥ .❤❡ ♠❛!❦❡.✐♥❣ ❧✐.❡!❛.✉!❡✱ .❤❡ ❞❡:✐❣♥ ♦❢ !❡.❡♥.✐♦♥ ♦✛❡!: ❤❛: ❜❡❡♥ :.✉❞✐❡❞ :✐♥❝❡ ❛. ❧❡❛:.
❘♦:❡♥❜❡!❣ ❛♥❞ ❈③❡♣✐❡❧ ✭✶✾✽✹✮✳
❈♦♠♠♦♥ .♦ .❤❡ ❡①❛♠♣❧❡: ✇❡ ❤❛✈❡ ❞✐:❝✉::❡❞ ✐: .❤❛. ❝♦♥:✉♠❡!: ♥❡❡❞ .♦ ❛❝.✐✈❡❧② ❝♦♥.❛❝.
.❤❡✐! ✜!♠ .♦ H✉❛❧✐❢② ❢♦! ❛ !❡.❡♥.✐♦♥ ♦✛❡!✳ ❉♦✐♥❣ :♦ !❡H✉✐!❡: ❡✛♦!.✱ ❜✉. ❛!❣✉❛❜❧② ❧❡:: :♦
.❤❛♥ :✇✐.❝❤✐♥❣ ❡♥.✐!❡❧② .♦ ❛ ❝♦♠♣❡.✐.♦!✳ ❚❤✐: :✉❣❣❡:.: .❤❛. !❡.❡♥.✐♦♥ ♦✛❡!: ❝❛♥ ❜❡ ✉:❡❞ ❢♦!
❝"❡❡♥✐♥❣ ♦❢ ❝♦♥:✉♠❡!:✿ ❛ ✜!♠ :❡.: .❤❡ !❡.❡♥.✐♦♥ ♣!✐❝❡ .♦ ❦❡❡♣ :♦♠❡ ❝♦♥:✉♠❡!: ✇✐.❤ !❡❧❛.✐✈❡❧②
❧♦✇ :✇✐.❝❤✐♥❣ ❝♦:.✱ ✇❤♦ ✇♦✉❧❞ ♦.❤❡!✇✐:❡ ❤❛✈❡ ♠♦✈❡❞ .♦ ❛ ❝♦♠♣❡.✐.♦!✱ ❜❛❧❛♥❝❡❞ ❛❣❛✐♥:. .❤❡
❝♦:. ♦❢ ♠❛!❣✐♥❛❧ ❤✐❣❤✕❝♦:. ❝♦♥:✉♠❡!: ♠♦✈✐♥❣ ❢!♦♠ ❧♦②❛❧ ♣!✐❝✐♥❣ .♦ !❡.❡♥.✐♦♥✳ ❚❤✐: ✐♥.!♦❞✉❝❡:
✐♥❝❡♥'✐✈❡✕❝♦♠♣❛'✐❜❧❡✱ ♦! ❡❝♦♥❞✕❞❡❣"❡❡ ♣"✐❝❡ ❞✐ ❝"✐♠✐♥❛'✐♦♥ ❙.♦❧❡ ✭✷✵✵✼✮ ✐♥.♦ ❛♥ ❡♥✈✐!♦♥♠❡♥.
✇❤❡!❡ ✜!♠: ❛❧!❡❛❞② ❞✐:❝!✐♠✐♥❛.❡ ❜❛:❡❞ ♦♥ .❤❡ ♦❜:❡!✈❛❜❧❡ ♣✉!❝❤❛:❡ :.❛.✉:✱ ✐✳❡✳ '❤✐"❞✕❞❡❣"❡❡
♣"✐❝❡ ❞✐ ❝"✐♠✐♥❛'✐♦♥✳
❍♦✇ !❡.❡♥.✐♦♥ ❛✛❡❝.: ♠❛!❦❡. ❝♦♠♣❡.✐.✐♦♥ ✐: .❤✉: ❛♥ ✐♠♣♦!.❛♥. ❝♦♥❝❡!♥✱ ❡:♣❡❝✐❛❧❧② ✐♥
!❡❣✉❧❛.❡❞ ✐♥❞✉:.!✐❡:✱ ✇❤❡!❡ ✐♥:.!✉♠❡♥.: ♠❛② ❜❡ ❛✈❛✐❧❛❜❧❡ .♦ ❝♦♥:.!❛✐♥ :✉❝❤ :.!❛.❡❣✐❡:✳ ❉♦
!❡.❡♥.✐♦♥ ♦✛❡!: ✏❞✉❧❧ ✐♥❝❡♥.✐✈❡: ♦❢ ♣!♦✈✐❞❡!: .♦ ❝♦♠♣❡.❡ ❢♦! !✐✈❛❧✬: ❝✉:.♦♠❡!:✑ ✭❖❢❝♦♠✱ ✷✵✶✵✮❄
❉♦❡: !❡.❡♥.✐♦♥ ❧❡❛❞ .♦ ❣!❡❛.❡! ♣!✐❝❡ ❞✐:♣❡!:✐♦♥✱ ❛♥❞ ❞♦ ❝♦♥:✉♠❡!: ✇✐.❤ ❤✐❣❤ :✇✐.❝❤✐♥❣ ❝♦:.
❧♦:❡ ♦✉.❄ ❙✐♥❝❡ !❡.❡♥.✐♦♥ ❝❛♥ ♦♥❧② ❜❡ ♣!❛❝.✐❝❡❞ ♦♥❝❡ ❛ ❝♦♥:✉♠❡! ❤❛: ❜❡❡♥ ✐♥✐.✐❛❧❧② ❛❝H✉✐!❡❞✱
❛!❡ ❞②♥❛♠✐❝ ❝♦♥:✐❞❡!❛.✐♦♥: ✕ .❤❡ ❝♦♠♣❡.✐.✐♦♥ ❢♦! ♠❛!❦❡. :❤❛!❡ ✕ ✐♠♣♦!.❛♥. ✐♥ .❤❡ ❛♥❛❧②:✐:❄
❲❤♦ ✇♦✉❧❞ ❜❡♥❡✜. ❢!♦♠ ❛ ♣♦::✐❜❧❡ ❜❛♥ ♦♥ !❡.❡♥.✐♦♥ ♣!✐❝❡:❄ ❍♦✇ ❞♦❡: .❤❡ ❛❞♦♣.✐♦♥ ♦❢
!❡.❡♥.✐♦♥ :.!❛.❡❣✐❡: ❞❡♣❡♥❞ ♦♥ .❤❡ ✐♥❞✉:.!② :.!✉❝.✉!❡❄
■♥ .❤✐: ♣❛♣❡!✱ ✇❡ ❞❡✈❡❧♦♣ ❛ .✇♦✕♣❡!✐♦❞ ♣!✐❝❡ ❝♦♠♣❡.✐.✐♦♥ ♠♦❞❡❧ .♦ ❛❞❞!❡:: .❤❡:❡ H✉❡:✲
.✐♦♥:✳ ❚✇♦ ♦! ♠♦!❡ ✜!♠: ♣!♦❞✉❝❡ ❛ ❤♦♠♦❣❡♥❡♦✉: ❣♦♦❞✱ ❛♥❞ ❝♦♠♣❡.❡ ❢♦! ♠❛!❦❡. :❤❛!❡ ✐♥
.❤❡ ✜!:. ♣❡!✐♦❞✳ ❚❤❡♥✱ ❝♦♥:✉♠❡!: ❛!❡ ♣!✐✈❛.❡❧② ✐♥❢♦!♠❡❞ ❛❜♦✉. .❤❡✐! :✇✐.❝❤✐♥❣ ❝♦:.❀ ✜!♠:
♦♥❧② ♦❜:❡!✈❡ .❤❡ ❞✐:.!✐❜✉.✐♦♥ ♦❢ ❝♦:.: ✐♥ .❤❡ ♣♦♣✉❧❛.✐♦♥✳ ❚❤❡ ♠♦❞❡❧ ✐: .❤✉: ♦♥❡ ♦❢ ✈❡!.✐❝❛❧
❞✐✛❡!❡♥.✐❛.✐♦♥ ✭❆!♠:.!♦♥❣ ❛♥❞ ❱✐❝❦❡!:✱ ✷✵✵✶✮✿ ✐❢ ❛❧❧ ✜!♠: ✇❡!❡ .♦ ♦✛❡! .❤❡ :❛♠❡ ♣!✐❝❡✱ ❛❧❧
❝♦♥:✉♠❡!: ✇♦✉❧❞ :.❛② ✇✐.❤ .❤❡✐! ❝✉!!❡♥. ✜!♠✳ ▼✐♥❞❢✉❧ ♦❢ .❤✐: ❡♥✈✐!♦♥♠❡♥.✱ ✜!♠: :❡. ♠❛.✉!❡
♠❛!❦❡. ♣!✐❝❡: ❢♦! ❧♦②❛❧ ❛♥❞ !❡.❛✐♥❡❞ ❝♦♥:✉♠❡!:✱ ✇❤✐❝❤ ❛!❡ ❛✈❛✐❧❛❜❧❡ .♦ .❤❡✐! ♦✇♥ ❝♦♥:✉♠❡!
❜❛:❡✱ ❛♥❞ :✇✐.❝❤✐♥❣ ♦✛❡!:✱ ♦♥❧② ❛✈❛✐❧❛❜❧❡ .♦ .❤♦:❡ .❤❛. ♣✉!❝❤❛:❡❞ ❢!♦♠ ❛ ❝♦♠♣❡.✐.♦!✳ ❈♦♥✲
:✉♠❡!: .❤❡♥ ❝❤♦♦:❡ ❛♠♦♥❣ .❤❡ ♦✛❡!: ❛✈❛✐❧❛❜❧❡ .♦ .❤❡♠✱ ✐♥❝✉!!✐♥❣ ❛ ✉.✐❧✐.② ❝♦:. ❡H✉❛❧ .♦ .❤❡✐!
.②♣❡ ✇❤❡♥ :✇✐.❝❤✐♥❣ ✭✏:✇✐.❝❤✐♥❣ ❝♦:.✑✮✱ ♦! ❛ ❢!❛❝.✐♦♥ ♦❢ :❛✐❞ ❝♦:. ✇❤❡♥ ❝❧❛✐♠✐♥❣ !❡.❡♥.✐♦♥
✭✏!❡.❡♥.✐♦♥ ❝♦:.✑✮✳
❖✉! ♠♦❞❡❧ ✐: ❝❧♦:❡❧② !❡❧❛.❡❞ .♦ .❤❡ ❧✐.❡!❛.✉!❡ ♦♥ ❜❡❤❛✈✐♦✉!✕❜❛:❡❞ ♣!✐❝❡ ❞✐:❝!✐♠✐♥❛.✐♦♥
✭❇❇[❉✮✳ ❚❤❡ ❛❞❞✐.✐♦♥ ♦❢ .❤❡ !❡.❡♥.✐♦♥ ♦✛❡! ✐: .❤❡ ❦❡② ✐♥♥♦✈❛.✐♦♥ ♦✈❡! ❚❛②❧♦! ✭✷✵✵✸✮ ❛♥❞
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✶ ✾
❈❤❡♥ ✭✶✾✾✼✮✳ ■♥ +❤✐- ❧✐♥❡ ♦❢ ❧✐+❡1❛+✉1❡✱ ♣1✐❝❡ ❞✐-❝1✐♠✐♥❛+✐♦♥ ✐- ❜❛-❡❞ ♦♥ ✭♦❜-❡1✈❛❜❧❡✮ ♣✉1❝❤❛-❡
-+❛+✉-✳ ❖♥❡ ✐- +❤❡♥ ✐♥+❡1❡-+❡❞ ✐♥ +❤❡ ❞✐✛❡1❡♥❝❡- ✐♥ ♠❛1❦❡+ ♦✉+❝♦♠❡- ✈✐-✲❛✲✈✐- ❛ -✐+✉❛+✐♦♥ ♦❢
✉♥✐❢♦1♠ ♣1✐❝✐♥❣ ✭✐✳❡✳✱ ✜1♠- ♦✛❡1 ❛ -✐♥❣❧❡ ♣1✐❝❡ +♦ ❛❧❧ ❝♦♥-✉♠❡1-✮✳ ❆- +❤❡ -✉1✈❡② ❜② ❋✉❞❡♥❜❡1❣
❡+ ❛❧✳ ✭✷✵✵✻✮ -❤♦✇-✱ +❤❡ ❡✛❡❝+ ♦❢ ❇❇I❉ ✐♥ ❣❡♥❡1❛❧ ✐- ❝♦♠♣❧❡①✳ ■♥ -✐+✉❛+✐♦♥- ✇❤❡1❡ ❛❧❧ ✜1♠- ❛1❡
❛❜❧❡ +♦ ❞✐-❝1✐♠✐♥❛+❡✱ ♦♥❡ ♦❢+❡♥ ✜♥❞- ❛ -✐+✉❛+✐♦♥ ♦❢ ❜❡-+✕1❡-♣♦♥-❡ ❛-②♠♠❡+1② ❈♦1+- ✭✶✾✾✽✮✿ ❢♦1
❛ ❣✐✈❡♥ ✉♥✐❢♦1♠ ♣1✐❝❡ ❜② +❤❡ ♦♣♣♦♥❡♥+✱ ✜1♠- ✇❛♥+ +♦ 1❛✐-❡ ♣1✐❝❡ ❢♦1 ❡①✐-+✐♥❣ ❝♦♥-✉♠❡1- ❛♥❞
❧♦✇❡1 ♣1✐❝❡- ❢♦1 -✇✐+❝❤✐♥❣ ❝♦♥-✉♠❡1-✳ ❚❤❡♥✱ ✏❛❧❧ ♦✉+ ❝♦♠♣❡+✐+✐♦♥✑ ♠❛② ♦❝❝✉1 ✐♥ +❤❡ ♠❛+✉1❡
♠❛1❦❡+✱ ❝❛✉-✐♥❣ ❜♦+❤ ❧♦②❛❧ ❛♥❞ -✇✐+❝❤✐♥❣ ♣1✐❝❡- +♦ ❜❡ ❧♦✇❡1 ✉♥❞❡1 ❇❇I❉ +❤❛♥ ✉♥✐❢♦1♠
♣1✐❝✐♥❣✳ ❚❤❡ ❡✛❡❝+ ✐-✱ ♣❛1+❧② ♦1 ✇❤♦❧❧②✱ ❝♦✉♥+❡1❛❝+❡❞ ✇❤❡♥ ✜1-+ ♣❡1✐♦❞ ❝♦♠♣❡+✐+✐♦♥ ✐- ❛❧❧♦✇❡❞✱
❛- +❤❡ 1❡❞✉❝❡❞ ✈❛❧✉❡ ♦❢ ♠❛1❦❡+ -❤❛1❡ ♠❛❦❡- ❝♦♠♣❡+✐+✐♦♥ ❧❡-- ✜❡1❝❡✳ ■♥ ❛-②♠♠❡+1✐❝ -✐+✉❛+✐♦♥-✱
+❤✐♥❣- ♠❛② ❜❡ ❞✐✛❡1❡♥+✳ ●❡❤1✐❣ ❡+ ❛❧✳ ✭✷✵✶✶✮ ❝♦♥-✐❞❡1- ❛ ♠♦❞❡❧ ✇❤❡1❡ ❛♥ ✐♥❝✉♠❜❡♥+ ❤❛- ❛
❞♦♠✐♥❛♥+ ♣♦-✐+✐♦♥ ❛♥❞ ❝❛♥ ♣1❛❝+✐❝❡ ❇❇I❉✱ ✇❤✐❧❡ ❛♥ ❡♥+1❛♥+ ♠✉-+ ❝❤❛1❣❡ ❛ ✉♥✐❢♦1♠ ♣1✐❝❡✳
❍♦✇❡✈❡1✱ +❤❡ ❡♥+1❛♥+ ✐- ✐♥❞✐✛❡1❡♥+ ♦✈❡1 ❛ ♠♦✈❡ +♦ ✉♥✐❢♦1♠ ♣1✐❝✐♥❣ ❜② +❤❡ ✐♥❝✉♠❜❡♥+✱ -✐♥❝❡
+❤❡ ♣♦+❡♥+✐❛❧ ❜❡♥❡✜+- ❢1♦♠ 1❡❞✉❝❡❞ ❝♦♠♣❡+✐+✐♦♥ ❢♦1 ❧♦②❛❧ ❝♦♥-✉♠❡1- ❛1❡ ♦✛-❡+ ❜② ✜❡1❝❡1
❝♦♠♣❡+✐+✐♦♥ ❢♦1 ♥❡✇ ❝♦♥-✉♠❡1-✳ ■♥ ❈❤❡♥ ❛♥❞ ❩❤❛♥❣ ✭✷✵✵✾✮✱ +❤❡1❡ ✐- ♥♦ ♠❛1❦❡+ ❣1♦✇+❤
❛♥❞ ❤❡♥❝❡ +❤❡ ♣♦--✐❜❧❡ ❡♥+1❛♥+ ✉♥❛♠❜✐❣✉♦✉-❧② ❧♦-❡- ✇❤❡♥ ❇❇I❉ ✐- ❛❧❧♦✇❡❞✳ ❊-+❡✈❡- ✭✷✵✵✾✮
❞❡✈❡❧♦♣- ❛ ♠♦❞❡❧ ✇❤❡1❡ ❝♦♥-✉♠❡1- ♦❜+❛✐♥ ✐♥❢♦1♠❛+✐♦♥ ❢1♦♠ ❛❞✈❡1+✐-✐♥❣ ♦♥❧②✱ ❛♥❞ -❤♦✇- +❤❛+
❇❇I❉ ❝❛♥ ✐♥ -♦♠❡ ❝❛-❡- 1❛✐-❡ ✐♥❞✉-+1② ♣1♦✜+✳
■♥ -❡❝♦♥❞✕❞❡❣1❡❡ ♣1✐❝❡ ❞✐-❝1✐♠✐♥❛+✐♦♥✱ ✜1♠- ♦✛❡1 ❛ ♠❡♥✉ ♦❢ ♣1✐❝❡ ❛♥❞ V✉❛♥+✐+②✴V✉❛❧✐+②
♣❛✐1- +♦ ❝♦♥-✉♠❡1- ✭▼❛-❦✐♥ ❛♥❞ ❘✐❧❡② ✭✶✾✽✹✮ ✐- ❡❛1❧② -+✉❞②❀ ▼❝❆❢❡❡ ✭✷✵✵✽✮ ♣1♦✈✐❞❡- ❛
-✉1✈❡② ❛♥❞ ❞✐-❝✉--❡- ❛♥+✐✕+1✉-+ ✐♠♣❧✐❝❛+✐♦♥-✮✳ ❈♦♥-✉♠❡1- +❤❡♥ -❡❧❢✕-❡❧❡❝+ +❤❡ ❜✉♥❞❧❡ +❤❡②
♣1❡❢❡1 +❤❡ ♠♦-+✱ -♦ ❜♦+❤ ♣❛1+✐❝✐♣❛+✐♦♥ ❛♥❞ ✐♥❝❡♥+✐✈❡ ❝♦♠♣❛+✐❜✐❧✐+② ❝♦♥-+1❛✐♥+- ❛♣♣❧②✳ ❲✐+❤
❛ ❝♦♥+✐♥✉✉♠ ♦❢ +②♣❡-✱ +❤✐- ♠❡❛♥- ✜1♠- ♦✛❡1 ❛ ❝♦♥+✐♥✉✉♠ ♦❢ ♠❡♥✉-✳ ■♥ ❝♦♥+1❛-+✱ ✐♥ +❤❡
1❡+❡♥+✐♦♥ ♠♦❞❡❧✱ ✜1♠- ❞♦ ♥♦+ ❞✐-❝1✐♠✐♥❛+❡ ♦♥ V✉❛❧✐+② ❜✉+ ♦♥❧② ♦♥ +❤❡ -✐❣♥❛❧ ♦❢ ✇❤❡+❤❡1 ❛
❝♦♥-✉♠❡1 +1✐❡- +♦ ❝❛♥❝❡❧ ❛ ❝♦♥+1❛❝+✴1❡V✉❡-+ ❛ -✇✐+❝❤✐♥❣ ❝♦❞❡✳ ❚❤✉-✱ ❡✈❡♥ ✇✐+❤ ❛ ❝♦♥+✐♥✉✉♠
♦❢ +②♣❡-✱ +❤❡ ♥✉♠❜❡1 ♦❢ ♠❡♥✉ ✐+❡♠- ✐- ❧✐♠✐+❡❞ +♦ +✇♦✳ ❆- ❡♠♣❤❛-✐-❡❞ ❜② ❙♣✉❧❜❡1 ✭✶✾✽✾✮✱
♣1✐❝❡ ❞✐-❝1✐♠✐♥❛+✐♦♥ +1❛❞❡- ♦✛ ❡①+1❛✕♠❛1❣✐♥❛❧ ❣❛✐♥- ✭❢1♦♠ ❛++1❛❝+✐♥❣ ♥❡✇ ❝♦♥-✉♠❡1-✮ ✈❡1-✉-
✐♥❢1❛✕♠❛1❣✐♥❛❧ ❧♦--❡-❀ ❜✉+ ✐♥ ❛ ❝♦♠♣❡+✐+✐✈❡ -❡++✐♥❣✱ +❤❡ ♣❛1+✐❝✐♣❛+✐♦♥ ❝♦♥-+1❛✐♥+ ❢❛❝❡❞ ❜② ❡❛❝❤
✜1♠ ✐- ❞❡+❡1♠✐♥❡❞ ❜② ❡V✉✐❧✐❜1✐✉♠✱ 1❛+❤❡1 +❤❛♥ ❡①♦❣❡♥♦✉-❧②✳
❲❡ ❛1❡ ❛✇❛1❡ ♦❢ ♦♥❡ -✐♠✉❧+❛♥❡♦✉- ♣❛♣❡1 -+✉❞②✐♥❣ 1❡+❡♥+✐♦♥✱ ❊-+❡✈❡- ✭✷✵✶✷✮✳ ■♥ +❤✐- ♣❛♣❡1✱
+❤❡ ♣1♦❞✉❝+ ✐- ❤❡+❡1♦❣❡♥❡♦✉- ❞✉❡ +♦ ❜1❛♥❞ ♣1❡❢❡1❡♥❝❡✳ ❈♦♥-✉♠❡1- ❤❛✈❡ ❛ ✜①❡❞ -✇✐+❝❤✐♥❣ ❝♦-+✱
❛♥❞ ❝1✉❝✐❛❧❧②✱ ❞♦ ♥♦+ ❝❧❛✐♠ 1❡+❡♥+✐♦♥ -+1❛+❡❣✐❝❛❧❧②✳ ❍❡♥❝❡ +❤❡ ❞✐♠❡♥-✐♦♥ ♦❢ -❡❝♦♥❞✕❞❡❣1❡❡
♣1✐❝❡ ❞✐-❝1✐♠✐♥❛+✐♦♥ ✐- ❛❜-❡♥+✱ ❛♥❞ ✐♥ ❝♦♥+1❛-+ +♦ ♦✉1 ♠♦❞❡❧✱ ♣1✐❝❡- ❢♦1 ❧♦②❛❧ ❝♦♥-✉♠❡1- 1✐-❡
✐♥ +❤❡ ♠❛+✉1❡ ♠❛1❦❡+✳ ▼♦1❡♦✈❡1✱ ❞✉❡ +♦ ❧❛❝❦ ♦❢ ❝♦-+ ♦❢ ❝❧❛✐♠✐♥❣ 1❡+❡♥+✐♦♥✱ +❤❡ ❊-+❡✈❡-
♠♦❞❡❧ ♣1❡❞✐❝+- ❛ -♦❝✐❛❧ ✇❡❧❢❛1❡ ❢1♦♠ 1❡+❡♥+✐♦♥❀ ❛- ✐♥ +❤❡ ♣1❡-❡♥+ ♣❛♣❡1✱ 1❡+❡♥+✐♦♥ 1❡❞✉❝❡-
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✶✵ ❛②✐♥❣ ❈♦♥(✉♠❡,( -♦ ❙-❛②✿ ❘❡-❡♥-✐♦♥ ,✐❝✐♥❣ ❛♥❞ ▼❛,❦❡- ❈♦♠♣❡-✐-✐♦♥
✜#♠ ♣#♦✜'(✳
❚❤❡ ♣❛♣❡# ♣#♦❝❡❡❞( ❛( ❢♦❧❧♦✇(✳ ❙❡❝'✐♦♥ ✶✳✷ ♣#❡(❡♥'( ❛ ❜#✐❡❢ ❝❛(❡ ('✉❞② ❢#♦♠ '❤❡ '❡❧❡❝♦♠(
✐♥❞✉('#②✱ ❞❡(❝#✐❜✐♥❣ '❤❡ ♠❛♥♥❡# ✐♥ ✇❤✐❝❤ #❡'❡♥'✐♦♥ ♦✛❡#( ❛#❡ ♠❛❞❡ ❛♥❞ '❤❡ ❝✉##❡♥' #❡❣✉❧❛'♦#②
❝♦♥❝❡#♥(✳ ■♥ (❡❝'✐♦♥ ✶✳✸✱ ✇❡ ♣#❡(❡♥' '❤❡ ❢♦#♠❛❧ ♠♦❞❡❧ ❛♥❞ ❝♦♥❞✉❝' ❛♥ ❡?✉✐❧✐❜#✐✉♠ ❛♥❛❧②(✐( ✐♥
(❡❝'✐♦♥ ✶✳✹✳ ❲❡ ❞✐(❝✉(( ❤♦✇ '❤❡ ❛❜✐❧✐'② ♦❢ ✜#♠( '♦ ♠❛❦❡ #❡'❡♥'✐♦♥ ♦✛❡#( ❛✛❡❝'( ❝♦♠♣❡'✐'✐♦♥
❝♦♠♣❛#❡❞ '♦ '❤❡ ❜❡♥❝❤♠❛#❦ ♦❢ ❇❇D❉ ✇✐'❤♦✉' #❡'❡♥'✐♦♥ ✐♥ (❡❝'✐♦♥ ✶✳✺✱ ❛♥❞ ❛❧(♦ ❝♦♥❞✉❝'
❝♦♠♣❛#❛'✐✈❡ ('❛'✐❝( ♦♥ '❤❡ ❝♦('✱ α✱ ♦❢ ❝❧❛✐♠✐♥❣ #❡'❡♥'✐♦♥✳ ❲❡❧❢❛#❡ ✐♠♣❧✐❝❛'✐♦♥( ❛#❡ ❞✐(❝✉((❡❞
✐♥ ✶✳✻✳ ■♥ (❡❝'✐♦♥ ✶✳✼✱ ✇❡ ♣#♦✈✐❞❡ (♦♠❡ ❡①'❡♥(✐♦♥( '♦ '❤❡ ❛#❣✉♠❡♥'✳ ❋✐♥❛❧❧②✱ (❡❝'✐♦♥ ✶✳✽
❝♦♥❝❧✉❞❡(✳
✶✳✷ ❙✇✐&❝❤✐♥❣ +,♦❝❡//❡/ ❛♥❞ ❘❡&❡♥&✐♦♥ +,✐❝✐♥❣
❚❤❡ ❧✐'❡#❛'✉#❡ '②♣✐❝❛❧❧② '❛❦❡( '❤❡ ❡①✐('❡♥❝❡ ♦❢ (✇✐'❝❤✐♥❣ ❝♦('( ❛( ❡①♦❣❡♥♦✉(❧② ❣✐✈❡♥ ❛♥❞ ♣❛②(
(❝❛♥' ❛''❡♥'✐♦♥ '♦ '❤❡ ♣#♦❝❡(( '❤#♦✉❣❤ ✇❤✐❝❤ ❝♦♥(✉♠❡#( (✇✐'❝❤✳ ❨❡' '❤✐( ♣#♦❝❡(( ♠❛② ♠❛''❡#✱
❜❡❝❛✉(❡ ✜#♠( ♠❛② ❛❝?✉✐#❡ ✐♥❢♦#♠❛'✐♦♥ ♦♥ '❤❡✐# ❝♦♥(✉♠❡#( ✐♥ '❤❡ ♣#♦❝❡((✳
❖❢❝♦♠ ✭✷✵✶✵✮ ♣#♦✈✐❞❡( ❛ ✉(❡❢✉❧ '❛①♦♥♦♠② ♦❢ (✇✐'❝❤✐♥❣ ♣#♦❝❡((❡(✳ ❋✐#('✱ ❡(♣❡❝✐❛❧❧② ✐♥
✉♥#❡❣✉❧❛'❡❞ ✐♥❞✉('#✐❡(✱ '❤❡#❡ ♠❛② ❜❡ ❛ (✐♠♣❧❡ ✏❝❡❛(❡ ❛♥❞ #❡✕♣#♦✈✐❞❡✑ ✭❈✫❘✮ #❡❣✐♠❡ ✐♥ ♣❧❛❝❡✳
❈♦♥(✉♠❡#( ❞❡'❡#♠✐♥❡ '❤❡ ♦#❞❡# ✐♥ ✇❤✐❝❤ '❤❡② ❝❛♥❝❡❧ ❛♥ ❡①✐('✐♥❣ ❝♦♥'#❛❝' ❛♥❞ (✐❣♥ ❛ ♥❡✇ ♦♥❡✳
■❢ ❛ ♥❡✇ ❝♦♥'#❛❝' ✐( ❛❧#❡❛❞② (✐❣♥❡❞✱ #❡'❡♥'✐♦♥ ✐( ❣❡♥❡#❛❧❧② ❝♦♥(✐❞❡#❡❞ ✐♥❢❡❛(✐❜❧❡ ❛( ♠✐♥✐♠✉♠
❝♦♥'#❛❝' ♣❡#✐♦❞( ❡'❝✳ ❛❧#❡❛❞② ❛♣♣❧② ✇✐'❤ '❤❡ ♥❡✇ ♣#♦✈✐❞❡#❀ ❤♦✇❡✈❡#✱ ✇❤❡♥ '❤❡ ❝♦♥(✉♠❡#
(❡♥❞( ❛ ❝❛♥❝❡❧❧❛'✐♦♥ ♥♦'✐❝❡ '♦ '❤❡ ❡①✐('✐♥❣ ✜#♠ ❛❤❡❛❞ ♦❢ ❛ ♥❡✇ ❝♦♥'#❛❝' ❜❡✐♥❣ (✐❣♥❡❞ ✕ ❡✳❣✳
❞✉❡ '♦ ♥♦'✐❝❡ ♣❡#✐♦❞( ✕ #❡'❡♥'✐♦♥ ♦✛❡#( ❛#❡ ♣♦((✐❜❧❡ ✐♥ (✉❝❤ ❛ ❢#❛♠❡✇♦#❦✳
■♥ #❡❣✉❧❛'❡❞ ✐♥❞✉('#✐❡(✱ '❤❡ ❞❡(✐❣♥ ♦❢ '❤❡ (✇✐'❝❤✐♥❣ ♣#♦❝❡(( ❞❡'❡#♠✐♥❡( ✇❤❡'❤❡# #❡'❡♥'✐♦♥
✐( ❢❡❛(✐❜❧❡✳ ❯♥❞❡# ▲♦"✐♥❣✕'(♦✈✐❞❡( ▲❡❞ ✭▲D▲✮ ♣#♦❝❡((❡(✱ ❝♦♥(✉♠❡#( ❝♦♥'❛❝' '❤❡✐# ❡①✐('✐♥❣
♣#♦✈✐❞❡# '♦ ♦❜'❛✐♥ ❛ ❝♦❞❡ ✭❦♥♦✇♥ ❛( ✏♣♦#'✐♥❣ ❛✉'❤♦#✐③❛'✐♦♥ ❝♦❞❡(✑✱ ✏♠✐❣#❛'✐♦♥( ❛✉'❤♦#✐③❛'✐♦♥
❝♦❞❡✑ ❡'❝✳✮ ✇❤✐❝❤ ❛❧❧♦✇( '❤❡ ♥❡✇ ♣#♦✈✐❞❡# '♦ ✐♥✐'✐❛'❡ ♥✉♠❜❡# ♣♦#'❛❜✐❧✐'②✳ ❍♦✇❡✈❡#✱ ❛' '❤❡
'✐♠❡ ♦❢ '❤❡ ❝♦❞❡ #❡?✉❡('✱ ♥♦ ♥❡✇ ❝♦♥'#❛❝' ✐( ②❡' (✐❣♥❡❞✱ ❛♥❞ '❤❡ ♣#♦✈✐❞❡# ❛' #✐(❦ ♦❢ ❧♦(✐♥❣ '❤❡
❝♦♥(✉♠❡# ♠❛② ♠❛❦❡ ❛ #❡'❡♥'✐♦♥ ♦✛❡#✳ ■♥ ♣#❛❝'✐❝❡✱ #❡'❡♥'✐♦♥ ♦✛❡#( ♠❛② ❜❡ (❡♥' ❛✉'♦♠❛'✐❝❛❧❧②
'❤#♦✉❣❤ ❛ '❡①' ♠❡((❛❣❡ ♦# ❛❢'❡# ❛ '❡❧❡♣❤♦♥❡ ❝♦♥✈❡#(❛'✐♦♥❀ '❤❡ #❡'❡♥'✐♦♥ ♦✛❡#( ❛#❡ ♥♦' ♣✉❜❧✐❝❧②
❛❞✈❡#'✐(❡❞✱ (♦ ❧✐''❧❡ (②('❡♠❛'✐❝ ❞❛'❛ ✐( ❛✈❛✐❧❛❜❧❡ ❛❜♦✉' '❤❡♠✳ ❖♥❡ ♠❛② ❤♦✇❡✈❡# ✜♥❞ (♦♠❡
❞✐(❝✉((✐♦♥( ♦♥ '❤❡ '♦♣✐❝ ✐♥ ♦♥❧✐♥❡ ❝♦♥(✉♠❡# ❢♦#✉♠(❀ '❤❡ ❜#♦❛❞ ♣✐❝'✉#❡ ✐( '❤❛' #❡'❡♥'✐♦♥
❞✐(❝♦✉♥'( ❝❛♥ ❜❡ (✉❜('❛♥'✐❛❧✳
❲✐'❤ ❛ ●❛✐♥✐♥❣✕'(♦✈✐❞❡( ▲❡❞ ✭●D▲✮ (✇✐'❝❤✐♥❣ #❡❣✐♠❡✱ '❤❡ ❝♦♥(✉♠❡# ✜♥❛❧✐(❡( ❛ ❝♦♥'#❛❝'
✇✐'❤ '❤❡ ♥❡✇ ♣#♦✈✐❞❡# ❜❡❢♦#❡ '❤❡ ❧♦(✐♥❣ ♣#♦✈✐❞❡# ✐( ❛❞✈✐(❡❞ '❤❛' ❛ (✇✐'❝❤ ✐( ✐♥ ♣#♦❝❡((❀ ❛'
'❤❡ '✐♠❡ '❤❡ ❡✳❣✳ ♥✉♠❜❡# ♣♦#'❛❜✐❧✐'② ✐( ✐♥✐'✐❛'❡❞✱ '❤❡#❡ ✐( ♥♦ ♠♦#❡ (❝♦♣❡ ❢♦# ❛ #❡'❡♥'✐♦♥ ♦✛❡#
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✶ ✶✶
✭❡①❛♠♣❧❡( ✐♥❝❧✉❞❡ .❤❡ ✏♥♦.✐❝❡ ♦❢ .❡3♠✐♥❛.✐♦♥✑ ♣3♦❝❡((✮✳
✶✳✸ ▼♦❞❡❧
❙❡"✕❯♣✿ ❚❤❡3❡ ❛3❡ N ✜3♠(✱ ♣3♦❞✉❝✐♥❣ ❛ (✐♥❣❧❡ ❤♦♠♦❣❡♥❡♦✉( ❝♦❞❡ ❣♦♦❞✳ ▼❛3❣✐♥❛❧ ❝♦(. ✐(
❝♦♥(.❛♥. ❛♥❞ ♥♦3♠❛❧✐(❡❞ .♦ ③❡3♦✳ ❚❤❡② (✐♠✉❧.❛♥❡♦✉(❧② ❝♦♠♣❡.❡ ✐♥ ♣3✐❝❡( .♦ (❡❧❧ .❤❡ ♣3♦❞✉❝.
.♦ ❛ ✉♥✐. ♠❛(( ♦❢ ❝♦♥(✉♠❡3(✱ ❛♥❞ ♠❛3❦❡.( ♦♣❡♥ ❢♦3 .✇♦ ♣❡3✐♦❞(✿ ✐♥ .❤❡ ✜3(. ♣❡3✐♦❞✱ ✜3♠(
❝❤❛3❣❡ ❛♥ ✐♥")♦❞✉❝"♦)② ♣)✐❝❡ ❛♥❞ ❝♦♥(✉♠❡3(✱ ♥♦. ②❡. ✏❧♦❝❦❡❞ ✐♥✑ .♦ ❛♥② ✜3♠✱ ❝❤♦♦(❡ ❛ ✜3♠✳
❚❤❡♥✱ ❛. .❤❡ ♦♥(❡. ♦❢ .❤❡ (❡❝♦♥❞ ♣❡3✐♦❞✱ ❝♦♥(✉♠❡3( ❛3❡ ♣3✐✈❛.❡❧② ✐♥❢♦3♠❡❞ ♦❢ .❤❡✐3 (✇✐.❝❤✐♥❣
❝♦(.✳ ❋✐3♠( (✐♠✉❧.❛♥❡♦✉(❧② (❡. ♠❛.✉3❡ ♠❛3❦❡. ♣3✐❝❡( ✕ ❧♦②❛❧ ❛♥❞ 3❡.❡♥.✐♦♥ ♦✛❡3(✱ ❛✈❛✐❧❛❜❧❡
.♦ ❝♦♥(✉♠❡3( ✇❤♦ ♣✉3❝❤❛(❡❞ ❢3♦♠ .❤❡♠ ✐♥ .❤❡ ✜3(. ♣❡3✐♦❞✱ ❛♥❞ ❛ (✇✐.❝❤✐♥❣ ♣3✐❝❡ ❛✈❛✐❧❛❜❧❡
.♦ .❤♦(❡ ✇❤♦ ❞✐❞ ♥♦.✳ ❈♦♥(✉♠❡3( .❤❡♥ ❝❤♦♦(❡ ✇❤✐❝❤ ♦✛❡3 .♦ .❛❦❡✱ ❛♥❞ ♣❛②♦✛( ❛3❡ 3❡❛❧✐(❡❞✳
❚❤❡ .✐♠✐♥❣ ♦❢ .❤❡ ♠♦❞❡❧ ✐( (✉♠♠❛3✐(❡❞ ✐♥ ✜❣✉3❡ ✷✳✶
❈♦♥0✉♠❡)0✿ ❈♦♥(✉♠❡3( ✈❛3② ✐♥ .❤❡✐3 (✇✐.❝❤✐♥❣ ❝♦(.✱ (♦ ❧❡. .❤❡ ❝♦♥(✉♠❡3✬( .②♣❡ θ ❞❡♥♦.❡ ❤❡3
(✇✐.❝❤✐♥❣ ❝♦(.✳ ■♥ .❤❡ ♣♦♣✉❧❛.✐♦♥✱ .❤❡ ❞✐(.3✐❜✉.✐♦♥ ♦❢ .②♣❡(✱ ❞❡♥♦.❡❞ F (θ)✱ ❤❛( (✉♣♣♦3. ♦♥
.❤❡ ✉♥✐. ✐♥.❡3✈❛❧ [0, 1] ❛♥❞ (❛.✐(✜❡( ❧♦❣✕❝♦♥❝❛✈✐.②✳ ❚❤✐( ❛((✉♠♣.✐♦♥ ❡((❡♥.✐❛❧❧② ❛((✉3❡( .❤❛.
❡①.3❡♠❡( ♦❢ .❤❡ .②♣❡ (♣❛❝❡ ❞♦ ♥♦. ♦❝❝✉3 .♦♦ ❢3❡J✉❡♥.❧② ❛♥❞ ❣✉❛3❛♥.❡❡( ✉♥✐J✉❡(( ♦❢ ❡J✉✐❧✐❜3✐❛
✶
✳
❋♦3♠❛❧❧②✱
❆!!✉♠♣%✐♦♥ ✶✳ ❚❤❡ 0✇✐"❝❤✐♥❣ ❝♦0" ❤❛0 ❧❡❢" ❛♥❞ )✐❣❤" ✐♥❝)❡❛0✐♥❣ ❤❛③❛)❞ )❛"❡0
✶✳ F (θ) ✐0 ❧♦❣✕❝♦♥❝❛✈❡
✷✳ 1− F (θ) ✐0 ❧♦❣✕❝♦♥❝❛✈❡
❚❤❡ ❝♦♥(✉♠❡3 ✐( ♣3❡(❡♥.❡❞ ✇✐.❤ ♦✛❡)0 ❛. ❡❛❝❤ (.❛❣❡ ✐♥ .❤❡ ❣❛♠❡✳ ❆♥ ♦✛❡3 ✐( ❛ ❝♦♠❜✐♥❛.✐♦♥
♦❢ ♣3✐❝❡ ❛♥❞ (✇✐.❝❤✐♥❣ ❡✛♦3. 3❡J✉✐3❡❞ .♦ (❡❝✉3❡ ✐.✳ ■♥ .❤❡ ✐♥.3♦❞✉❝.♦3② (.❛❣❡✱ ❝♦♥(✉♠❡3( ❛3❡
✶
❙❡❡ ❇❡#❣%&#♦♠ ❛♥❞ ❇❛❣♥♦❧✐ ✭✷✵✵✺✮ ❢♦# ❛ #❡✈✐❡✇ ♦♥ ❧♦❣✕❝♦♥❝❛✈❡ ♣#♦❜❛❜❧✐&② ❛♥❞ ✐&% ❡❝♦♥♦♠✐❝ ❛♣♣❧✐❝❛&✐♦♥%✳
▲♦❣✕❝♦♥❝❛✈✐&② ❞♦❡% ♥♦& ♣#♦✈✐❞❡ ✉% ✇✐&❤ %✉✣❝✐❡♥& %&#✉❝&✉#❡ &♦ &✐❡ ❞♦✇♥ ✇❡❧❢❛#❡ #❡%✉❧&%✱ %♦ %♦♠❡ ❧❛&❡# #❡%✉❧&%
❛#❡ ♣#❡%❡♥&❡❞ ✐♥ &❤❡ ❝♦♥&❡①& ♦❢ ❛ ✉♥✐❢♦#♠ ❞✐%&#✐❜✉&✐♦♥
❋✐❣✉3❡ ✶✳✶✿ ❚✐♠❡❧✐♥❡
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✶✷ ❛②✐♥❣ ❈♦♥(✉♠❡,( -♦ ❙-❛②✿ ❘❡-❡♥-✐♦♥ ,✐❝✐♥❣ ❛♥❞ ▼❛,❦❡- ❈♦♠♣❡-✐-✐♦♥
✉♥❛%%❛❝❤❡❞ %♦ ✜,♠.✱ .♦ ♥♦ ❡✛♦,% ✐. ,❡2✉✐,❡❞ %♦ ♣✉,❝❤❛.❡ ❛♥ ✐♥%,♦❞✉❝%♦,② ♦✛❡,✿ (pIi , 0) ✐.
♦✛❡,❡❞ ❜② ❛❧❧ ✜,♠.✳ ■♥ %❤❡ ♠❛%✉,❡ ♠❛,❦❡%✱ ❝♦♥.✉♠❡,. ♦❢ ✜,♠ i ♠❛② ❝❤♦♦.❡ %❤❡ ❧♦②❛❧ ♦✛❡,✱
(pLi , 0)✱ ❛✈❛✐❧❛❜❧❡ ❛. ✏❞❡❢❛✉❧%✑ ✇✐%❤ ♥♦ ❡✛♦,% ,❡2✉✐,❡❞❀ ♦, %❤❡② ♠❛② ❝♦♥%❡♠♣❧❛%❡ ❛ .✇✐%❝❤✐♥❣
♦✛❡, ❢,♦♠ ❛♥② ♦%❤❡, ✜,♠✱ ❡❛❝❤ ♦❢ ✇❤✐❝❤ ,❡2✉✐,❡. ✉♥✐% ❡✛♦,% %♦ ♦❜%❛✐♥✿ (pSj , 1)✱ j ∈ N − i✳
❋✐♥❛❧❧②✱ ❛ ,❡%❡♥%✐♦♥ ♦✛❡, ♠❛② ❜❡ ❛✈❛✐❧❛❜❧❡✱ ❢,♦♠ ✜,♠ i ♦♥❧②✱ ✇❤✐❝❤ ,❡2✉✐,❡. ❡✛♦,% ❧❡✈❡❧ α %♦
♦❜%❛✐♥✳ ❚❤❡ θ ❝♦♥.✉♠❡,✬. ♣❡,✐♦❞ ♣❛②♦✛ ❢♦, ❛ ❣✐✈❡♥ ♦✛❡, ✐. ❣✐✈❡♥ ❜②
uθ(p, e) = β − p− θe ✭✶✳✸✳✶✮
✇❤❡,❡ β > 1 ✐. %❤❡ ✈❛❧✉❛%✐♦♥ ♦❢ %❤❡ ❣♦♦❞✱ .✉✣❝✐❡♥%❧② ❤✐❣❤ %♦ ❡♥.✉,❡ ❢✉❧❧ ♠❛,❦❡% ❝♦✈❡,❛❣❡✳
❋✐"♠$✿ ❚❤❡,❡ ❛,❡ N ≥ 2 ✜,♠.✳ ❉✉❡ %♦ ③❡,♦ ♠❛,❣✐♥❛❧ ❝♦.%.✱ ♣,♦✜% ♠❛①✐♠✐.❛%✐♦♥ ✐. ,❡✈❡♥✉❡
♠❛①✐♠✐.❛%✐♦♥✳ ❚♦ .✐♠♣❧✐❢② %❤❡ ♥♦%❛%✐♦♥✱ ❞❡♥♦%❡ %❤❡ ✜,♠✬. .%,❛%❡❣② ❛. ~pi = (pIi , pSi , p
Ri , p
Li ) ∈
R4✳ ❚❤❡ ♠❛.. ♦❢ ❝♦♥.✉♠❡,. ❝❤♦♦.✐♥❣ ✜,♠ i ✐♥ %❤❡ ✜,.% ♣❡,✐♦❞ ✐. ❣✐✈❡♥ ❜② ❢✉♥❝%✐♦♥ γi(p
Ii , p
I)✱
✇❤❡,❡ pI = min{pIi } ♦✈❡, i ∈ N ✐. %❤❡ .❡% ♦❢ ❝❤❡❛♣❡.% ✐♥%,♦❞✉❝%♦,② ♣,✐❝❡.✳ ■♥ %❤❡ .❡❝♦♥❞
♣❡,✐♦❞✱ %❤❡ ❜❡.% .✇✐%❝❤✐♥❣ ♦✛❡, ❛✈❛✐❧❛❜❧❡ %♦ ✜,♠ i ❝♦♥.✉♠❡,. ✐. ❣✐✈❡♥ ❜② pSi= min{pSj }✱ ❢♦,
j ∈ N − i❀ %❤❡ .❤❛,❡ ♦❢ ✜,♠ i ❝♦♥.✉♠❡,. ❝❤♦♦.✐♥❣ %❤❡ ,❡%❡♥%✐♦♥ ♦✛❡, ✐. ❣✐✈❡♥ ❜② ρi(pSi, pRi )
❛♥❞ .❤❛,❡ λi(pRi , p
Li ) ❝❤♦♦.❡. %❤❡ ❧♦②❛❧ ♦✛❡,✳ ❚❤❡ ♠❛.. ♦❢ ❝♦♥.✉♠❡,. .✇✐%❝❤✐♥❣ ❢,♦♠ ✜,♠ j %♦
i ✐. ❣✐✈❡♥ ❜② %❤❡ ❢✉♥❝%✐♦♥ σij(pSi , p
Sj, pRj )✳ ❖❢ ❝♦✉,.❡✱ ❞✉❡ %♦ %❤❡ ❡①%❡♥.✐✈❡ ❢♦,♠ ♥❛%✉,❡ ♦❢ %❤❡
❣❛♠❡✱ %❤❡ .%,❛%❡❣② .♣❛❝❡ ✐. ,✐❝❤❡, %❤❛♥ %❤✐.✳ ❇✉% ✇✐❧❧ .❤♦✇ %❤❛% %❤❡ ,❡.%,✐❝%✐♦♥. ♠❛❞❡ ❤❡,❡
❛,❡ ❡2✉✐❧✐❜,✐✉♠ ♦✉%❝♦♠❡. ❛♥❞ ❞♦ ♥♦% ❛✛❡❝% %❤❡ ,❡.✉❧%.✳
❚❤❡ ♣,♦✜% ♦❢ ✜,♠ i ✐. %❤✉. ❣✐✈❡♥ ❜②
πi(~pi, ~p−i) = γi(pIi , p
I)pIi + γi
(
ρi(pS
i, pRi )p
Ri + λi(p
Ri , p
Li )p
Li
)
✭✶✳✸✳✷✮
+∑
j∈N−i
γjσij(pSi , p
S
j, pRj )p
Si
✇❤❡,❡ %❤❡ ✜,.% %❡,♠ ❞❡♥♦%❡. ♣,♦✜%. ✐♥ %❤❡ ✐♥%,♦❞✉❝%♦,② ♣❡,✐♦❞✳ ❚❤❡ ,❡♠❛✐♥✐♥❣ %❡,♠.
❝♦♥❝❡,♥ %❤❡ ♠❛%✉,❡ ♠❛,❦❡%✿ %❤❡ .❡❝♦♥❞ ❝♦♥%❛✐♥. ♣,♦✜%. ❢,♦♠ %❤❡ ❡①✐.%✐♥❣ ❝♦♥.✉♠❡, ❜❛.❡✱
❛♥❞ %❤❡ %❤✐,❞ ♣,♦✜%. ❢,♦♠ ✏♣♦❛❝❤✐♥❣✑ ❝♦♥.✉♠❡,. ❢,♦♠ ❝♦♠♣❡%✐%♦,✳ ▲❡% σi ❞❡✜♥❡ %❤❡ %✐❡✕
❜,❡❛❦✐♥❣ ,✉❧❡✿
σij(pSi , p
S
j, pRj ) =
1(piS = mj∈N
in(pjS))
|min(pjS)|✭✶✳✸✳✸✮
❚❤❡,❡ ✐. ♥♦ ❞✐.❝♦✉♥%✐♥❣✱ ❜✉% ✐% ❝❛♥ ❜❡ .❤♦✇♥ %❤❛% ❡2✉❛❧ ❞✐.❝♦✉♥% ,❛%❡. ♦❢ ❝♦♥.✉♠❡,. ❛♥❞
✜,♠. ❞♦ ♥♦% ❛✛❡❝% %❤❡ ,❡.✉❧%.✳
❋✐♥❛❧❧②✱ %♦ ,❡.♦❧✈❡ ♣❛②♦✛ %✐❡.✱ ✇❡ ,❡❧② ♦♥ ✉♥✐❢♦,♠ %✐❡ ❜,❡❛❦✐♥❣✿
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✶ ✶✸
❆!!✉♠♣%✐♦♥ ✷ ✭❯♥✐❢♦(♠ ❚✐❡ ❇(❡❛❦✐♥❣✮✳ ■♥ ❝❛$❡ ❝♦♥$✉♠❡)$ ❛)❡ ✐♥❞✐✛❡)❡♥- ❜❡-✇❡❡♥ $❡✈❡)❛❧
✜)♠$✱ ❡❛❝❤ ✜)♠ )❡❝❡✐✈❡$ ❛♥ ❡5✉❛❧ ♠❛$$ ♦❢ ❝♦♥$✉♠❡)$
❚❤❡ ❛22✉♠♣5✐♦♥ ✐2 ♦♥❧② ❢♦( ❝♦♥✈❡♥✐❡♥❝❡❀ ✇✐5❤♦✉5 5✐❡ ❜(❡❛❦✐♥❣✱ 5❤❡(❡ ✇♦✉❧❞ ❜❡ ♠✉❧5✐♣❧❡
❡?✉✐❧✐❜(✐❛✱ ❜✉5 ❡❛❝❤ ❛❣❡♥5 (❡❝❡✐✈❡2 5❤❡ 2❛♠❡ ♣❛②♦✛ ❛2 ✐♥ 5❤❡ ✉♥✐?✉❡ ❡?✉✐❧✐❜(✐✉♠ ❞❡(✐✈❡❞ ✉♥❞❡(
5❤❡ ❯❚❇ ❛22✉♠♣5✐♦♥✳
✶✳✹ ❊$✉✐❧✐❜)✐✉♠ ❆♥❛❧②/✐/
❚❤❡ 25(✉❝5✉(❡ ♦❢ 5❤❡ ❣❛♠❡ ✐♠♣❧✐❡2 5❤❛5 ✇❡ ❤❛✈❡ ❢♦✉( ❝❧❛22❡2 ♦❢ ✐♥❢♦(♠❛5✐♦♥ 2❡52✳ ❋✐(25✱
5❤❡(❡ ✐2 ❛ 2✐♥❣❧❡5♦♥ ✐♥5(♦❞✉❝5♦(② ♣(✐❝✐♥❣ 25❛❣❡ ✐♥ ✇❤✐❝❤ ❡❛❝❤ ✜(♠2 2❡52 ♦♥❧② ❛ 2✐♥❣❧❡ ♣(✐❝❡✳
❚❤❡♥✱ ❝♦♥2✉♠❡(2 ♠❛❦❡ 5❤❡✐( ✜(25 ♣✉(❝❤❛2❡ ❞❡❝✐2✐♦♥2✱ ❤❛✈✐♥❣ ♦❜2❡(✈❡❞ 5❤❡ ✐♥5(♦❞✉❝5♦(② ♣(✐❝❡2
♦✛❡(❡❞ ❜② ❛❧❧ ✜(♠2✳ ◆♦✇✱ 5❤❡ 2❡❝♦♥❞ ♣❡(✐♦❞ 25❛(52✳ ❊❛❝❤ ♣♦22✐❜❧❡ ✜(25✕♣❡(✐♦❞ ❤✐25♦(② ♠❛♣2
5♦ ❛ 2✐♥❣❧❡5♦♥ ♠❛5✉(❡ ♠❛(❦❡5 ♣(✐❝✐♥❣ ✐♥❢♦(♠❛5✐♦♥ 2❡5✱ ✐♥ ✇❤✐❝❤ ❛❧❧ ✜(♠2 2✐♠✉❧5❛♥❡♦✉2❧② 2❡5
5❤❡✐( ❧♦②❛❧✱ (❡5❡♥5✐♦♥ ❛♥❞ 2✇✐5❝❤✐♥❣ ♣(✐❝❡2❀ ❤♦✇❡✈❡(✱ ✇❡ ✇✐❧❧ 2❤♦✇ 5❤❛5 ✐5 ✐2 ❛♥ ❡?✉✐❧✐❜(✐✉♠
♦✉5❝♦♠❡ 5❤❛5 5❤❡ ❡?✉✐❧✐❜(✐❛ ✐♥ 5❤✐2 ❣❛♠❡ ❞♦ ♥♦5 ❞❡♣❡♥❞ ♦♥ 5❤❡ ❤✐25♦(②✳ ❍❡♥❝❡✱ 5♦ ✉♥❝❧✉55❡(
5❤❡ ♥♦5❛5✐♦♥✱ ✇❡ ✇✐❧❧ 2✐♠♣❧② ✇(✐5❡ 5❤❡ ♣(✐❝❡2 ❛2 ❛ ✹✲✈❡❝5♦(✳ ❋✐♥❛❧❧②✱ ❝♦♥2✉♠❡(2 ♦❢ ❡❛❝❤ ✜(♠
❝❤♦♦2❡ 5❤❡✐( ♠❛5✉(❡ ♠❛(❦❡5 ♦✛❡(❀ ❛❣❛✐♥✱ ✇❡ ✇✐❧❧ ❞❡♠♦♥25(❛5❡ 5❤❛5 5❤❡ ❡?✉✐❧✐❜(✐✉♠ ❛❝5✐♦♥2
❞❡♣❡♥❞ ♦♥❧② ♦♥ 5❤❡ ✜(♠ ♣✉(❝❤❛2❡❞ ❢(♦♠ ✐♥ 5❤❡ ✜(25 ♣❡(✐♦❞ ❛♥❞ ♠❛5✉(❡ ♠❛(❦❡5 ♣(✐❝❡2 ❛✈❛✐❧❛❜❧❡
5♦ 5❤❡ ❝♦♥2✉♠❡( ❛♥❞ ❞❡♥♦5❡ 5❤❡ ❝❤♦✐❝❡ (✉❧❡ ❛❝❝♦(❞✐♥❣❧②✳
❖✉( 2♦❧✉5✐♦♥ ❝♦♥❝❡♣5 ✐2 2✉❜❣❛♠❡ ♣❡(❢❡❝5 ◆❛2❤ ❡?✉✐❧✐❜(✐✉♠✳ ❚❤✐2 ❧❡❛❞2 5♦ 5❤❡ ❢♦❧❧♦✇✐♥❣
❞❡✜♥✐5✐♦♥ ♦❢ 5❤❡ ❡?✉✐❧✐❜(✐✉♠✿
❉❡✜♥✐%✐♦♥ ✶ ✭❊?✉✐❧✐❜(✐✉♠✮✳ ❆ $❡- ♦❢ ♣)✐❝❡$ (p∗Ii , p∗Si , p∗Ri , p∗Li ) ❢♦) ❛❧❧ ✜)♠$ i ∈ N ❛♥❞
❝♦♥$✉♠❡) ❝❤♦✐❝❡ )✉❧❡$ C∗1 ✱ C∗2 $✉❝❤ -❤❛-
✶✳ ❈♦♥$✉♠❡)$ ❝❤♦♦$❡ ♦♣-✐♠❛❧❧② ✐♥ -❤❡ ♠❛-✉)❡ ♠❛)❦❡-
C∗2(θ, j, pLi , p
Ri , p
S−i) = ❛)❣♠❛①
(pLi ,0),(pRi ,α),(pS
−i,1)
(β − p2 − θe2)
∀θ ∈ Θ, j ∈ N, (pLj , pRj , p
S−j) ∈ R3
✷✳ ❋✐)♠$ ♠❛①✐♠✐$❡ ♠❛-✉)❡ ♠❛)❦❡- ♣)♦✜-$✿
(p∗Li , p∗Ri , S∗j) =❛)❣♠❛① π(pIi , pLi , p
Ri , p
Si ; p
I−i, p
∗L−i , p
∗R−i , p
∗S−i;C1, C
∗2)
∀j ∈ N, (pIi , pI−i) ∈ RNC1 ∈ C1
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✶✹ ❛②✐♥❣ ❈♦♥(✉♠❡,( -♦ ❙-❛②✿ ❘❡-❡♥-✐♦♥ ,✐❝✐♥❣ ❛♥❞ ▼❛,❦❡- ❈♦♠♣❡-✐-✐♦♥
✸✳ ❈♦♥%✉♠❡)% ❝❤♦♦%❡ ♦♣-✐♠❛❧❧② ✐♥ -❤❡ ✜)%- ♣❡)✐♦❞✿
C∗1(θ, pI1 . . . , p
IN) = ❛)❣♠❛①
j∈N(β − pIj ) + u∗2(θ, C
∗1 , p
Ij , ~p
∗2)
∀(pI1 . . . , pIN) ∈ RN
✹✳ 8)♦✜- ▼❛①✐♠✐%❛-✐♦♥ ✐♥ -❤❡ ✜)%- ♣❡)✐♦❞✿
pIi = ❛)❣♠❛① π(pIi , p∗I−i; ~p
∗2)∀j ∈ J
✶✳✹✳✶ ▼❛%✉'❡ ▼❛'❦❡%
❈♦♥%✉♠❡) ❇❡❤❛✈✐♦✉) ✿ ●✐✈❡♥ (❤❡ ♦✛❡,- ❛✈❛✐❧❛❜❧❡ (♦ ❛ ❝♦♥-✉♠❡,✱ ✇❤✐❝❤ ❞❡♣❡♥❞- ♦♥ (❤❡ ✜,♠
-❤❡ ❜♦✉❣❤( ❢,♦♠ ✐♥ (❤❡ ✜,-( ♣❡,✐♦❞✱ ❞✐✛❡,❡♥( (②♣❡- ♠❛② ✐♥ ♣,✐♥❝✐♣❧❡ ❝❤♦♦-❡ ❞✐✛❡,❡♥( ❛❝(✐♦♥-✳
❆ -♠❛❧❧ ❡①(,❛ ❝♦♠♣❧✐❝❛(✐♦♥ ❛,✐-❡- ❤❡,❡ (❤❛( ❝♦♥-✉♠❡,- ❝❛♥ ❝❤♦♦-❡ ❜❡(✇❡❡♥ (❤,❡❡ ♦✛❡,-✱ ❛♥❞
(❤✉- ✐( ♠❛② ❜❡ (❤❛( ♦♥❡ ♦❢ (❤❡ ♦✛❡,- ✐- -(,✐❝(❧② ✇♦,-❡ (❤❛♥ (❤❡ ♦(❤❡,- ❢♦, ❛❧❧ (②♣❡-✳ ■♥ -✉❝❤ ❛
❝❛-❡✱ (❤❡ ✏♠❛,❣✐♥❛❧ ❝♦♥-✉♠❡,✑ ❛♣♣,♦❛❝❤ ✇♦✉❧❞ ♥♦( ❜❡ ✇❡❧❧✕❞❡✜♥❡❞✳ ❚♦ -♦❧✈❡ (❤❡ ♠♦❞❡❧✱ ✜,-(
♦❜-❡,✈❡ (❤❛( ❝♦♥-✉♠❡, ❝❤♦✐❝❡- ✐♥ (❤❡ ♠❛(✉,❡ ♠❛,❦❡( ❛,❡ (❤,❡-❤♦❧❞ -(,❛(❡❣✐❡-✱ ❛- ,❡E✉✐,❡❞ ❢♦,
(❤❡ ♠❛,❣✐♥❛❧ ❝♦♥-✉♠❡, ❛♣♣,♦❛❝❤✿
▲❡♠♠❛ ✶✳✹✳✶ ✭❚❤,❡-❤♦❧❞ ❙(,❛(❡❣✐❡-✮✳ ❯♥❞❡) -❤❡ ♠❛-✉)❡ ♠❛)❦❡- ❝❤♦✐❝❡ )✉❧❡ c2✱ -❤❡ ♦♣-✐♠❛❧
❝❤♦✐❝❡ ♠✉%- ❤❛✈❡ ❝♦♥%✉♠❡)% ♣❧❛②✐♥❣ ❛ -❤)❡%❤♦❧❞ %-)❛-❡❣②✳
8)♦♦❢✳ ❙✉♣♣♦-❡ ✜,♠ i ❝♦♥-✉♠❡,- θ1 ❛♥❞ θ2✱ ♦♣(✐♠❛❧❧② ❝❤♦♦-❡✱ ✇✐(❤♦✉( ❧♦-- ♦❢ ❣❡♥❡,❛❧✐(②✱ (❤❡
❧♦②❛❧ ♦✛❡,❀ ❤❡♥❝❡ (❤❡② ♠✉-( ✇❡❛❦❧② ♣,❡❢❡, ❧♦②❛❧ ♦✈❡, ,❡(❡♥(✐♦♥ ❛♥❞ (❤❡ ❜❡-( -✇✐(❝❤✐♥❣ ♦✛❡,
❛✈❛✐❧❛❜❧❡✳ ❚❤✐- ✐♠♣❧✐❡- β − piL ≥ β − piR− αθ ❛♥❞ β − piL ≥ β − piS− θ ❢♦, θ = {θ1, θ2}✳ ◆♦✇
❝♦♥-✐❞❡, ❛♥② ❝♦♥✈❡① ❝♦♠❜✐♥❛(✐♦♥ ♦❢ (❤❡ (②♣❡-✱ θ = λθ1 + (1− λ)θ2✳ ❙✐♥❝❡ (❤❡ ♣❛②♦✛ (♦ ❡❛❝❤
❛❝(✐♦♥ ✐- ❧✐♥❡❛, ✐♥ θ✱ ✐( ✐- ✐♠♠❡❞✐❛(❡ (♦ ✈❡,✐❢② (❤❛( θ ✇✐❧❧ ❛❧-♦ ✇❡❛❦❧② ♣,❡❢❡, (❤❡ ❧♦②❛❧ ♦✛❡,✳
❚❤❡ ❛,❣✉♠❡♥( ❢♦, ♦(❤❡, ✜,♠- ❛♥❞ ♦✛❡,- ✐- ❡①❛❝(❧② ❛♥❛❧♦❣♦✉-❀ ❤❡♥❝❡✱ (❤❡,❡ ✇✐❧❧ ❜❡ ❝♦♥✈❡①
-❡(- ♦❢ ❝♦♥-✉♠❡, (②♣❡- ❝❤♦♦-✐♥❣ (❤❡ -❛♠❡ ♦✛❡,✳
■( (✉,♥- ♦✉( (❤❛( (❤❡,❡ ❛,❡ (✇♦ ❝❛-❡-✿ ❢♦, -✉✣❝✐❡♥(❧② ❤✐❣❤ ,❡(❡♥(✐♦♥ ♣,✐❝❡-✱ -♦♠❡ ❝♦♥-✉♠❡,-
-(,✐❝(❧② ♣,❡❢❡, -✇✐(❝❤✐♥❣ ❛♥❞ ♦(❤❡,- -(,✐❝(❧② ♣,❡❢❡, (❤❡ ❧♦②❛❧ ♦✛❡, ♦✈❡, ,❡(❡♥(✐♦♥✳ ❍♦✇❡✈❡,✱ ❛-
(❤❡ ,❡(❡♥(✐♦♥ ♣,✐❝❡ ❢❛❧❧-✱ ❡✈❡♥(✉❛❧❧② ❛ ♣♦-✐(✐✈❡ ♠❛-- ♦❢ ❝♦♥-✉♠❡,- ❛❧-♦ ❝❤♦♦-❡- (❤❡ ,❡(❡♥(✐♦♥
♦✛❡,✳ ❚❤✉-✱ ✇❡ ❤❛✈❡ (♦ ❝♦♥-✐❞❡, (✇♦ ❝❛-❡- ✐♥ ♦✉, ❛♥❛❧②-✐-✿
▲❡♠♠❛ ✶✳✹✳✷✳ ■❢ piR > piR = (1− α)piL + αpiS✱ ♥♦ ❝♦♥%✉♠❡) ♦❢ ✜)♠ i ❝❤♦♦%❡% )❡-❡♥-✐♦♥
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✶ ✶✺
!♦♦❢✳ ❋♦$ ❛ ❝♦♥(✉♠❡$ θ ,♦ ❝❤♦♦(❡ $❡,❡♥,✐♦♥✱ ✐, ♠✉(, ❜❡ ✇❡❛❦❧② ♣$❡❢❡$$❡❞ ,♦ (✇✐,❝❤✐♥❣✱
$❡9✉✐$✐♥❣ θ ≥ piR−piS
1−α✱ ❛♥❞ ❧♦②❛❧✱ ✐✳❡✳ θ ≤ piL−p
iR
α✳ ❲❤❡♥ piR > piR = (1 − α)piL + αpi
S✱ ,❤❡
,✇♦ ❝♦♥❞✐,✐♦♥( ②✐❡❧❞ ❛ ❝♦♥,$❛❞✐❝,✐♦♥❀ ❤❡♥❝❡ ❡❛❝❤ ❝♦♥(✉♠❡$ ❡✐,❤❡$ ✇❡❛❦❧② ♣$❡❢❡$( (✇✐,❝❤✐♥❣ ♦$
❧♦②❛❧ ♦✈❡$ $❡,❡♥,✐♦♥✳
❚❤❡ ❝$✐,✐❝❛❧ $❡,❡♥,✐♦♥ ♣$✐❝❡ piR✱ ✐( (✐♠♣❧② ❛ ❝♦♥✈❡① ❝♦♠❜✐♥❛,✐♦♥ ♦❢ ,❤❡ ❧♦②❛❧ ❛♥❞ (✇✐,❝❤✐♥❣
♣$✐❝❡(❀ ,♦ (❡❡ ✇❤② ❛ $❡,❡♥,✐♦♥ ♣$✐❝❡ (❧✐❣❤,❧② ❜❡❧♦✇ ,❤❡ ❧♦②❛❧ ♣$✐❝❡ ♠❛② ♥♦, ❛,,$❛❝, ❝♦♥(✉♠❡$(✱
♥♦,❡ ,❤❛, ✐♥ ❣❡♥❡$❛❧ ,❤❡ ❡✛♦$, ❝♦(, (❡❝✉$✐♥❣ $❡,❡♥,✐♦♥ ✐( (,$✐❝,❧② ♣♦(✐,✐✈❡✳ ❚❤✉(✱ ,❤❡ $❡,❡♥,✐♦♥
♣$✐❝❡ ❤❛( ,♦ ❜❡ (✉✣❝✐❡♥,❧② ❜❡❧♦✇ ,❤❡ ❧♦②❛❧ ♣$✐❝❡ ,♦ ❛,,$❛❝, ❛♥② ❝♦♥(✉♠❡$(✳
❈♦♠❜✐♥✐♥❣ ,❤❡(❡ ,✇♦ ❧❡♠♠❛(✱ ✇❡ ❝❛♥ ♥♦✇ ❞❡$✐✈❡ ,❤❡ ♠❛$❣✐♥❛❧ ❝♦♥(✉♠❡$( ✐♥ ,❤❡ ♥♦✕
$❡,❡♥,✐♦♥ ❛♥❞ $❡,❡♥,✐♦♥ ❝❛(❡( $❡(♣❡❝,✐✈❡❧②✿
▲❡♠♠❛ ✶✳✹✳✸✳ ❖♣'✐♠❛❧ ❝♦♥.✉♠❡! ❝❤♦✐❝❡ c∗2 ✐. ❣✐✈❡♥ ❜②
✶✳ ■❢ piR > piR✱ '❤❡!❡ ✐. ❛ ♠❛!❣✐♥❛❧ ❝♦♥.✉♠❡! θSL = L− S✱ .✉❝❤ '❤❛' ❛❧❧ ❝♦♥.✉♠❡!. ❜❡❧♦✇
θSL .✇✐'❝❤ ❛♥❞ ♦'❤❡!. .'❛② ❧♦②❛❧✳
✷✳ ■❢ piR ≤ piR✱ '❤❡!❡ ❛!❡ '✇♦ ♠❛!❣✐♥❛❧ ❝♦♥.✉♠❡!.✳ ❈♦♥.✉♠❡!. ❜❡❧♦✇ θS =piR−p
iS
1−α.✇✐'❝❤❀
❛♥❞ ❝♦♥.✉♠❡!. ❛❜♦✈❡ θR =piL−p
iR
α❝❤♦♦.❡ '❤❡ ❧♦②❛❧ ♦✛❡!❀ ❛❧❧ ♦'❤❡!. ❝❤♦♦.❡ !❡'❡♥'✐♦♥✳
!♦♦❢✳ ✶✳ ❚❤❡ ♣$❡✈✐♦✉( ❧❡♠♠❛ ❡(,❛❜❧✐(❤❡( ,❤❛, ♥♦ ❝♦♥(✉♠❡$ ❝❤♦♦(❡( $❡,❡♥,✐♦♥ ❢♦$ ,❤❡(❡
♣$✐❝❡(✳ ■, $❡♠❛✐♥( ,♦ ✜♥❞ ,❤❡ ♠❛$❣✐♥❛❧ ❝♦♥(✉♠❡$ ❜❡,✇❡❡♥ ❧♦②❛❧ ❛♥❞ (✇✐,❝❤✐♥❣✳ ❋♦$ ,❤❡
♠❛$❣✐♥❛❧ ❝♦♥(✉♠❡$ β − piL = β − piS− θ ❤♦❧❞(✱ ❣✐✈✐♥❣ ,❤❡ $❡9✉✐$❡❞ ❝♦♥❞✐,✐♦♥✳
✷✳ ❋$♦♠ ,❤❡ ♣$❡✈✐♦✉( ❧❡♠♠❛✱ ,❤❡$❡ ❛$❡ ❝♦♥(✉♠❡$ ,②♣❡( ❝❤♦♦(✐♥❣ $❡,❡♥,✐♦♥✳ ❈♦♥(✉♠❡$(
✇✐,❤ β − piS− θ = β − piR − αθ ❛$❡ ♠❛$❣✐♥❛❧ ❜❡,✇❡❡♥ (✇✐,❝❤✐♥❣ ❛♥❞ $❡,❡♥,✐♦♥❀ ❛♥❞
❝♦♥(✉♠❡$ β − piR − αθ = β − piL ✐( ♠❛$❣✐♥❛❧ ❜❡,✇❡❡♥ $❡,❡♥,✐♦♥ ❛♥❞ ❧♦②❛❧✱ ②✐❡❧❞✐♥❣ ,❤❡
❞❡(✐$❡❞ ❝♦♥❞✐,✐♦♥(✳
▼❛'✉!❡ ▼❛!❦❡' !✐❝✐♥❣ ✿ ✐♥ ✈✐❡✇ ♦❢ ,❤❡ ❢❛❝, ,❤❛, ,❤❡$❡ ❛$❡ ❜♦,❤ $❡,❡♥,✐♦♥ ❛♥❞ ♥♦✕$❡,❡♥,✐♦♥
❝❛(❡(✱ ✐, ✐( ❝❧❡❛$ ,❤❛, ✐♥ ♣$✐♥❝✐♣❧❡ (❡♣❛$❛,❡ ❛♥❛❧②(✐( ♦❢ ❜♦,❤ $❡❣✐♦♥( ✐( $❡9✉✐$❡❞✳ ❍♦✇❡✈❡$✱ ✐,
✐( ❛ (✐♠♣❧❡ ♦❜(❡$✈❛,✐♦♥ ,❤❛, ♦♥❝❡ ❛ ✜$♠ ❝❤❛$❣❡( ❛ (✉✣❝✐❡♥,❧② ❤✐❣❤ $❡,❡♥,✐♦♥ ♣$✐❝❡ ,❤❛, ♥♦
❝♦♥(✉♠❡$ ✇♦✉❧❞ ❛❝❝❡♣, ✐,✱ ❢♦$ ❛❧❧ ♣❧❛②❡$( ✐, ❜❡❝♦♠❡( ♣❛②♦✛✕✐$$❡❧❡✈❛♥, ❥✉(, ❤♦✇ ❢❛$ ❛❜♦✈❡
,❤❡ ♥♦✕$❡,❡♥,✐♦♥ ❝♦♥(,$❛✐♥, ,❤✐( ♣$✐❝❡ $❡❛❧❧② ✐(✳ ❙❡❝♦♥❞❧②✱ ✇❡ ♠✉(, ❤❛✈❡ ❛❧❧ ♠❛,✉$❡ ♠❛$❦❡,
♣$✐❝❡( ❛, ❧❡❛(, ❡9✉❛❧ ,♦ ③❡$♦✱ ❢♦$ ♦,❤❡$✇✐(❡ ❛, ❧❡❛(, ♦♥❡ ✜$♠ ✇♦✉❧❞ ✐♥❝✉$ ✭❛✈♦✐❞❛❜❧❡✮ ❧♦((❡(✳
❚❤✐$❞❧②✱ ❣✐✈❡♥ ❛♥② ♦❢ ,❤❡ (✉$✈✐✈✐♥❣ (✇✐,❝❤✐♥❣ ♣$✐❝❡(✱ ✐( ♥♦, ✐♥ ❛ ✜$♠✬( ✐♥,❡$❡(, ,♦ ✉♥❞❡$❝✉,
,❤❡ $✐✈❛❧✬( (✇✐,❝❤✐♥❣ ♣$✐❝❡ ✇✐,❤ ❛ ❧♦✇❡$ $❡,❡♥,✐♦♥ ♦$ ❧♦②❛❧ ♣$✐❝❡✳ ❋✐♥❛❧❧②✱ (❡,,✐♥❣ ❧♦②❛❧ ❛♥❞
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✶✻ ❛②✐♥❣ ❈♦♥(✉♠❡,( -♦ ❙-❛②✿ ❘❡-❡♥-✐♦♥ ,✐❝✐♥❣ ❛♥❞ ▼❛,❦❡- ❈♦♠♣❡-✐-✐♦♥
❋✐❣✉&❡ ✶✳✷✿ ❆ ❝✉- ♦❢ -❤❡ 1-&❛-❡❣② 1♣❛❝❡
&❡-❡♥-✐♦♥ ♣&✐❝❡1 1✉✣❝✐❡♥-❧② ❤✐❣❤ -❤❛- ❛❧❧ ❝♦♥1✉♠❡&1 1✇✐-❝❤ -♦ -❤❡ ❝♦♠♣❡-✐-✐♦♥ ✐1 ❛❧1♦ ♥♦- ❛♥
♦♣-✐♠❛❧ 1-&❛-❡❣②✳
❚❤&♦✉❣❤ -❤✐1 &❡❛1♦♥✐♥❣✱ ✐❧❧✉1-&❛-❡❞ ✐♥ ✜❣✉&❡ ❄❄✱ ✇❡ ♥❛&&♦✇ ❞♦✇♥ -❤❡ 1❡❛&❝❤ ♦❢ ❡>✉✐❧✐❜&✐❛
❝♦♥1✐❞❡&❛❜❧②✳ ❋✐&1-✱ ❞❡✜♥❡ -❤❡ 1✉❜1❡- D ✭❣&❡❡♥ ✐♥ -❤❡ ✜❣✉&❡✮ ♦❢ -❤❡ 1-&❛-❡❣② 1♣❛❝❡✿
D = {piS, piR, p
iL) 1✉❝❤ -❤❛-piR ≤ piR, p
iR, p
iL ≤ pi
S+ 1, 0 ≤ pS
i; }
▲❡♠♠❛ ✶✳✹✳✹✳ ■❢ "❤❡%❡ ❡①✐("( ❛ ♠❛"✉%❡ ♠❛%❦❡" ❡-✉✐❧✐❜%✐✉♠ ♦✉"(✐❞❡ D✱ "❤❡%❡ ❡①✐("( ❛ ♣❛②♦✛✕
❡-✉✐✈❛❧❡♥" ❡-✉✐❧✐❜%✐✉♠ ✐♥(✐❞❡ D✳
:%♦♦❢✳ ❋✐&1-✱ 1✉♣♣♦1❡ -❤❛- min{pSi, pRi , p
Li } < 0✳ ❚❤❡♥✱ -❤❡&❡ ♠✉1- ❜❡ ❛ ✜&♠ ♠❛❦✐♥❣ ♣♦1✐-✐✈❡
1❛❧❡1 ❛- ❛ ♥❡❣❛-✐✈❡ ♣&✐❝❡❀ ❛ ❞❡✈✐❛-✐♦♥ -♦ &❛✐1✐♥❣ ♣&✐❝❡ ✇♦✉❧❞ ❜❡ ❛ ♣&♦✜-❛❜❧❡ ❞❡✈✐❛-✐♦♥✳ ❙♦ ✇❡
♠✉1- ❤❛✈❡ ❡❛❝❤ ♦❢ -❤❡ -❤&❡❡ ♣&✐❝❡1 ❛- ❧❡❛1- ③❡&♦✳
◆♦✇✱ ❝♦♥1✐❞❡& ♣&✐❝❡1 1✉❝❤ -❤❛- pRi < pSi❛♥❞ pLi < pS
i✱ -❤❡ ❜♦--♦♠ ❧❡❢- 1>✉❛&❡ ✐♥ -❤❡ ✜❣✉&❡✳
■♥ -❤✐1 ❝❛1❡✱ ❛ ❞❡✈✐❛-✐♦♥ -♦ 1❡--✐♥❣ pRi = pLi = pSi✇✐❧❧ ♥♦- &❡❞✉❝❡ -❤❡ ♠❛11 ♦❢ ❝♦♥1✉♠❡&1
✭❛❧❧ ❝♦♥1✉♠❡&1 ❜✉② ❢&♦♠ ✜&♠ i✮✱ ❜✉- ✐♥❝&❡❛1❡1 &❡✈❡♥✉❡ ♣❡& ❝♦♥1✉♠❡&✳ ❍❡♥❝❡ -❤✐1 ❝❛1❡ ❛❧1♦
❝❛♥♥♦- ❜❡ ❛♥ ❡>✉✐❧✐❜&✐✉♠✳ ■❢ pLi ≥ pSi❜✉- pRi < pS
i✱ 1✐♠✐❧❛&❧② ❛ ❞❡✈✐❛-✐♦♥ -♦ 1❡--✐♥❣ pRi = pS
i
✐♥❝&❡❛1❡1 &❡✈❡♥✉❡ ♣❡& ❝♦♥1✉♠❡& ❜✉- ❞♦❡1 ♥♦- &❡❞✉❝❡ ♠❛&❦❡- 1❤❛&❡✳
◆♦✇ ❝♦♥1✐❞❡& ♣&✐❝❡1 pLi > pSi+1✳ ❋&♦♠ ❧❡♠♠❛ ✶✳✹✳✸✱ -❤❡ ♠❛&❣✐♥❛❧ ❝♦♥1✉♠❡& ✇✐❧❧ -❤❡♥ ❜❡
♦✉-1✐❞❡ -❤❡ ❞♦♠❛✐♥ ♦❢ F ✱ 1♦ ♥♦ ❝♦♥1✉♠❡& ❝❤♦♦1❡1 -❤❡ ❧♦②❛❧ ♦✛❡&✳ ❍❡♥❝❡ ❛ &❡❞✉❝-✐♦♥ ✐♥ -❤❡
❧♦②❛❧ ♣&✐❝❡ -♦ pLi = pSi+ 1 ✇✐❧❧ ♥♦- ❛✛❡❝- -❤❡ ♣❛②♦✛ ♦❢ ❛♥② ✜&♠✳ ❙✐♠✐❧❛&❧②✱ ✐❢ -❤❡ &❡-❡♥-✐♦♥
♣&✐❝❡ ✐1 ❛❜♦✈❡ -❤❡ -❤&❡1❤♦❧❞✱ pRi > pRi ✱ ✐♥❞✐❝❛-❡❞ ❜② -❤❡ ✏♥♦✕&❡-❡♥-✐♦♥ ❧✐♥❡✑ ✐♥ -❤❡ ✜❣✉&❡✱ ♥♦
❝♦♥1✉♠❡& ❝❤♦♦1❡1 &❡-❡♥-✐♦♥✳ ❆❣❛✐♥✱ ❛ &❡❞✉❝-✐♦♥ ♦❢ -❤❡ &❡-❡♥-✐♦♥ ♣&✐❝❡ -♦ pRi = pRi ❧❡❛✈❡1 -❤❡
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✶ ✶✼
♣❛②♦✛' ♦❢ ❛❧❧ ✜+♠' ✉♥❝❤❛♥❣❡❞✳ ❍❡♥❝❡✱ ✐❢ 8❤❡+❡ ❛+❡ ❡9✉✐❧✐❜+✐❛ ♦✉8'✐❞❡ D✱ 8❤❡② ♠✉'8 ❜❡ ♣❛②♦✛
❡9✉✐✈❛❧❡♥8 8♦ ❛♥ ❡9✉✐❧✐❜+✐✉♠ ♦♥ 8❤❡ ❜♦✉♥❞❛+② ♦❢ D✳
❍❡♥❝❡✱ ✇❡ ❝❛♥ +❡✇+✐8❡ 8❤❡ ♣❛②♦✛ ❢✉♥❝8✐♦♥ ♦❢ ❛ ✜+♠ i ✐♥ 8❤❡ ♠❛+❣✐♥❛❧ ❝♦♥'✉♠❡+ ❢♦+♠✿
Π2i (p
iR, p
iL; p
iS) = γi{[1− F (θR(p
iR, p
iL)]p
iL + [F (θR(p
iR, p
iL)− F (θS(p
iS, piR)]p
iR}
︸ ︷︷ ︸
Π2,RLi
+∑
j∈N−i
γjσij(pSi , p
Sj, pRj )F (θS(p
iS ; p
−iR )piS
︸ ︷︷ ︸
Π2,Si
❚❤❡ ♣+♦✜8 ❢✉♥❝8✐♦♥ ❝♦♥'✐'8' ♦❢ 8✇♦ ♣❛+8'✳ ❚❤❡ ✜+'8 ❜+❛❝❦❡8✱ ✇❡✐❣❤❡❞ ❜② 8❤❡ ♠❛+❦❡8
'❤❛+❡ ✐♥❤❡+✐8❡❞ ❢+♦♠ 8❤❡ ✜+'8 ♣❡+✐♦❞✱ ❞❡♥♦8❡❞ γi✱ ✐' 8❤❡ ♣+♦✜8 ♠❛❞❡ ♦♥ 8❤❡ ♦✇♥ 8❤❡ ❡①✐'8✐♥❣
❝♦♥'✉♠❡+ ❜❛'❡✳ ❙✐♥❝❡ ♠❛+❣✐♥❛❧ ❝♦'8 ✐' ③❡+♦✱ 8❤✐' '✐♠♣❧② 8❤❡ '✉♠ ♦❢ +❡✈❡♥✉❡ ✐♥ 8❤❡ ❧♦②❛❧ ♠❛+❦❡8
'❡❣♠❡♥8✱ ✇❤❡+❡ ❝♦♥'✉♠❡+' ✇✐8❤ θ ≥ θR ♣❛② piL✱ ❛♥❞ +❡✈❡♥✉❡ ❢+♦♠ +❡8❛✐♥❡❞ ❝♦♥'✉♠❡+'✳ ❚❤❡'❡
❛+❡ 8❤❡ ❝♦♥'✉♠❡+' ✇✐8❤ ❧♦✇❡+ '✇✐8❝❤✐♥❣ ❝♦'8 8❤❛♥ 8❤❡ ❧♦②❛❧ ❝♦♥'✉♠❡+'✱ θ ≤ θR✱ ❜✉8 ❢♦+ ✇❤♦♠
❛ ❢✉❧❧✕'❝❛❧❡ '✇✐8❝❤ ✐' '8✐❧❧ 8♦♦ ❝♦'8❧② ✭θ ≥ θS✮✳
❚❤❡ '❡❝♦♥❞ ♣❛+8 ✐' ♣+♦✜8 ❢+♦♠ '✇✐8❝❤✐♥❣ ❝♦♥'✉♠❡+'✳ ❉✉❡ 8♦ 8❤❡ ✉♥✐❢♦+♠ 8✐❡✕❜+❡❛❦✐♥❣ +✉❧❡✱
✐❢ '❡✈❡+❛❧ ✜+♠' ❝❤❛+❣❡ 8❤❡ ❧♦✇❡'8 '✇✐8❝❤✐♥❣ ♣+✐❝❡✱ ❜✉'✐♥❡'' ❢+♦♠ ❛♥② '✇✐8❝❤✐♥❣ ❝♦♥'✉♠❡+' ✐'
❡✈❡♥❧② ❞✐✈✐❞❡❞ ❜❡8✇❡❡♥ 8❤♦'❡ ✜+♠'✳ ❚❤❡ ✐♥❞✉'8+② +❡✈❡♥✉❡ ❢+♦♠ '✇✐8❝❤✐♥❣ ❝♦♥'✉♠❡+' ❞❡♣❡♥❞'
♦♥ 8❤❡ 8❤❡ ❧♦✇❡'8 '✇✐8❝❤✐♥❣ ♣+✐❝❡ ✐♥ 8❤❡ ♠❛+❦❡8 ❛♥❞ 8❤❡ +❡8❡♥8✐♦♥ ♣+✐❝❡' ♦❢ ❡❛❝❤ ✜+♠✱ ❛' '❤♦✇♥
✐♥'✐❞❡ 8❤❡ ✜♥❛❧ ❜+❛❝❦❡8✳
❖❜'❡+✈❡ 8❤❛8 8❤❡ 8✇♦ ♣❛+8' ♦❢ 8❤❡ ♣+♦✜8 ❢✉♥❝8✐♦♥ ❛+❡ ❛❞❞✐8✐✈❡❧② '❡♣❛+❛❜❧❡ ✐♥ 8❤❡ '✇✐8❝❤✐♥❣
❛♥❞ ❧♦②❛❧✴+❡8❡♥8✐♦♥ ♣+✐❝❡ +❡'♣❡❝8✐✈❡❧②✳ ❚❤✐' ❢❡❛8✉+❡ ✐' '❤❛+❡❞ ✇✐8❤ 8❤❡ ❝❛♥♦♥✐❝❛❧ ♠♦❞❡❧ ♦❢
❈❤❡♥ ✭✶✾✾✼✮✿ ❜❡❝❛✉'❡ ✐8 ✐' ❡✛❡❝8✐✈❡❧② ♦❜'❡+✈❛❜❧❡ ✇❤♦ ❜♦✉❣❤8 ❢+♦♠ ✇❤✐❝❤ ✜+♠ ✐♥ 8❤❡ ✜+'8
♣❡+✐♦❞✱ 8❤❡ ✜+♠✬' '✇✐8❝❤✐♥❣ ♣+✐❝❡ ❞♦❡' ♥♦8 ❝♦♠♣❡8❡ ✇✐8❤ 8❤❡ ❧♦②❛❧ ❛♥❞ +❡8❡♥8✐♦♥ ♦✛❡+' ❢♦+ 8❤❡
'❛♠❡ ❝♦♥'✉♠❡+✳ ❍❡♥❝❡✱ ♠❛①✐♠✐'✐♥❣ ♣+♦✜8 ❢+♦♠ 8❤❡ ❡①✐'8✐♥❣ ❝♦♥'✉♠❡+ ❜❛'❡ ❛♥❞ ❛88+❛❝8✐♥❣
'✇✐8❝❤✐♥❣ ❝♦♥'✉♠❡+' ❛+❡ '❡♣❛+❛8❡ ❝♦♥❝❡+♥'✳ ❲❡ ✜+'8 ❝♦♥'✐❞❡+ 8❤❡ ♣+♦❜❧❡♠ ♦❢ ♣+✐❝✐♥❣ 8❤❡
❢♦+♠❡+ ❣+♦✉♣✿
❇❡"# ❘❡"♣♦♥"❡ ❆♥❛❧②"✐"✿ ❖✇♥ ❝♦♥"✉♠❡3 ❜❛"❡✳ ❚♦ ❡♠♣❤❛'✐'❡ 8❤❡ +❡❧❛8✐♦♥'❤✐♣ ✇✐8❤ '❡❝♦♥❞✕
❞❡❣+❡❡ ♣+✐❝❡ ❞✐'❝+✐♠✐♥❛8✐♦♥ ♠♦❞❡❧'✱ ♥♦8❡ 8❤❛8 ✕ ♦♥ 8❤❡ ❞♦♠❛✐♥ D ✕ 8❤❡ ♣+♦❜❧❡♠ ♦❢ ♠❛①✐♠✐'✐♥❣
♣+♦✜8 Π2,RLi ❝❛♥ ❜❡ ❡9✉✐✈❛❧❡♥8❧② ✇+✐88❡♥ ❛'
♠❛①
pRi ,pLi
γi{[1− F (θR)]piL + [F (θR)− F (θS)]p
iR}
'✳8✳ β − pLi ≥ β − pRi − αθ ❢♦+ θ ∈ [θR, 1] ✭■❈✮
β − pRi − αθ ≥ β − pSi− θ ❢♦+ θ ∈ [θS, θR] ✭N❈✮
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✶✽ ❛②✐♥❣ ❈♦♥(✉♠❡,( -♦ ❙-❛②✿ ❘❡-❡♥-✐♦♥ ,✐❝✐♥❣ ❛♥❞ ▼❛,❦❡- ❈♦♠♣❡-✐-✐♦♥
■♥ $❤❡ '$❛♥❞❛*❞ ❇❇,❉ ♠♦❞❡❧✱ ♣*✐❝❡' ❛*❡ '❡$ ❝♦♥❞✐$✐♦♥❛❧ ♦♥ ♦❜'❡*✈❛❜❧❡'❀ $❤✉' ♦♥❧② ❛
♣❛*$✐❝✐♣❛$✐♦♥ ❝♦♥'$*❛✐♥$ ❛♣♣❧✐❡'✳ ❘❡$❡♥$✐♦♥✱ ♦♥ $❤❡ ♦$❤❡* ❤❛♥❞✱ ✐' ✐♥❝❡♥$✐✈❡✕❝♦♠♣❛$✐❜❧❡ ♣*✐❝❡
❞✐'❝*✐♠✐♥❛$✐♦♥✱ '♦ ❛$ $❤❡ ♠❛*❣✐♥✱ $❤❡ ■❈ ❝♦♥'$*❛✐♥$ ❜✐♥❞'✳ ❖✉* ♠♦❞❡❧ $❤✉' ❝♦♠❜✐♥❡' ❡❧❡♠❡♥$'
♦❢ $❤✐*❞✕❞❡❣*❡❡ ❛♥❞ '❡❝♦♥❞✕❞❡❣*❡❡ ♣*✐❝❡ ❞✐'❝*✐♠✐♥❛$✐♦♥✳ ◆♦$❡ $❤❛$ ♠❛*❦❡$ '❤❛*❡ '✐♠♣❧② '❝❛❧❡'
$❤❡ ♣*♦✜$ ❢✉♥❝$✐♦♥ ❜✉$ ❞♦❡' ♥♦$ ❛✛❡❝$ $❤❡ ✜*'$✕♦*❞❡* ❝♦♥❞✐$✐♦♥'❀ $❤✐' ✐' ❛❣❛✐♥ ❛ ❝♦♥'❡E✉❡♥❝❡
♦❢ $❤❡ ❢❛❝$ $❤❛$ ❡❛❝❤ ❝♦♥'✉♠❡*✬' ♣✉*❝❤❛'❡ '$❛$✉' ✐' ♦❜'❡*✈❛❜❧❡✳
❚❤❡ ✜*'$ ❞❡*✐✈❛$✐✈❡' ❛*❡ ❣✐✈❡♥ ❜②✿
dΠ2,RLi
dpiL=1− F (θR)−
f(θR)
α
(piL − piR
)✭✶✳✹✳✶✮
dΠ2,RLi
dpiR=F (θR)− F (θS) +
f(θR)
α
(piL − piR
)− f(θS)
1− αpiR ✭✶✳✹✳✷✮
❚❤❡ ✐♥$❡*♣*❡$❛$✐♦♥ ✐' '$❛♥❞❛*❞✿ ✇❤❡♥ *❛✐'✐♥❣ $❤❡ ❧♦②❛❧ ♣*✐❝❡✱ 1 − F (θR) ❝♦♥'✉♠❡*' ♣❛②
♠♦*❡✱ $❤❡ ✐♥❢*❛✕♠❛*❣✐♥❛❧ ❣❛✐♥❀ ❛$ $❤❡ ♠❛*❣✐♥✱ $❤❡*❡ ❛*❡ f(θR) ❝♦♥'✉♠❡*'✱ ✇✐$❤ ❡❧❛'$✐❝✐$②
1/α✱ $❤❛$ ✇✐❧❧ ♦♣♣♦*$✉♥✐'$✐❝❛❧❧② ❝❧❛✐♠ *❡$❡♥$✐♦♥✳ ■♥ *❡$❡♥$✐♦♥ ♣*✐❝✐♥❣✱ $❤❡*❡ ✐' ✜*'$ $❤❡ ✐♥❢*❛✕
♠❛*❣✐♥❛❧ ❣❛✐♥❀ '❡❝♦♥❞✱ ❛$ $❤❡ ✉♣♣❡* ♠❛*❣✐♥✱ ❝♦♥'✉♠❡*' ♠♦✈❡ ✐♥$♦ $❤❡ ❧♦②❛❧ '❡❣♠❡♥$✱ ❝*❡❛$✐♥❣
❛♥ ❡①$*❛✕♠❛*❣✐♥❛❧ ❣❛✐♥✳ ❋✐♥❛❧❧②✱ ❛$ $❤❡ ❧♦✇❡* ♠❛*❣✐♥✱ ❝♦♥'✉♠❡*' '✇✐$❝❤ $♦ $❤❡ ❝♦♠♣❡$✐$♦*✱
❛♥ ❡①$*❛✕♠❛*❣✐♥❛❧ ❧♦''✳
❲❤❡♥ ✐' *❡$❡♥$✐♦♥ ♣*♦✜$❛❜❧❡❄ ■$ $✉*♥' ♦✉$ $❤❛$ *❡$❡♥$✐♦♥ ✐' ♣*♦✜$❛❜❧❡ ♣*❡❝✐'❡❧② ✇❤❡♥ $❤❡
'✇✐$❝❤✐♥❣ ♣*✐❝❡ ❡①❝❡❡❞' ♠❛*❣✐♥❛❧ ❝♦'$✿
▲❡♠♠❛ ✶✳✹✳✺✳ ❖♥❧② ✐❢ $❤❡ 1✇✐$❝❤✐♥❣ ♣4✐❝❡ ❡①❝❡❡❞1 ♠❛4❣✐♥❛❧ ❝♦1$✱ $❤❡ ❜❡1$ 4❡1♣♦♥1❡ 4❡$❡♥$✐♦♥
♣4✐❝❡ ✐1 ❜❡❧♦✇ $❤❡ $❤4❡1❤♦❧❞ ✇❤❡4❡ ♥♦ ❝♦♥1✉♠❡4 ❛❝❝❡♣$1 4❡$❡♥$✐♦♥✱ ✐✳❡✳ ♦♥❧② ✐❢ piS> 0✱ $❤❡♥
p∗Ri < piR
:4♦♦❢✳ ❍♦❧❞✐♥❣ piS✜①❡❞✱ ❝♦♥'✐❞❡* ❛♥② ♣*✐❝❡' (piR, p
iL) ♦♥ $❤❡ ♥♦✕*❡$❡♥$✐♦♥ ❧✐♥❡✳ ❚❤❡♥✱ ✇❡
♠✉'$ ❤❛✈❡ θR = θS✳ ❊✈❛❧✉❛$✐♥❣
dΠ2,RLi
dpiR$❤❡♥ ②✐❡❧❞' f(θR)
piR−(1−α)piL
α(1−α= f(θR)
−piS
(1−α)✱ ✇❤❡*❡ $❤❡
'❡❝♦♥❞ ❡E✉❛❧✐$② ❢♦❧❧♦✇' ❢*♦♠ $❤❡ ❞❡✜♥✐$✐♦♥ ♦❢ piR✳
❍❡♥❝❡✱ ✇❤❡♥❡✈❡* piS> 0✱ ❛ ❞❡✈✐❛$✐♦♥ $♦ ❧♦✇❡*✐♥❣ *❡$❡♥$✐♦♥ ♣*✐❝❡ ❜❡❧♦✇ $❤❡ ♥♦✕*❡$❡♥$✐♦♥
❧✐♥❡ ✐♥❝*❡❛'❡' ♣*♦✜$'✳
❚♦ '❡❡ $❤❡ ✐♥$✉✐$✐♦♥ ♦❢ $❤❡ ❧❡♠♠❛✱ ❝♦♥'✐❞❡* $❤❡ ❢♦❧❧♦✇✐♥❣ ❡①❛♠♣❧❡ ❢♦* ❛ ❝♦♥'✉♠❡* ♦❢
✜*♠ i✳ ❙✉♣♣♦'❡ ❧♦②❛❧ ♣*✐❝❡ ✐' pLi = 12✱ α = 1
2✱ ❛♥❞ $❤❡ ❝❤❡❛♣❡'$ '✇✐$❝❤✐♥❣ ♣*✐❝❡ pS
i= 2ǫ✳
❚❤❡♥✱ ❜② ❧❡♠♠❛ ✶✳✹✳✷✱ $❤❡ ❧♦✇❡'$ ♣*✐❝❡ ❛$ ✇❤✐❝❤ ♥♦ ❝♦♥'✉♠❡* ❝❤♦♦'❡' $❤❡ *❡$❡♥$✐♦♥ ♦✛❡*
✐' piR = 1212= 1
4+ ǫ✳ ◆♦✇ ❝♦♥'✐❞❡* ❛ '♠❛❧❧ *❡❞✉❝$✐♦♥ ✐♥ $❤❡ *❡$❡♥$✐♦♥ ♣*✐❝❡✳ ❚❤❡ ♠❛'' ♦❢
❝♦♥'✉♠❡*' ♠♦✈✐♥❣ ❢*♦♠ '✇✐$❝❤✐♥❣ $♦ *❡$❡♥$✐♦♥ ✐' 2f(θ)✱ ❡E✉❛❧ $♦ $❤❡ ♠❛'' ♠♦✈✐♥❣ ❢*♦♠ ❧♦②❛❧
$♦ *❡$❡♥$✐♦♥✳ ❖♥ $❤❡ ✜*'$ ❣*♦✉♣ ♦❢ ❝♦♥'✉♠❡*'✱ $❤❡ ✜*♠✬' ✐♥❝*❡♠❡♥$❛❧ ♣*♦✜$ ✐'
14+ ǫ✱ '✐♥❝❡
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✶ ✶✾
"❤❡② ✇❡'❡ ♣'❡✈✐♦✉-❧② -✇✐"❝❤❡'-✳ ❚❤❡ ♣'❡✈✐♦✉-❧② ❧♦②❛❧ ❝♦♥-✉♠❡'- ❤♦✇❡✈❡' ♣❛② ❧❡--✱ ❧❡❛❞✐♥❣
"♦ ❛ ❧♦-- ♦❢
14− ǫ ♣❡' ❝♦♥-✉♠❡'✳ ❚❤✉- ✇❤❡♥ ǫ > 0✱ "❤❡ ❣❛✐♥ ❡①❝❡❡❞- "❤❡ ❧♦--❀ ❜✉" ✇✐"❤ ③❡'♦
-✇✐"❝❤✐♥❣ ♣'✐❝❡✱ "❤❡ "✇♦ ❡✛❡❝"- ❡①❛❝"❧② ❜❛❧❛♥❝❡✳ ❋♦' α 6= 12✱ "❤❡ -❛♠❡ ✐♥"✉✐"✐♦♥ ❤♦❧❞- -✐♥❝❡
"❤❡ ❝'✐"✐❝❛❧ '❡"❡♥"✐♦♥ ♣'✐❝❡ pRi ❞❡♣❡♥❞- ♦♥ α ✐"-❡❧❢✳
▲❡♠♠❛ ✶✳✹✳✻✳ ❇❡"# $❡"♣♦♥"❡ ♣$✐❝❡" ❢♦$ #❤❡ ❡①✐"#✐♥❣ ❝♦♥"✉♠❡$ ❜❛"❡ ❛$❡ ✐♠♣❧✐❝✐#❧② ❞❡✜♥❡❞ ❜②
0 = α1− F (θR)
f(θR)+ piR − piL
0 =
(1− α)1−F (θS)f(θS)
− piR ✐❢ piS≤ 1−α
f(0)
piS− piR ♦#❤❡$✇✐"❡
7$♦♦❢✳ ❆- ✇❡ ❛'❣✉❡❞ ❛❜♦✈❡✱ "❤❡ '❡❧❡✈❛♥" ❞♦♠❛✐♥ ♦❢ "❤❡ ♣'♦❜❧❡♠ ✐- D✳ ❋✐'-"✱ ❧❡"✬- ❝♦♥-✐❞❡'
❝♦'♥❡'- ✇❤❡'❡ F (θR) = 1✱ ✐✳❡✳ ♥♦ ❝♦♥-✉♠❡' ♣✉'❝❤❛-❡- "❤❡ ❧♦②❛❧ ♦✛❡'✳ ❆" -✉❝❤ ♣♦✐♥"-✱ "❤❡
✜'-" ♦'❞❡' ❝♦♥❞✐"✐♦♥ ✶✳✹✳✶✱ ✐- ♥❡❣❛"✐✈❡✱ ❤❡♥❝❡ ❝❛❧❧✐♥❣ ❢♦' ❛ ❧♦✇❡' ❧♦②❛❧ ♣'✐❝❡✳ ❙❡❝♦♥❞✱ ❛" "❤❡
❝♦'♥❡' ✇❤❡'❡ F (θR) = 0✱ ❡D✉❛"✐♦♥ ✶✳✹✳✶ '❡❞✉❝❡- "♦ α(1/f(0)− 0) ≥ 0✱ ❛❢"❡' -✉❜-"✐"✉"✐♥❣ ♦✉"
"❤❡ ❞❡✜♥✐"✐♦♥ ♦❢ θR✳ ❚❤✉-✱ ❜② ❛♣♣❡❛❧ "♦ ❝♦♥"✐♥✉✐"②✱ "❤❡ ♦♣"✐♠❛❧ ❧♦②❛❧ ♣'✐❝❡ ✐- ❛❧✇❛②- ✐♥"❡'✐♦'
❛♥❞ ❤❡♥❝❡ "❤❡ ✜'-"✕♦'❞❡' ❝♦♥❞✐"✐♦♥ ✐- -✉✣❝✐❡♥"✳
❘❡"❡♥"✐♦♥ ♣'✐❝✐♥❣✿ ❙✐♥❝❡ "❤❡ ✜'-"✕♦'❞❡' ❝♦♥❞✐"✐♦♥ ❢♦' "❤❡ ❧♦②❛❧ ♣'✐❝❡ ✐- -✉✣❝✐❡♥"✱ ✇❡ ❝❛♥
-✉❜-"✐"✉"❡ ✐" ✐♥"♦ ✶✳✹✳✷✳ ❚❤✐- ②✐❡❧❞- "❤❡ -✐♠♣❧✐✜❡❞ ✜'-"✕♦'❞❡' ❝♦♥❞✐"✐♦♥ ❢♦' piR✿
dΠ2,RLi
dpiR=1− F (θS)−
f(θS)
1− αpiR
❖❜-❡'✈❡ "❤❛"✱ -✉❜❥❡❝" "♦ "❤❡ ❧♦②❛❧ ♣'✐❝❡ ❜❡✐♥❣ ♦♣"✐♠❛❧❧② ❝❤♦-❡♥✱ "❤❡ '❡"❡♥"✐♦♥ ♣'✐❝❡ ❞❡♣❡♥❞-
♦♥❧② ♦♥ "❤❡ ❝♦♠♣❡"✐"♦'✬- ❜❡-" -✇✐"❝❤✐♥❣ ♣'✐❝❡✳
❚❤❡ ✜'-" ♦'❞❡' ❝♦♥❞✐"✐♦♥ ❤❛- ❛ ❞✐-❝♦♥"✐♥✉✐"② ❛" F (θS) = 1❀ ❜✉" ❛- ✇❡ ❛❧'❡❛❞② -❤♦✇❡❞✱
F (θR) < 1 ✐♥ ❛♥② ❜❡-" '❡-♣♦♥-❡✱ ❛♥❞ ❢'♦♠ "❤❡ ❞❡✜♥✐"✐♦♥ ♦❢ D✱ ✇❡ ♠✉-" ❤❛✈❡ θS ≤ θR❀ "❤✉-
"❤❡ '✐❣❤"✕❤❛♥❞ ❞✐-❝♦♥"✐♥✉✐"② ✐- ♦✉"-✐❞❡ "❤❡ ❞♦♠❛✐♥✳ ■" '❡♠❛✐♥- "♦ ❝❤❡❝❦ "❤❡ ❝❛-❡ F (θS) = 0✳
❚❤❡ ✜'-"✕♦'❞❡' ❝♦♥❞✐"✐♦♥ ✐- ♣♦-✐"✐✈❡ ❛" "❤✐- ♣♦✐♥" ✐❢ 1 − 0 − f(0)piS
1−α≥ 0✱ ✐✳❡✳ pi
S≤ 1−α
f(0)✳ ■♥
"❤✐- ❝❛-❡✱ ❛❣❛✐♥ ❜② ❛♣♣❡❛❧ "♦ ❝♦♥"✐♥✉✐"②✱ "❤❡ ❜❡-" '❡-♣♦♥-❡ '❡"❡♥"✐♦♥ ♣'✐❝❡ ✇✐❧❧ ❜❡ ✐♥"❡'✐♦' ❛♥❞
dΠ2,RLi
dpiR= 0 ♠✉-" ❤♦❧❞✳ ❖"❤❡'✇✐-❡✱ "❤❡ ❜❡-" '❡-♣♦♥-❡ ✐- ❛" "❤❡ ❝♦'♥❡'✿ piR = pi
S✳
❙✇✐#❝❤✐♥❣ ❈♦♥"✉♠❡$"✿ ❚❤❡ ♣'♦✜" ❢✉♥❝"✐♦♥ ♦♥ -✇✐"❝❤✐♥❣ ❝♦♥-✉♠❡'- ✐- ❣✐✈❡♥ ❜②
Π2,Si =
∑
j∈N−i
γjσij(pSi , p
S
j, pRj )F (θS(p
iS; p
−iR ))piS
❆♥❛❧②-✐♥❣ "❤❡ ❜❡-" '❡-♣♦♥-❡ ❢♦' ❛❧❧ ♣♦--✐❜❧❡ ❧♦②❛❧✴'❡"❡♥"✐♦♥ ♣'✐❝❡- ❜② ❛❧❧ ✜'♠- ✐- ✉♥'❡❛✲
-♦♥❛❜❧② ❝♦♠♣❧❡① ❛♥❞ ②✐❡❧❞- ♥♦ ❛❞❞✐"✐♦♥❛❧ ✐♥-✐❣❤"✳ ❙✐♥❝❡ ♦✉' ✐♥"❡'❡-" ✐- ✐♥ ❡D✉✐❧✐❜'✐❛ ♦❢ "❤❡
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✷✵ ❛②✐♥❣ ❈♦♥(✉♠❡,( -♦ ❙-❛②✿ ❘❡-❡♥-✐♦♥ ,✐❝✐♥❣ ❛♥❞ ▼❛,❦❡- ❈♦♠♣❡-✐-✐♦♥
♣#✐❝✐♥❣ ❣❛♠❡✱ ✇❡ ✐♥-.❡❛❞ ❝❤❛#❛❝.❡#✐-❡ .❤❡ -✇✐.❝❤✐♥❣ ♣#✐❝❡- .❤❛. ❝❛♥ ♦❝❝✉# ✐♥ ❡3✉✐❧✐❜#✐✉♠✱
.❤❛. ✐-✱ -✉❜❥❡❝. .♦ (piS, p−iR ) ❜❡✐♥❣ ✐♥ .❤❡ ❜❡-. #❡-♣♦♥-❡ ❜② ❛❧❧ ✜#♠-✿
▲❡♠♠❛ ✶✳✹✳✼✳ ❙✇✐#❝❤✐♥❣ ♣)✐❝❡+
✶✳ ❲❤❡♥ #❤❡)❡ ❛)❡ ♠♦)❡ #❤❛♥ #✇♦ ✜)♠+ N > 2✱ #❤❡ ♠❛)❦❡# ♣)✐❝❡+ ❢♦) +✇✐#❝❤✐♥❣ ❝♦♥+✉♠❡)+
♠✉+# ❜❡ ③❡)♦✿ p∗iS= 0 ❢♦) ❛❧❧ i ∈ N ✳
✷✳ ❯♥❞❡) ❞✉♦♣♦❧②✱ #❤❡ ❡?✉✐❧✐❜)✐✉♠ +✇✐#❝❤✐♥❣ ♣)✐❝❡ +❛#✐+✜❡+
0 = (1− α)F (θ∗S)
f(θ∗S)− p∗iS
❢♦) ❜♦#❤ ✜)♠+
@)♦♦❢✳ ✶✳ ❋♦❧❧♦✇- ❢#♦♠ -.❛♥❞❛#❞ ❇❡#.#❛♥❞ ❛#❣✉♠❡♥.-✳ ❋✐① ✜#♠ i ❛♥❞ -✉♣♣♦-❡ .❤❡ ❧♦✇❡-.
-✇✐.❝❤✐♥❣ ♣#✐❝❡ ♦✛❡#❡❞ i ❝♦♥-✉♠❡#- ✐- ♣♦-✐.✐✈❡✿ piS> 0✳ ■❢ |min(pjS)| > 1✱ ✐✳❡✳ -❡✈❡#❛❧
✜#♠- ❝❤❛#❣❡ .❤❡ ❧♦✇❡-. ♣#✐❝❡✱ ❛ ❞❡✈✐❛.✐♦♥ .♦ ❧♦✇❡#✐♥❣ pjS ❜② ♦♥❡ ♦❢ .❤❡♠ ❞✐-❝♦♥.✐♥✉♦✉-❧②
✐♠♣#♦✈❡- ♣#♦✜.✳ ❖♥ .❤❡ ♦.❤❡# ❤❛♥❞✱ ✐❢ |min(pjS)| = 1✱ .❤❡#❡ ♠✉-. ❜❡ ✜#♠- .❤❛. ♠❛❦❡
③❡#♦ ♣#♦✜. ❢#♦♠ -✇✐.❝❤✐♥❣ ❝♦♥-✉♠❡#-✳ F✐❝❦ ❛♥② ♦❢ .❤❡-❡ ✜#♠- ❛♥❞ ❝♦♥-✐❞❡# ❛ ❞❡✈✐❛.✐♦♥
.♦ pkS = piS− ǫ✳ ❚❤✐- ❡♥❛❜❧❡- ✜#♠ k .♦ ❝❛♣.✉#❡ .❤❡ ❡♥.✐#❡ ♠❛#❦❡. ❢♦# -✇✐.❝❤❡#- ❛♥❞
✐♠♣#♦✈❡- ♣#♦✜.✳ ❖♥ .❤❡ ♦.❤❡# ❤❛♥❞✱ ✇❤❡♥ piS= 0✱ ♥♦ -✉❝❤ ❞❡✈✐❛.✐♦♥- ❡①✐-.✳ ❚❤✉- ✐♥
❛♥② ❡3✉✐❧✐❜#✐✉♠ ✇✐.❤ ♠♦#❡ .❤❛♥ .✇♦ ✜#♠-✱ .❤❡ -✇✐.❝❤✐♥❣ ♣#✐❝❡ ♠✉-. ❡3✉❛❧ ♠❛#❣✐♥❛❧
❝♦-.✳
✷✳ ■♥ .❤❡ ❞✉♦♣♦❧② ❝❛-❡✱ .❤❡ ♣❛②♦✛ ❢#♦♠ -✇✐.❝❤✐♥❣ ❝♦♥-✉♠❡#- ❜❡❝♦♠❡- F (θS(piS; p
−iR ))piS✳
❚❤✐- ❤❛- .❤❡ ✜#-.✕♦#❞❡# ❝♦♥❞✐.✐♦♥
dΠ2,Si
dpiS= F (θS)− f(θS)
piS1− α
❲❡ ❦♥♦✇ ❢#♦♠ .❤❡ ♣#❡✈✐♦✉- ❧❡♠♠❛ .❤❛. ✐❢ piS > 1−αf(0)
✱ .❤❡ #❡.❡♥.✐♦♥ ♣#✐❝❡ ✇✐❧❧ ❜❡ -❡. .♦
♠❛.❝❤ .❤❡ -✇✐.❝❤✐♥❣ ♣#✐❝❡✱ ❧❡❛✈✐♥❣ θS = 0 ❛♥❞ ③❡#♦ #❡✈❡♥✉❡ ❢#♦♠ -✇✐.❝❤✐♥❣ ❝♦♥-✉♠❡#-✳
❆ -♠❛❧❧ ❞❡✈✐❛.✐♦♥ .♦ ❧♦✇❡#✐♥❣ .❤❡ ♣#✐❝❡ ✐- .❤✉- ♣#♦✜.❛❜❧❡✳ ❙❡❝♦♥❞❧②✱ ❝♦♥-✐❞❡# ❛♥ ❡3✉✐✲
❧✐❜#✐✉♠ ✇❤❡#❡ .❤❡ -✇✐.❝❤✐♥❣ ♣#✐❝❡ ✐- ③❡#♦✳ ❋#♦♠ .❤❡ ♣#❡✈✐♦✉- ❧❡♠♠❛✱ .❤❡ ❜❡-. #❡-♣♦♥-❡
#❡.❡♥.✐♦♥ ♣#✐❝❡ ✐♥ .❤✐- ❝❛-❡ ✐- ♣♦-✐.✐✈❡✱ ❛♥❞ θS > 0❀ ❤❡♥❝❡✱ ❛ ❞❡✈✐❛.✐♦♥ .♦✇❛#❞- #❛✐-✐♥❣
.❤❡ -✇✐.❝❤✐♥❣ ♣#✐❝❡ ✇♦✉❧❞ ✐♠♣#♦✈❡ ♣#♦✜. ❢#♦♠ ③❡#♦ .♦ ❛ ♣♦-✐.✐✈❡ ❛♠♦✉♥.✳ ❚❤✉-✱ .❤❡
❜❡-.✕#❡-♣♦♥-❡ -✇✐.❝❤✐♥❣ ♣#✐❝❡ -❤♦✉❧❞ ❜❡ ✐♥.❡#✐♦# ✐♥ ❛♥② ❡3✉✐❧✐❜#✐✉♠ ❛♥❞ .❤❡ ✜#-.✕♦#❞❡#
❝♦♥❞✐.✐♦♥ ❛❣❛✐♥ -✉✣❝✐❡♥.✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✶ ✷✶
❊!✉✐❧✐❜&✐✉♠ ❆♥❛❧②,✐,✿ ❈♦❧❧❡❝'✐♥❣ '❤❡ ❡❛-❧✐❡- -❡.✉❧'.✱ ✇❡ ❛-❡ ♥♦✇ -❡❛❞② '♦ .'❛'❡ '❤❡ ❡4✉✐❧✐❜-✐✉♠
♦❢ '❤❡ ♠❛'✉-❡ ♠❛-❦❡' ♣-✐❝✐♥❣ ❣❛♠❡✿
!♦♣♦$✐&✐♦♥ ✶✳✹✳✶ ✭❉✉♦♣♦❧② ▼❛'✉-❡ ▼❛-❦❡' ❊4✉✐❧✐❜-✐✉♠✮✳ ❲✐/❤ N = 2✱ /❤❡&❡ ✐, ❛♥ ❡!✉✐✲
❧✐❜&✐✉♠ ,✉❝❤ /❤❛/✱ ❢♦& ❡❛❝❤ ✜&♠ i ∈ N ✱
✶✳ ❚❤❡ ♠❛&❣✐♥❛❧ ❝♦♥,✉♠❡&, ❛&❡ ❣✐✈❡♥ ❜②
0 =1− F (θ∗R)
f(θ∗R)− θ∗R ✭✶✳✹✳✸✮
0 =1− 2F (θ∗S)
f(θ∗S)− θ∗S ✭✶✳✹✳✹✮
✷✳ >&✐❝❡, ❛&❡ ❣✐✈❡♥ ❜②
0 = α1− F (θ∗R)
f(θ∗R)+ p∗iR − p∗iL ✭✶✳✹✳✺✮
0 = (1− α)1− F (θ∗S)
f(θ∗S)− p∗iR ✭✶✳✹✳✻✮
0 = (1− α)F (θ∗S)
f(θ∗S)− p∗iS ✭✶✳✹✳✼✮
▼♦&❡♦✈❡&✱ /❤❡ ❡!✉✐❧✐❜&✐✉♠ ✐, ♣❛②♦✛✕✉♥✐!✉❡✳
>&♦♦❢✳ ❈♦♥.✉♠❡- ❜❡❤❛✈✐♦✉- ✇❛. ❢♦✉♥❞ ✐♥ ✶✳✹✳✸ ❛♥❞ ✐. ♦♥❧② .'❛'❡❞ ❢♦- ❝♦♠♣❧❡'❡♥❡..✳ ❚♦ ❞❡-✐✈❡
'❤❡ ❡4✉✐❧✐❜-✐✉♠ ♣-✐❝❡.✱ ❝♦♠❜✐♥❡ ❧❡♠♠❛ ✶✳✹✳✻ ❛♥❞ '❤❡ ❞✉♦♣♦❧② ❝❛.❡ ♦❢ ❧❡♠♠❛ ✶✳✹✳✼✳
❋♦- '❤❡ ♠❛-❣✐♥❛❧ -❡'❛✐♥❡❞ ❝♦♥.✉♠❡-✱ .✉❜.'✐'✉'❡ '❤❡ ❞❡✜♥✐'✐♦♥ θR = (piL − piR)/α ✐♥'♦
❡4✉❛'✐♦♥ ✳ ❙✐♠✐❧❛-❧②✱ ❢♦- '❤❡ ♠❛-❣✐♥❛❧ .✇✐'❝❤❡-✱ .✉❜'-❛❝' ❡4✉❛'✐♦♥ ❢-♦♠ ❛♥❞ .✉❜.'✐'✉'❡ ❢♦-
'❤❡ ❞❡✜♥✐'✐♦♥ ♦❢ θS = (piR − p−iS )/(1− α✮✳
❋♦- .✇✐'❝❤✐♥❣ ❛♥❞ -❡'❡♥'✐♦♥ ♣-✐❝✐♥❣✱ '❤❡ ❡4✉✐❧✐❜-✐✉♠ ❝♦♥❞✐'✐♦♥. '❡❧❧ ✉. '❤❛' '❤❡ ♣-✐❝❡
♠✉.' ❡4✉❛❧ '❤❡ -❛'✐♦ ♦❢ ✐♥❢-❛✕♠❛-❣✐♥❛❧ ❧♦.. ✭❣✐✈❡♥ ❜② F (x) ❛♥❞ 1 − F (x) -❡.♣❡❝'✐✈❡❧②✮ ♦✈❡-
'❤❡ ❡①'-❛✕♠❛-❣✐♥❛❧ ❣❛✐♥ ♦❢ ❝♦♥.✉♠❡-.✱ ✇❤✐❝❤ ✐. f(x)✳ ❚❤❡.❡ ❡①♣-❡..✐♦♥. ❛-❡ .❝❛❧❡❞ ❜② '❤❡
❡❧❛.'✐❝✐'②✱ 1 − α✳ ❚❤✉. ❡❛❝❤ ✜-♠ .❡'. ♣-✐❝❡. '♦ ♠❛①✐♠✐.❡. -❡✈❡♥✉❡✱ ♥♦' '❛❦✐♥❣ ✐♥'♦ ❛❝❝♦✉♥'
'❤❡ ❜✉.✐♥❡.. .'❡❛❧✐♥❣ ❡①'❡-♥❛❧✐'② ♦♥ '❤❡ -✐✈❛❧✳ ❍♦✇❡✈❡-✱ ✇❤❡♥ .❡''✐♥❣ ❧♦②❛❧ ♣-✐❝❡.✱ '❤❡ ✜-♠
'❛❦❡. ✐♥'♦ ❛❝❝♦✉♥' '❤❛' '❤❡ ♠❛-❣✐♥❛❧ ❝♦♥.✉♠❡- ✇♦✉❧❞ ♠♦✈❡ '♦ '❤❡ -❡'❛✐♥❡❞ .❡❣♠❡♥'✱ ✇❤✐❝❤
.'✐❧❧ ②✐❡❧❞. -❡✈❡♥✉❡ ❢♦- '❤❡ ✜-♠❀ '❤✉. '❤❡-❡ ✐. ♥♦ ❡①'❡-♥❛❧✐'② ❛' '❤✐. ♠❛-❣✐♥✳
■♥ ❡4✉✐❧✐❜-✐✉♠✱ '❤❡ ♠❛-❣✐♥❛❧ ❝♦♥.✉♠❡-. ❛-❡ ✜①❡❞✱ ✐♥❞❡♣❡♥❞❡♥' ♦❢ '❤❡ ❡✛♦-' ❝♦.' ♦❢ -❡'❡♥✲
'✐♦♥ ✭♣❛-❛♠❡'❡- α✮✳ ❆. ❝❛♥ ❜❡ .❡❡♥ ❢-♦♠ '❤❡ ❜❡.' -❡.♣♦♥.❡.✱ .❛② ❛ -✐.❡ ✐♥ α ✐♥❝-❡❛.❡. '❤❡
❡❧❛.'✐❝✐'② ♦❢ ❞❡♠❛♥❞ ❢♦- .✇✐'❝❤✐♥❣✴-❡'❛✐♥❡❞ ♣-✐❝❡.❀ '❤✉.✱ ❛' ❣✐✈❡♥ ♣-✐❝❡.✱ ❛ -❡❞✉❝'✐♦♥ ✐♥ ❜♦'❤
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✷✷ ❛②✐♥❣ ❈♦♥(✉♠❡,( -♦ ❙-❛②✿ ❘❡-❡♥-✐♦♥ ,✐❝✐♥❣ ❛♥❞ ▼❛,❦❡- ❈♦♠♣❡-✐-✐♦♥
!❤❡ $✇✐!❝❤✐♥❣ ❛♥❞ ,❡!❡♥!✐♦♥ ♣,✐❝❡ ✐$ ❝❛❧❧❡❞ ❢♦,✳ ❙❡❝♦♥❞✱ ❢♦, ❛ ❣✐✈❡♥ ♣,✐❝❡ ❞✐✛❡,❡♥❝❡✱ ♠♦,❡
❝♦♥$✉♠❡,$ $✇✐!❝❤ ❛$ α ,✐$❡$✳ ❇② ❝♦♠❜✐♥✐♥❣ !❤❡ ❜❡$! ,❡$♣♦♥$❡$✱ ✇❡ $❡❡ !❤❛! !❤❡ !✇♦ ❡✛❡❝!$
❡①❛❝!❧② ❝❛♥❝❡❧ ❛♥❞ ❤❡♥❝❡ ❝❤❛♥❣❡$ ✐♥ !❤❡ ♣❛,❛♠❡!❡, ❞♦ ♥♦! ✐♥✢✉❡♥❝❡ ♠❛,❣✐♥❛❧ ❝♦♥$✉♠❡,$✳
■♥ ❣❡♥❡,❛❧✱ ❧♦❣✕❝♦♥❝❛✈✐!② ❣✐✈❡$ ✉$ ,❡❧❛!✐✈❡❧② ❧✐!!❧❡ $!,✉❝!✉,❡ ,❡❣❛,❞✐♥❣ !❤❡ $✐③❡$ ♦❢ ♠❛,❣✐♥❛❧✱
,❡!❛✐♥❡❞ ❛♥❞ ❧♦②❛❧ $❡❣♠❡♥!$✳ ❲✐!❤✐♥ !❤❡ ❣❡♥❡,❛❧ ♠♦❞❡❧✱ ✇❡ ✇❡,❡ ♦♥❧② ❛❜❧❡ !♦ $❤♦✇ ❛ ✇❡❛❦
✉♣♣❡, ❜♦✉♥❞ ♦♥ !❤❡ ❛♠♦✉♥! ♦❢ $✇✐!❝❤✐♥❣ ❝♦♥$✉♠❡,$✿
▲❡♠♠❛ ✶✳✹✳✽✳ ▲❡"" #❤❛♥ ❤❛❧❢ ❝♦♥"✉♠❡-" "✇✐#❝❤✱ ✐✳❡✳ F (θ∗S) <12✳
2-♦♦❢✳ ❙✉♣♣♦$❡ ♥♦!✳ ❚❤❡♥
1−2F (θ∗S)
f(θ∗S)< 0✱ $♦ ✇❡ ♠✉$! ❤❛✈❡ θ∗S < 0✱ ❜② ❡D✉❛!✐♦♥ ✶✳✹✳✹✳ ❇✉!
!❤✐$ ❝♦♥!,❛❞✐❝!$ θ∗S ∈ (0, 1)
❲❡ ♥♦✇ !✉,♥ !♦ !❤❡ ❝♦♠♣❡!✐!✐✈❡ ❝❛$❡✳ ■♥ !❤✐$ ❝❛$❡✱ !❤❡ ❡D✉✐❧✐❜,✐✉♠ ✐$ ❛$ ❢♦❧❧♦✇$✿
()♦♣♦,✐.✐♦♥ ✶✳✹✳✷ ✭❈♦♠♣❡!✐!✐✈❡ ▼❛!✉,❡ ▼❛,❦❡! J,✐❝❡$✮✳ ❲✐#❤ N > 2✱ #❤❡-❡ ✐" ❛♥ ❡4✉✐❧✐❜✲
-✐✉♠ "✉❝❤ #❤❛#✱ ❢♦- ❡❛❝❤ ✜-♠ i ∈ N ✱
✶✳ ❈♦♥"✉♠❡-" ✇✐#❤ θ < θ∗S = θ∗R "✇✐#❝❤ ❛♥❞ ❛❧❧ ♦#❤❡-" -❡♠❛✐♥ ❧♦②❛❧❀ #❤❡ ♠❛-❣✐♥❛❧ ❝♦♥"✉♠❡-
"❛#✐"✜❡"
0 =1− F (θ∗S)
f(θ∗S)− θ∗S ✭✶✳✹✳✽✮
✷✳ ❚❤❡ ♠❛-❦❡# ♣-✐❝❡" ❛-❡ ❣✐✈❡♥ ❜②
0 = α1− F (θi∗R )
f(θi∗R )+ p∗iR − p∗iL ✭✶✳✹✳✾✮
0 = (1− α)1− F (θi∗S )
f(θi∗S )− p∗iR ✭✶✳✹✳✶✵✮
0 = p∗iS
✭✶✳✹✳✶✶✮
▼♦-❡♦✈❡-✱ #❤❡ ❡4✉✐❧✐❜-✐✉♠ ✐" ♣❛②♦✛✕✉♥✐4✉❡✳
2-♦♦❢✳ ❲❡ ❢♦❧❧♦✇ ❡①❛❝!❧② !❤❡ $!❡♣$ ♦❢ ♣,♦✈✐♥❣ ♣,♦♣♦$✐!✐♦♥ ✶✳✹✳✶✱ ❜✉! !❤✐$ !✐♠❡ ❝♦♠❜✐♥✐♥❣
❧❡♠♠❛ ✶✳✹✳✻ ✇✐!❤ !❤❡ ❝♦♠♣❡!✐!✐✈❡ ❝❛$❡ ✐♥ ❧❡♠♠❛ ✶✳✹✳✼✳
❙✐♥❝❡ !❤❡ $✇✐!❝❤✐♥❣ ♣,✐❝❡ ♠✉$! ❜❡ ③❡,♦✱ ✉$✐♥❣ ❡D✉❛!✐♦♥ ✶✳✹✳✶✵ ♣,♦✈✐❞❡$ !❤❡ ❝♦♥❞✐!✐♦♥ ❢♦,
!❤❡ ♠❛,❣✐♥❛❧ $✇✐!❝❤❡,✱ (1−F (θ∗S))/f(θ∗S)−θ∗S = 0✱ ❛❢!❡, $✉❜$!✐!✉!✐♥❣ !❤❡ ❞❡✜♥✐!✐♦♥ ♦❢ θ∗S✳ ❇✉!
!❤✐$ ✐$ ❡①❛❝!❧② !❤❡ $❛♠❡ ❝♦♥❞✐!✐♦♥ ❛$ ♦❜!❛✐♥❡❞ ❢♦, θR ❢,♦♠ ❡D✉❛!✐♦♥ ✶✳✹✳✾❀ ❤❡♥❝❡ !❤❡ ❝♦♥$✉♠❡,
♠❛,❣✐♥❛❧ ❜❡!✇❡❡♥ $✇✐!❝❤✐♥❣ ❛♥❞ ,❡!❡♥!✐♦♥ ✐$ ❛❧$♦ ♠❛,❣✐♥❛❧ !♦ ❧♦②❛❧✱ ❛♥❞ !❤❡ ,❡!❛✐♥❡❞ $❡❣♠❡♥!
✐$ ❡♠♣!②✱ ❛$ ❝❧❛✐♠❡❞✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✶ ✷✸
❋✐❣✉&❡ ✶✳✸✿ ❊,✉✐❧✐❜&✐✉♠ ❈❤♦✐❝❡4
5❛②♦✛✕✉♥✐,✉❡♥❡44✿ ❋✐&4;✱ ♣&♦✜; ❢&♦♠ 4✇✐;❝❤✐♥❣ ❝♦♥4✉♠❡&4 ♠✉4; ❜❡ ③❡&♦ ✐♥ ❛♥② ❡,✉✐✲
❧✐❜&✐✉♠ ❛4 piS
= 0 ❢♦& ❛❧❧ i✳ ❇✉; ❢♦& &❡;❛✐♥❡❞ ❛♥❞ ❧♦②❛❧ ❝♦♥4✉♠❡&4✱ ;❤❡ ❜❡4; &❡4♣♦♥4❡ ✐4
4✐♥❣❧❡✕✈❛❧✉❡❞✱ ;②✐♥❣ ❞♦✇♥ ;❤❡ ♣&♦✜; Π∗,RLi ❢♦& ❛❧❧ i✳✳
❖❜4❡&✈❡ ;❤❛; ;❤❡ ❡,✉✐❧✐❜&✐✉♠ ❝♦♥❞✐;✐♦♥4 ❛&❡ ②♠♠❡$%✐❝✿ ;❤❛; ✐4✱ ❢♦& ❛❧❧ ✜&♠4✱ ;❤❡ ❧♦②❛❧✱
&❡;❡♥;✐♦♥ ❛♥❞ ❧♦✇❡4; 4✇✐;❝❤✐♥❣ ♣&✐❝❡ ❛&❡ ✐❞❡♥;✐❝❛❧✳ ❚❤✐4 ❢❡❛;✉&❡ ✇✐❧❧ ❜❡ ✐♠♣♦&;❛♥; ✐♥ ❛♥❛❧②4✐4
♦❢ ;❤❡ ✜&4; ♣❡&✐♦❞✱ 4✐♥❝❡ ✐; ✐♠♣❧✐❡4 ;❤❛; ;❤❡ ❝♦♥;✐♥✉❛;✐♦♥ ✉;✐❧✐;② ♦❢ ❛ ❝♦♥4✉♠❡& ❞♦❡4 ♥♦;
❞❡♣❡♥❞ ♦♥ ✇❤✐❝❤ ✜&♠ ✇❛4 ❝❤♦4❡♥ ✐♥ ;❤❡ ✜&4; ♣❡&✐♦❞✳
❋✐❣✉&❡ ❄❄ ✐❧❧✉4;&❛;❡4 ;❤❡ 4;&✉❝;✉&❡ ♦❢ ;❤❡ ♠❛;✉&❡ ♠❛&❦❡; ❡,✉✐❧✐❜&✐✉♠ ✐♥ ;❤❡ ;✇♦ ❝❛4❡4✳
❯♥❞❡& ❞✉♦♣♦❧②✱ ;❤❡ ❧♦✇❡4;✕❝♦4; ❝♦♥4✉♠❡&4 4✇✐;❝❤✱ ❛♥❞ ❤✐❣❤❡4;✕❝♦4; ❝♦♥4✉♠❡&4 &❡♠❛✐♥ ❧♦②❛❧❀
;❤♦4❡ ✇✐;❤ ✐♥;❡&♠❡❞✐❛;❡ ❝♦4;4 ❝❧❛✐♠ ;❤❡ &❡;❡♥;✐♦♥ ♦✛❡&✳ ■♥ ;❤❡ ❝♦♠♣❡;✐;✐✈❡ ❝❛4❡✱ ;❤❡ ♠❛44
♦❢ ❝♦♥4✉♠❡&4 ❝❤♦♦4✐♥❣ ;❤❡ ❧♦②❛❧ ♦✛❡& ✐4 ;❤❡ 4❛♠❡ ❛4 ✉♥❞❡& ❞✉♦♣♦❧②❀ ❤♦✇❡✈❡&✱ ;❤❡&❡ ✐4 ♥♦
&❡;❡♥;✐♦♥ ✐♥ ❡,✉✐❧✐❜&✐✉♠✱ ❜✉; ✐♥4;❡❛❞ ❛ ❤✐❣❤❡& 4✇✐;❝❤✐♥❣ &❛;❡✳
✶✳✹✳✷ ■♥&'♦❞✉❝&♦'② -'✐❝✐♥❣
■♥ ;❤❡ ✜&4; ♣❡&✐♦❞✱ ♥♦ ❝♦♥4✉♠❡& ❤❛4 ②❡; ❜♦✉❣❤; ❢&♦♠ ❛♥② ✜&♠✳ ❍♦✇❡✈❡&✱ ;❤❡② ;❛❦❡ ✐♥;♦
❛❝❝♦✉♥; ;❤❡ ❝♦♥;✐♥✉❛;✐♦♥ ✉;✐❧✐;② ♦❢ ❜❡✐♥❣ ✏❧♦❝❦❡❞ ✐♥✑ ;♦ ❛ ✜&♠ ✐♥ ;❤❡ 4❡❝♦♥❞ ♣❡&✐♦❞ ❞✉❡ ;♦
4✇✐;❝❤✐♥❣ ❝♦4;✱ ✐♥ ❛❞❞✐;✐♦♥ ;♦ ;❤❡ ✐♥;&♦❞✉❝;♦&② ♣&✐❝❡✳ ❚❤✉4 ;❤❡&❡ ✐4 ❛ ❧✐♥❦ ❜❡;✇❡❡♥ ;❤❡ ;✇♦
♣❡&✐♦❞4❀ ❤♦✇❡✈❡&✱ 4✐♥❝❡ ;❤❡ 4❡❝♦♥❞✕♣❡&✐♦❞ ♣&✐❝❡4 ❛&❡ 4②♠♠❡;&✐❝✱ ;❤❡ ❝♦♥;✐♥✉❛;✐♦♥ ✉;✐❧✐;② ♦❢
❜❡✐♥❣ ❛ ❝♦♥4✉♠❡& ♦❢ ✜&♠ i ♦& j ✐4 ✐❞❡♥;✐❝❛❧❀ ;❤✉4✱ ❣✐✈❡♥ 4✉❜❣❛♠❡ ♣❡&❢❡❝;✐♦♥✱ ❝♦♥4✉♠❡& ❝❤♦✐❝❡
♦♥❧② ❞❡♣❡♥❞4 ♦♥ ;❤❡ ✐♥;&♦❞✉❝;♦&② ♣&✐❝❡✿
▲❡♠♠❛ ✶✳✹✳✾ ✭❋✐&4; 5❡&✐♦❞ ❈♦♥4✉♠❡& ❇❡❤❛✈✐♦✉&✮✳ ■♥ $❤❡ ✜% $ ♣❡%✐♦❞✱ ❝♦♥ ✉♠❡% ♣✉%❝❤❛ ❡
❛%❡ ❡✈❡♥❧② ❞✐✈✐❞❡❞ ❛♠♦♥❣ $❤❡ ✜%♠ ❝❤❛%❣✐♥❣ $❤❡ ❧♦✇❡ $ ♣%✐❝❡✿
C1(i, piI , . . . ) =
0 ✐❢ pIi > ♠✐♥{pIj}1
|min{pjI}|✐❢ pIi = ♠✐♥{pIj}
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✷✹ ❛②✐♥❣ ❈♦♥(✉♠❡,( -♦ ❙-❛②✿ ❘❡-❡♥-✐♦♥ ,✐❝✐♥❣ ❛♥❞ ▼❛,❦❡- ❈♦♠♣❡-✐-✐♦♥
!♦♦❢✳ ■♥ "❤❡ ✜&'" ♣❡&✐♦❞✱ ❝♦♥'✉♠❡&' ❛&❡ ♥♦" ②❡" ✐♥❢♦&♠❡❞ ♦❢ "❤❡✐& ❡✛♦&" ❝♦'"✳ ❚❤❡ ✉"✐❧✐"② ♦❢
❛ ❝♦♥'✉♠❡& ❜✉②✐♥❣ ❢&♦♠ ✜&♠ i ✐' "❤✉' ❣✐✈❡♥ ❜② "❤❡ ♣❡&✐♦❞ ♣❛②♦✛ ♣❧✉' "❤❡ ❡①♣❡❝"❡❞ ♣❛②♦✛
♦❢ ❜❡✐♥❣ ❛ ✜&♠ i ❝♦♥'✉♠❡& ✐♥ "❤❡ '❡❝♦♥❞ ♣❡&✐♦❞✿
{β − piI}+ {β −θSˆ
0
(p∗iS + x)f(x)dx−θRˆ
θS
(p∗iR + αx)f(x)dx−1ˆ
θR
p∗iL f(x)dx}
❋&♦♠ ♣&♦♣♦'✐"✐♦♥' ✶✳✹✳✷ ❛♥❞ ✶✳✹✳✶✱ "❤❡ ❡@✉✐❧✐❜&✐❛ ✐♥ ❜♦"❤ "❤❡ ❞✉♦♣♦❧② ❛♥❞ ❝♦♠♣❡"✐"✐✈❡ ❝❛'❡
❛&❡ '②♠♠❡"&✐❝❀ "❤✉' "❤❡ ❝♦♥"✐♥✉❛"✐♦♥ ✉"✐❧✐"② ✐♥ "❤❡ '❡❝♦♥❞ ♣❡&✐♦❞ ❞♦❡' ♥♦" ❞❡♣❡♥❞ ♦♥ "❤❡
✜&♠ ❝❤♦'❡♥ ✐♥ ♣❡&✐♦❞ ✶✳ ❍❡♥❝❡✱ ♦♥❧② "❤❡ ✜&'" ❜&❛❝❦❡" ✕ ✜&'"✕♣❡&✐♦❞ ♣❛②♦✛ ✕ ✐' ♠❛&❣✐♥❛❧ ❢♦&
"❤❡ ♣✉&❝❤❛'❡ ❞❡❝✐'✐♦♥✳ ■❢ piI > ♠✐♥{pjI}✱ "❤❡&❡ ❡①✐'"' ❛ ✜&♠ j "❤❛" ♦✛❡&' ❛ ❧♦✇❡& ✜&♠ ❛♥❞
✐' '"&✐❝"❧② ♣&❡❢❡&&❡❞ ❜② ❛❧❧ ❝♦♥'✉♠❡&'✳ ❖♥ "❤❡ ♦"❤❡& ❤❛♥❞✱ ✐❢ pi = ♠✐♥{pjI}✱ "❤❡ ❝♦♥'✉♠❡& ✐'
✐♥❞✐✛❡&❡♥" ❜❡"✇❡❡♥ ✜&♠ i ❛♥❞ ❛♥② ♦❢ "❤❡ ✜&♠' ❛❧'♦ ❝❤❛&❣✐♥❣ "❤❡ ♠✐♥✐♠✉♠ ♣&✐❝❡✳ ❚❤✉'✱ ❜②
✉♥✐❢♦&♠ "✐❡ ❜&❡❛❦✐♥❣✱ ❝♦♥'✉♠❡&' '♣❧✐" ❡✈❡♥❧② ❜❡"✇❡❡♥ "❤❡ ✜&♠'✳
■" &❡♠❛✐♥' ♦♥❧② "♦ '♦❧✈❡ "❤❡ ✐♥"&♦❞✉❝"♦&② ♣&✐❝✐♥❣ '"❛❣❡✳ ❖♥ "❤❡ ♦♥❡ ❤❛♥❞✱ ✐♥ "❤❡ ✜&'"
♣❡&✐♦❞ ♦♥❧② ✜&♠' ❝❤❛&❣✐♥❣ "❤❡ ❧♦✇❡'" ♣&✐❝❡ ✇✐❧❧ ♠❛❦❡ ♣♦'✐"✐✈❡ '❛❧❡'❀ ♠♦&❡♦✈❡&✱ "❤❡② ♦❜"❛✐♥
♣♦'✐"✐✈❡ ♣&♦✜"' ❢&♦♠ "❤❡✐& ❝♦♥'✉♠❡& ❜❛'❡ ✐♥ "❤❡ ♠❛"✉&❡ ♠❛&❦❡"✳ ❚❤✐' '✉❣❣❡'"' "❤❛" ✜&'"✕
♣❡&✐♦❞ ❝♦♠♣❡"✐"✐♦♥ '❤♦✉❧❞ ❜❡ ✜❡&❝❡✳ ❖♥ "❤❡ ♦"❤❡& ❤❛♥❞✱ "❤❡&❡ ✐' "❤❡ ✏♦✉"'✐❞❡ ♦♣"✐♦♥✑ ♦❢
❢♦&❣♦✐♥❣ ❝♦♥'✉♠❡&' ✐♥ "❤❡ ✜&'" ♣❡&✐♦❞ ❛♥❞ ❡♥❥♦②✐♥❣ '✇✐"❝❤✐♥❣ ♣&♦✜"' ✐♥ "❤❡ '❡❝♦♥❞ ♣❡&✐♦❞
♦♥❧②❀ "❤✐' '❡&✈❡' "♦ &❡'"&❛✐♥ ✜&'"✕♣❡&✐♦❞ ❝♦♠♣❡"✐"✐♦♥ ✇❤❡♥ '✇✐"❝❤✐♥❣ ♣&♦✜"' ❛&❡ ♣♦'✐"✐✈❡✳
❚❤❡'❡ ❝♦♥'✐❞❡&❛"✐♦♥' "❤✉' ❞❡"❡&♠✐♥❡ ✐♥"&♦❞✉❝"♦&② ♣&✐❝❡'✿
!♦♣♦$✐&✐♦♥ ✶✳✹✳✸✳ ❚❤❡ ✜$%&✕♣❡$✐♦❞ ♣$✐❝✐♥❣ ❡/✉✐❧✐❜$✐✉♠ ✐% ❝❤❛$❛❝&❡$✐%❡❞ ❜②
✶✳ ❋✐$%& ♣❡$✐♦❞ ♣$✐❝❡% ❛$❡ ❣✐✈❡♥ ❜② pII = Π∗,Si − Π∗,RLi ❢♦$ ❛❧❧ ✜$♠%
✷✳ ❈♦♥%✉♠❡$% ❡✈❡♥❧② %♣❧✐& ❜❡&✇❡❡♥ ✜$♠% ✐♥ &❤❡ ✜$%& ♣❡$✐♦❞
✸✳ ■♥&❡$&❡♠♣♦$❛❧ ♣$♦✜&% ❡/✉❛❧ Π∗,Si
▼♦$❡♦✈❡$✱ &❤❡ ❡/✉✐❧✐❜$✐✉♠ ✐% ♣❛②♦✛ ✉♥✐/✉❡✳
C$♦♦❢✳ ❚❤❡ ✜&♠✬' ♣&♦✜" ❢&♦♠ "❤❡ ✜&'"✕♣❡&✐♦❞ ♣❡&'♣❡❝"✐✈❡ ✐' ❣✐✈❡♥ ❜②
Πi =
piI +Π∗,RLi ✐❢ pIi < min{pIj}
1|min{pIj}|
{piI +Π∗,RLi }+
(
1− 1|min{pIj}|
)
Π∗,Si ✐❢ pIi = min{pIj}
Π∗,Si ♦"❤❡&✇✐'❡
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✶ ✷✺
"❡✢❡❝&✐♥❣ &❤❡ ❝❛,❡, ♦❢ ❡✐&❤❡" ❛&&"❛❝&✐♥❣ ❛❧❧ ❝♦♥,✉♠❡",✱ ,♦♠❡ ❝♦♥,✉♠❡", ♦" ♥♦ ❝♦♥,✉♠❡", ✐♥
&❤❡ ✜",&✕♣❡"✐♦❞✳
❈♦♥,✐❞❡" ✜",& &❤❡ ❝❛,❡ ✇✐&❤ N ≥ 3 ✜"♠,✳ ❚❤❡♥✱ ❢"♦♠ ♣"♦♣♦,✐&✐♦♥ ✶✳✹✳✷✱ Π∗,Si = 0 ❢♦" ❛❧❧
✜"♠,✳ ❲❤❡♥ piI = −Π∗,RLi ✱ &❤❡ ✜"♠✬, ❡?✉✐❧✐❜"✐✉♠ ♣"♦✜& ✐, ③❡"♦❀ &❤❡ ♣"♦✜& ❢"♦♠ ❞❡✈✐❛&✐♥❣ &♦
❛♥② ❤✐❣❤❡" ♣"✐❝❡ ✐, Π∗,Si = 0✱ ❛ ❞❡✈✐❛&✐♦♥ &♦ ❧♦✇❡"✐♥❣ &❤❡ ✐♥&"♦❞✉❝&♦"② ♣"✐❝❡ ❜② ǫ ❝❛♣&✉"❡,
&❤❡ ❡♥&✐"❡ ❡♥&✐"❡ ♠❛"❦❡&✱ ❜✉& "❡,✉❧&, ✐♥ ❛ ❧♦,, ♦❢ ǫ✱ ,♦ ,✉❝❤ ❛ ❞❡✈✐❛&✐♦♥ ✐, ❛❧,♦ ♥♦& ♣"♦✜&❛❜❧❡✳
❍❡♥❝❡ &❤❡ ❝❧❛✐♠❡❞ ,&"❛&❡❣✐❡, ❛"❡ ❛♥ ❡?✉✐❧✐❜"✐✉♠ ✐♥ &❤❡ ❝♦♠♣❡&✐&✐✈❡ ❝❛,❡✳
◆♦✇ ❝♦♥,✐❞❡" &❤❡ ❞✉♦♣♦❧② ❝❛,❡✳ ■♥ ❛ ,②♠♠❡&"✐❝ ❡?✉✐❧✐❜"✐✉♠✱ ❜♦&❤ ✜"♠, ❛"❡ ❝❤❛"❣✐♥❣ &❤❡
❧♦✇❡,& ♣"✐❝❡✳ ❍❡♥❝❡✱ ❢♦" ❛❜,❡♥❝❡ ♦❢ ♣"♦✜&❛❜❧❡ ♣"✐❝❡✕"❛✐,✐♥❣✱ ✇❡ ♠✉,& ❤❛✈❡ 1/2(piI +Π∗,RLi ) +
1/2Π∗,Si = Π∗,Si ❀ ,♦❧✈✐♥❣ ❢♦" &❤❡ ✐♥&"♦❞✉❝&♦"② ♣"✐❝❡ ②✐❡❧❞, &❤❡ ❝❧❛✐♠❡❞ ❝♦♥❞✐&✐♦♥✳
I❛②♦✛ ✉♥✐?✉❡♥❡,,✿ ❙✉♣♣♦,❡ &❤❡"❡ ✐, ❛ ✜"♠ ✇✐&❤ ♣❛②♦✛ ❣"❡❛&❡" &❤❛♥ Π∗,Si ✳ ❈❧❡❛"❧②✱ &❤✐,
✜"♠ ♠✉,& ❜❡ ♠❛❦✐♥❣ ♣♦,✐&✐✈❡ ,❛❧❡, ❛& ♣"✐❝❡ pIi > p∗Ii ❀ ❢♦" ,❛❧❡, &♦ ❜❡ ♣♦,✐&✐✈❡✱ ♥♦ ✜"♠ ,❤♦✉❧❞
❝❤❛"❣❡ ❛ ♣"✐❝❡ ❧♦✇❡" &❤❛♥ pIi ✳ ❚❤❡♥ ❡✐&❤❡" ✭❛✮ ❛❧❧ ♦&❤❡" ✜"♠, ❛"❡ ❝❤❛"❣✐♥❣ ♠♦"❡ &❤❛♥ pIi ✳ ■♥
&❤✐, ❝❛,❡✱ ❛♥② ♦❢ &❤❡ ♦&❤❡" ✜"♠ ❤❛, ❛ ♣"♦✜&❛❜❧❡ ❞❡✈✐❛&✐♦♥ &♦ ❧♦✇❡"✐♥❣ ♣"✐❝❡ pIi − ǫ✳ ❖" ✭❜✮✱
&❤❡"❡ ✐, ❛♥♦&❤❡" ✜"♠ ❝❤❛"❣✐♥❣ &❤❡ ,❛♠❡ ♣"✐❝❡ pIi ❛♥❞ ,❤❛"✐♥❣ &❤❡ ♠❛"❦❡& ✇✐&❤ ✜"♠ i✳ ■♥ &❤✐,
❝❛,❡✱ &❤❡ ♣"♦✜&❛❜❧❡ ❞❡✈✐❛&✐♦♥ ✐, ❢♦" ,❛✐❞ ✜"♠ &♦ ❧♦✇❡" ✐&, ♣"✐❝❡ ❜② ❛♥ ǫ✳
✶✳✺ ❙$%❛$❡❣✐❝ ❊✛❡❝$- ♦❢ ❘❡$❡♥$✐♦♥
❍♦✇ ❞♦ ❝❤❛♥❣❡, ✐♥ &❤❡ ❝♦,& ♦❢ ❝❧❛✐♠✐♥❣ "❡&❡♥&✐♦♥ ❛✛❡❝& ♠❛"❦❡& ❝♦♠♣❡&✐&✐♦♥❄ ❚❤✐, ?✉❡,&✐♦♥ ✐,
♦❢ ✐♥&❡"❡,& ✐♥ &❤❡ ❝❛,❡ ♦❢ ❞✉♦♣♦❧②✱ ❛, ✇❡ ❛❧"❡❛❞② ,❤♦✇❡❞ &❤❛& ✐♥ ❝♦♠♣❡&✐&✐✈❡ ♠❛"❦❡&, "❡&❡♥&✐♦♥
❞♦❡, ♥♦& ❛"✐,❡ ✐♥ ❡?✉✐❧✐❜"✐✉♠✳
❋✐",&✱ ✇❡ ❡,&❛❜❧✐,❤ &❤❛& &❤❡ "❡&❡♥&✐♦♥ ♠♦❞❡❧ ♥❡,&, &❤❡ ♠♦❞❡❧ ✇✐&❤ ✏♣✉"❡✑ ❜❡❤❛✈✐♦✉" ❜❛,❡❞
♣"✐❝❡ ❞✐,❝"✐♠✐♥❛&✐♦♥ ❛❧♦♥❣ &❤❡ ❧✐♥❡, ♦❢ ❈❤❡♥ ✭✶✾✾✼✮ ❛♥❞ ❚❛②❧♦" ✭✷✵✵✸✮ ❢♦" &❤❡ ❝❛,❡ ✇❤❡"❡
♣❛"❛♠❡&❡" α = 0✿
!♦♣♦$✐&✐♦♥ ✶✳✺✳✶✳ ❲❤❡♥ α = 0✱ %❤❡ ♣❛②♦✛ ✉♥✐-✉❡ ❡-✉✐❧✐❜0✐✉♠ ♦❢ %❤❡ ❣❛♠❡ ✐4 ❝❤❛0❛❝%❡0✐4❡❞
❛4 ❢♦❧❧♦✇4
✶✳ ■♥ %❤❡ ♠❛%✉0❡ ♠❛0❦❡%✱ ❝♦♥4✉♠❡04 ✇✐%❤ θ < θ∗S 4✇✐%❝❤ ❛♥❞ ♦%❤❡04 4%❛② ❧♦②❛❧ ✇✐%❤
0 =1− 2F (θ∗S)
f(θ∗S− θ∗S ✭✶✳✺✳✶✮
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✷✻ ❛②✐♥❣ ❈♦♥(✉♠❡,( -♦ ❙-❛②✿ ❘❡-❡♥-✐♦♥ ,✐❝✐♥❣ ❛♥❞ ▼❛,❦❡- ❈♦♠♣❡-✐-✐♦♥
✷✳ ▼❛$✉&❡ ♠❛&❦❡$ ♣&✐❝❡- ❛&❡ ❣✐✈❡♥ ❜②
1− F (θ∗S)
f(θ∗S)= p∗L = p∗R ✭✶✳✺✳✷✮
F (θ∗S)
f(θ∗S)= p∗S ✭✶✳✺✳✸✮
✸✳ ❈♦♥-✉♠❡&- ❡✈❡♥❧② -♣❧✐$ ❜❡$✇❡❡♥ ✜&♠- ✐♥ $❤❡ ✜&-$ ♣❡&✐♦❞
✹✳ ■♥$&♦❞✉❝$♦&② ♣&✐❝❡- -❛$✐-❢②
p∗I =F (θ∗S)
f(θ∗S)F (θ∗S)− 1− F (θ∗S)
f(θ∗S)
(1− F (θ∗S)
)✭✶✳✺✳✹✮
✺✳ ?❛②♦✛- ♦❢ ❛❧❧ ♣❧❛②❡&- ❝♦✐♥❝✐❞❡ ✇✐$❤ $❤❡ &❡❞✉❝❡❞ ❣❛♠❡ ✇❤❡&❡ $❤❡ &❡$❡♥$✐♦♥ ❛❝$✐♦♥ ✐-
❞❡❧❡$❡❞
?&♦♦❢✳ ❲❤❡♥ α = 0✱ ❛❧❧ ❝♦♥0✉♠❡30 ❝❤♦♦0❡ 4❤❡ ❝❤❡❛♣❡3 ♦❢ 4❤❡ ❧♦②❛❧✴3❡4❛✐♥❡❞ ♦✛❡30✿
θR =
1 ✐❢ pRi ≥ pLi
θS ♦4❤❡3✇✐0❡
✭✶✳✺✳✺✮
❚❤❡ ♠❛①✐♠✐0❛4✐♦♥ ♣3♦❜❧❡♠ ♦♥ 4❤❡ ♦✇♥ ❝♦♥0✉♠❡3 ❜❛0❡ 4❤❡♥ ❜❡❝♦♠❡0✿
♠❛①
pRi ,pLi
γi(1− F (θS))min{pRi , pLi }
✭✐✐✮ ❚❤✉0✱ 4❤❡ ♣❛②♦✛ ♦♥❧② ❞❡♣❡♥❞0 ♦♥ 4❤❡ 0♠❛❧❧❡3 ♦❢ 4❤❡ 4✇♦ ♣3✐❝❡0 ❛♥❞ ✇✐4❤♦✉4 ❧♦00 ♦❢
❣❡♥❡3❛❧✐4② ✇❡ ❝❛♥ 0❡4 4❤❡♠ ❡D✉❛❧✳ ❙♦❧✈✐♥❣ 4❤❡ ✜304 ♦3❞❡3✕❝♦♥❞✐4✐♦♥ 4❤❡♥ ②✐❡❧❞0 4❤❡ ❝❧❛✐♠❡❞
❧♦②❛❧✴3❡4❡♥4✐♦♥ ♣3✐❝❡ ❝♦♥❞✐4✐♦♥✳ ❚❤❡ ♣3✐❝✐♥❣ ❢♦3 0✇✐4❝❤✐♥❣ ❝♦♥0✉♠❡30 ✐0 ✉♥❝❤❛♥❣❡❞ ❢3♦♠
❧❡♠♠❛ ✶✳✹✳✼✳
✭✐✮ ❇② 0✉❜43❛❝✐♥❣ 4❤❡ ❝♦♥❞✐4✐♦♥0 ❢♦3 ♦♣4✐♠❛❧ 0✇✐4❝❤✐♥❣ ❛♥❞ ❧♦②❛❧ ♣3✐❝❡
✭✐✐✐✮✱ ✭✐✈✮ ❢♦❧❧♦✇ ❞✐3❡❝4❧② ❢3♦♠ ♣3♦♣♦0✐4✐♦♥ ✶✳✹✳✸
✭✈✮ ❇② ❞✐3❡❝4 ❝♦♠♣❛3✐0✐♦♥ ♦❢ ❡D✉✐❧✐❜3✐✉♠ 043❛4❡❣✐❡0✳
❚❤✉0✱ 0✐♥❝❡ ♦✉3 ♠♦❞❡❧ ✐0 ❝♦♥4✐♥✉♦✉0✱ ✇❡ ❝❛♥ ❝♦♥0✐❞❡3 ❝♦♠♣❛3❛4✐✈❡ 04❛4✐❝0 ❛4 α = 0
4♦ ✐♥✈❡04✐❣❛4❡ 4❤❡ ❡✛❡❝40 ♦❢ ✐♥43♦❞✉❝✐♥❣ 3❡4❡♥4✐♦♥✳ ▼♦3❡♦✈❡3✱ ♦✉3 ❝♦♠♣❛3❛4✐✈❡ 04❛4✐❝0 ❛3❡
♠♦♥♦4♦♥❡❀ 4❤✐0 ❛❧❧♦✇0 ✉0 4♦ ❡✈❛❧✉❛4❡ ❛❧0♦ 3❛4❤❡3 ❞✐0❝♦♥4✐♥✉♦✉0 ♣♦❧✐❝② ♠♦✈❡♠❡♥40 ✇❤❡3❡ α
✏❥✉♠♣0✑ ✐♥4♦ 4❤❡ ✐♥4❡3✐♦3✳
❆0 α 3✐0❡0✱ ✐♥0♣❡❝4✐♦♥ ♦❢ 4❤❡ ♣3✐❝✐♥❣ ❡D✉❛4✐♦♥ ✐♥ ♣3♦♣♦0✐4✐♦♥ ✶✳✹✳✶ 0❤♦✇0 ✉0 4❤❛4 4❤❡
❞❡♠❛♥❞ ❢♦3 0✇✐4❝❤✐♥❣ ❛♥❞ 3❡4❛✐♥❡❞ ♦✛❡30 ❜❡❝♦♠❡0 ♠♦3❡ ♣3✐❝❡ ❡❧❛04✐❝✱ ✇❤✐❧❡ 4❤❡ ❞❡♠❛♥❞ ❢♦3
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✶ ✷✼
"❤❡ ❧♦②❛❧ ♦✛❡* ❜❡❝♦♠❡. ❧❡.. ❡❧❛."✐❝✳ ■♥"✉✐"✐✈❡❧②✱ ❛. α→ 1✱ "❤❡ *❡"❡♥"✐♦♥ ♦✛❡* ❜❡❝♦♠❡. ❛ ❝❧♦.❡*
.✉❜."✐"✉"❡ ❢♦* .✇✐"❝❤✐♥❣ ❛♥❞ ❛ ♠♦*❡ ❞✐."❛♥" ♦♥❡ ❢♦* "❤❡ ❧♦②❛❧ ♦✛❡*✳ ❖♥❡ ♠❛② "❤✉. "❤✐♥❦ "❤❛"
"❤❡ .✇✐"❝❤✐♥❣ ❛♥❞ *❡"❡♥"✐♦♥ ♣*✐❝❡. ❢❛❧❧✳ ❋♦* "❤❡ ❧♦②❛❧ ♣*✐❝❡✱ "❤❡*❡ ❛*❡ "✇♦ ❡✛❡❝".✿ ✜*."✱ "❤❡
✐♥❝*❡❛.✐♥❣❧② ✐♥❡❧❛."✐❝ ❞❡♠❛♥❞ ❝❛❧❧. ❢♦* ❛ ❤✐❣❤❡* ♣*✐❝❡✳ ❙❡❝♦♥❞✱ "❤❡ ❢❛❧❧✐♥❣ *❡"❡♥"✐♦♥ ♣*✐❝❡ ❝❛❧❧.
❢♦* ❛ ❧♦✇❡* ♣*✐❝❡✳ ❉✉❡ "♦ "❤❡ ❧♦❣✕❝♦♥❝❛✈❡ "②♣❡ ❞✐."*✐❜✉"✐♦♥✱ "❤❡ ❧❛""❡* ❡✛❡❝" ❛❧✇❛②. ♦✉"✇❡✐❣❤.
"❤❡ ❢♦*♠❡*✳ ❚❤✉.✱ ✐♥ ❢❛❝"✱ *✐.✐♥❣ ❝♦." ♦❢ *❡"❡♥"✐♦♥ ❧❡❛❞. "♦ ❛❧❧ ♠❛"✉*❡ ♠❛*❦❡" ♣*✐❝❡. ❢❛❧❧✐♥❣✿
!♦♣♦$✐&✐♦♥ ✶✳✺✳✷✳ ■♥ $❤❡ ❞✉♦♣♦❧② ❝❛-❡✱ ❛❧❧ ♠❛$✉0❡ ♠❛0❦❡$ ♣0✐❝❡- ❛0❡ ❞❡❝0❡❛-✐♥❣ ✐♥ α✳
▼♦0❡♦✈❡0✱
dp∗R
dα< dp∗S
dα< dp∗L
dα< 0✱ $❤❛$ ✐-✱ $❤❡ 0❡$❡♥$✐♦♥ ♣0✐❝❡ ❢❛❧❧- -$0♦♥❣❡-$✱ ❢♦❧❧♦✇❡❞ ❜② $❤❡
-✇✐$❝❤✐♥❣ ♣0✐❝❡❀ $❤❡ ❡✛❡❝$ ♦♥ $❤❡ ❧♦②❛❧ ♣0✐❝❡ ✐- ✇❡❛❦❡-$✱ ❜✉$ -$✐❧❧ ✉♥❛♠❜✐❣✉♦✉-❧② ♥❡❣❛$✐✈❡✳
<0♦♦❢✳ ❋*♦♠ ♣*♦♣♦.✐"✐♦♥ ✶✳✹✳✶✱ ♣❛*" ✭✶✮✱ ✐" ✐. ❝❧❡❛* "❤❛" ♠❛*❣✐♥❛❧ ❝♦♥.✉♠❡* ❛*❡ ✜①❡❞ ✐♥❞❡♣❡♥✲
❞❡♥" ♦❢ α✳ ❚❤✉.✱ "♦ ✜♥❞ "❤❡ ♣*✐❝❡ ❡✛❡❝".✱ ✇❡ ❝❛♥ .✐♠♣❧② ❞✐✛❡*❡♥"✐❛"❡ "❤❡ ✐♠♣❧✐❝✐" ❢✉♥❝"✐♦♥.
❢♦* ❡J✉✐❧✐❜*✐✉♠ ♣*✐❝❡.✱ "*❡❛"✐♥❣ θ∗R ❛♥❞ θ∗S ❛. ❝♦♥."❛♥".✳ ❚❤✐. ②✐❡❧❞.
dp∗S
dα= −F (θ∗S)
f(θ∗S)
dp∗R
dα= −1− F (θ∗S)
f(θ∗S)
dp∗L
dα=
1− F (θ∗R)
f(θ∗R)− 1− F (θ∗S)
f(θ∗S)
❋*♦♠ ❧❡♠♠❛ ✶✳✹✳✽ ✇❡ ❤❛✈❡ "❤❛" 0 < F (θ∗S) < 12✳ ❍❡♥❝❡ ✐" ✐. ✐♠♠❡❞✐❛"❡ "❤❛"
dp∗S
dα< dp∗R
dα❀
❛♥❞ "❤❡ ♣*✐❝❡ ❡✛❡❝". ❛*❡ ."*✐❝"❧② ♥❡❣❛"✐✈❡✳ ❚♦ .❡❡ "❤❛" "❤❡ ❧♦②❛❧ ♣*✐❝❡ ✐. ❞❡❝*❡❛.✐♥❣✱ ♥♦"❡ "❤❛"
1−F (θ)f(θ)
✐. ❛ ."*✐❝"❧② ❞❡❝*❡❛.✐♥❣ ❢✉♥❝"✐♦♥✱ ❜② ❧♦❣✕❝♦♥❝❛✈✐"②✱ ❛♥❞ ❝♦♠❜✐♥❡ ✇✐"❤ θ∗S < θ∗R✳
❙✐♥❝❡ ❛❧❧ ♣*✐❝❡. ❢❛❧❧ ✐♥ "❤❡ ♠❛"✉*❡ ♠❛*❦❡"✱ ♣*♦✜". ♠✉." ❢❛❧❧ ❛. ✇❡❧❧✳ ■♥ ♣❛*"✐❝✉❧❛*✱ "❤❡
♣*♦✜". ❢*♦♠ .✇✐"❝❤✐♥❣ ❝♦♥.✉♠❡*. ❢❛❧❧✳ ❙✐♥❝❡ "❤❡ ✏*❡.❡*✈❛"✐♦♥ ♣*♦✜"✑ ❢*♦♠ .✇✐"❝❤✐♥❣ ❝♦♥.✉♠❡*.
❞❡"❡*♠✐♥❡. ✐♥"❡*"❡♠♣♦*❛❧ ♣*♦✜".✱ "❤❡.❡ ♣*♦✜". ❛*❡ ❢❛❧❧✐♥❣✿
!♦♣♦$✐&✐♦♥ ✶✳✺✳✸✳ ■♥ $❤❡ ❞✉♦♣♦❧② ❝❛-❡✱ ✐♥$❡0$❡♠♣♦0❛❧ ♣0♦✜$- ❛0❡ -$0✐❝$❧② ❞❡❝0❡❛-✐♥❣ ✐♥ α✳
<0♦♦❢✳ ❇② ♣*♦♣♦.✐"✐♦♥ ✶✳✹✳✸✱ ✐♥"❡*"❡♠♣♦*❛❧ ♣*♦✜". ♣*♦✜". ❡J✉❛❧ .✇✐"❝❤✐♥❣ ♣*♦✜". ✐♥ "❤❡ ♠❛✲
"✉*❡ ♠❛*❦❡"✳ ❉✐✛❡*❡♥"✐❛"✐♥❣ ✇✐"❤ *❡.♣❡❝" "♦ α✱
dΠ
dα= F (θ∗S)
dp∗S
dα= −F (θ∗S)2
f(θ∗S)< 0 ✭✶✳✺✳✻✮
✇❤❡*❡ "❤❡ .❡❝♦♥❞ ❡J✉❛❧✐"② ✐. ❢*♦♠ ♣*♦♣♦.✐"✐♦♥ ✶✳✺✳✷✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✷✽ ❛②✐♥❣ ❈♦♥(✉♠❡,( -♦ ❙-❛②✿ ❘❡-❡♥-✐♦♥ ,✐❝✐♥❣ ❛♥❞ ▼❛,❦❡- ❈♦♠♣❡-✐-✐♦♥
❚❤❡ ❝♦♠♣❛*❛+✐✈❡ .+❛+✐❝. ♦❢ +❤❡ ✐♥+*♦❞✉❝+♦*② ♣*✐❝❡ ♣♦.❡ ❛♥ ✐♥+❡*❡.+✐♥❣ ❝❤❛❧❧❡♥❣❡✳ ❚❤❡ ✐♥✲
+*♦❞✉❝+♦*② ♣*✐❝❡ ✐. ❞❡+❡*♠✐♥❡❞ ❜② +❤❡ ❞✐✛❡$❡♥❝❡ ❜❡+✇❡❡♥ .✇✐+❝❤✐♥❣ ❛♥❞ ❧♦②❛❧✴*❡+❛✐♥❡❞ ♣*♦✜+.
✐♥ +❤❡ ♠❛+✉*❡ ♠❛*❦❡+✳ ❈❧❡❛*❧②✱ ❜♦+❤ ❡①♣*❡..✐♦♥. ❛*❡ ❢❛❧❧✐♥❣✱ ❜✉+ ✇❤✐❝❤ ❡✛❡❝+ ❞♦♠✐♥❛+❡.❄ ■+
✐. .✉*♣*✐.✐♥❣❧② ❞✐✣❝✉❧+ +♦ ❣✐✈❡ ❛ ❞❡✜♥✐+❡ ❛♥.✇❡* +♦ +❤✐. D✉❡.+✐♦♥✳ ❚♦ ♣*♦❝❡❡❞ ❢✉*+❤❡* ✇✐+❤
+❤❡ ❛♥❛❧②.✐.✱ ✇❡ ✐♥+*♦❞✉❝❡ +❤❡ ❢♦❧❧♦✇✐♥❣ ❝♦♥❞✐+✐♦♥✿
❆!!✉♠♣%✐♦♥ ✸ ✭❲❡❧❧✕❇❡❤❛✈❡❞ ❈♦♥❞✐+✐♦♥✮✳ F (θ) ✐' '✉❝❤ *❤❛*
F (θ∗R) ≤ F (θ∗S)
f(θ∗S)θ∗R
❚❤❡ ✏✇❡❧❧✕❜❡❤❛✈❡❞ ❝♦♥❞✐+✐♦♥✑ ❡✛❡❝+✐✈❡❧② ♣❧❛❝❡. ❛ ❧♦✇❡* ❜♦✉♥❞ ♦♥ +❤❡ ♠❛.. ♦❢ ❧♦②❛❧ ❝♦♥✲
.✉♠❡*.✱ *❡D✉✐*❡❞ ❢♦* ❝♦♠♣❛*❛+✐✈❡ .+❛+✐❝. ❢*♦♠ ♥♦✇ ♦♥✳ ■+ ✐. ♥♦+ ♦✈❡*❧② *❡.+*✐❝+✐✈❡ ✕ ❢♦*
❡①❛♠♣❧❡✱ +❤❡ ✉♥✐❢♦*♠ ❞✐.+*✐❜✉+✐♦♥ .❛+✐.✜❡. ✐+❀ ♠♦*❡♦✈❡*✱ ✐♥ ♥✉♠❡*✐❝❛❧ .✐♠✉❧❛+✐♦♥.✱ ❛❧❧ .②♠✲
♠❡+*✐❝ ❇❡+❛ ❞✐.+*✐❜✉+✐♦♥. .❛+✐.❢② +❤✐. ❝♦♥❞✐+✐♦♥✳ ❍♦✇❡✈❡*✱ ❢✉*+❤❡* *❡.✉❧+. *❡♠❛✐♥ ❝♦♥❥❡❝+✉*❡
❛+ +❤✐. ♣♦✐♥+✳
❯♥❞❡* +❤✐. ❝♦♥❞✐+✐♦♥✱ +❤❡ ✜*.+✕♣❡*✐♦❞ ♣*✐❝❡ ✇✐❧❧ ♥♦+ *✐.❡ ❜② ♠♦*❡ +❤❛♥ +❤❡ ❧♦②❛❧ ♣*✐❝❡ ❢❛❧❧.✿
+,♦♣♦!✐%✐♦♥ ✶✳✺✳✹✳ ❯♥❞❡$ *❤❡ ✇❡❧❧✕❜❡❤❛✈❡❞ ❝♦♥❞✐*✐♦♥✱ ✜$'* ♣❡$✐♦❞ ♣$✐❝❡ $✐'❡' ✐♥ ❞✉♦♣♦❧② ❛$❡
❜♦✉♥❞❡❞ ❜②
dp∗I
dα≤ −dp∗L
dα7$♦♦❢✳ ❚❤❡ ✐♥+*♦❞✉❝+♦*② ♣*✐❝❡ ✐. ❣✐✈❡♥ ❜②
p∗Ii = Π∗,Si − Π∗,RLi =
θSˆ
0
p∗Sf(x)dx−θRˆ
θS
p∗Rf(x)dx−1ˆ
θR
p∗Lf(x)dx
✇❤❡*❡ +❤❡ .❡❝♦♥❞ ❡D✉❛❧✐+② ✐. ❢*♦♠ .✉❜.+✐+✉+✐♥❣ ❡D✉✐❧✐❜*✐✉♠ ♣*♦❞✉❝❡* ❛♥❞ ❝♦♥.✉♠❡* ❜❡❤❛✈✐♦✉*
❢*♦♠ ♣*♦♣♦.✐+✐♦♥ ✶✳✹✳✶✳ ❉✐✛❡*❡♥+✐❛+✐♥❣ ✇✐+❤ *❡.♣❡❝+ +♦ +❤❡ ♣❛*❛♠❡+❡*✱
dp∗Iidα
=
θSˆ
0
dp∗S
dαf(x)dx−
θRˆ
θS
dp∗R
dαf(x)dx−
1ˆ
θR
dp∗L
dαf(x)dx
= F (θS)
(dp∗S
dα+
dp∗R
dα
)
︸ ︷︷ ︸
−1/f(θ∗S)
−F (θR)
(dp∗R
dα− dp∗L
dα
)
︸ ︷︷ ︸
−(θR)
− dp∗L
dα︸ ︷︷ ︸
(−)
= F (θR)θR −F (θS)
f(θ∗S)︸ ︷︷ ︸
<0
−dp∗L
dα
✇❤❡*❡ +❤❡ ✜*.+ ❡D✉❛❧✐+② ❛♣♣❧✐❡. ▲❡✐❜♥✐+③✬ *✉❧❡✱ *❡❝♦❣♥✐.✐♥❣ +❤❡ ❢❛❝+ +❤❛+ ♠❛*❣✐♥❛❧ ❝♦♥✲
.✉♠❡*. ❛*❡ ✜①❡❞✳ ❲❡ +❤❡♥ .♦❧✈❡ +❤❡ ✐♥+❡❣*❛❧ ❛♥❞ ✜♥❛❧❧② ✉.❡ +❤❡ ✇❡❧❧✕❜❡❤❛✈❡❞ ❝♦♥❞✐+✐♦♥✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✶ ✷✾
❋✐❣✉&❡ ✶✳✹✿ ❊✛❡❝/0 ♦❢ ❘❡/❡♥/✐♦♥ ✐♥ /❤❡ ▼❛/✉&❡ ▼❛&❦❡/ ✭❯♥✐❢♦&♠ ❊①❛♠♣❧❡✮
✶✳✺✳✶ ❯♥✐❢♦(♠ ❊①❛♠♣❧❡
❋♦& ❝♦♥❝&❡/❡♥❡00✱ ❝♦♥0✐❞❡& ❛♥ ❡①❛♠♣❧❡ ✇✐/❤ ❛ ✉♥✐❢♦&♠ ❞✐0/&✐❜✉/✐♦♥ ♦♥ [0, 1]✳ ❋&♦♠ ❧❡♠♠❛0
✶✳✹✳✻ ❛♥❞ ✶✳✹✳✼✱ ✇❡ ♦❜/❛✐♥ ♣❛&❛♠❡/&✐❝ ❡①♣&❡00✐♦♥0 ❢♦& /❤❡ ❜❡0/✕&❡0♣♦♥0❡ ❢✉♥❝/✐♦♥0✿
p∗S =pR
2
p∗R =1− α + pS
2
p∗L =1 + pS
2
❚❤✉0✱ ✐♥ /❤❡ ✉♥✐❢♦&♠ ❝❛0❡✱ /❤❡ ❜❡0/ &❡0♣♦♥0❡ ❧♦②❛❧ ❛♥❞ 0✇✐/❝❤✐♥❣ ♣&✐❝❡0 ❞♦ ♥♦/ ❞❡♣❡♥❞ ♦♥
/❤❡ ♣❛&❛♠❡/❡&✳ ❚❤✐0 ❢❛❝✐❧✐/❛/❡0 ❛ ❣&❛♣❤✐❝❛❧ ❛♥❛❧②0✐0 ♦❢ /❤❡ ❡✛❡❝/ ♦❢ &❡/❡♥/✐♦♥ ♣&✐❝✐♥❣✳ ■♥ ✜❣✉&❡
❄❄✱ /❤❡ ✐♥/❡&0❡❝/✐♦♥ ♦❢ ❧✐♥❡0 L∗ ❛♥❞ S∗✱ ❞❡♥♦/❡❞ E1✱ ✐0 /❤❡ ❡K✉✐❧✐❜&✐✉♠ ♣&✐❝❡ ♣&♦✜❧❡ ✇❤❡♥
&❡/❡♥/✐♦♥ ✐0 ✏❜❛♥♥❡❞✑✱ ♦& ❛❧/❡&♥❛/✐✈❡❧② /❤❡ ❡✛♦&/ /♦ 0❡❝✉&❡ &❡/❡♥/✐♦♥ ✐0 ③❡&♦✳ ❈♦♥0✐❞❡& ♥♦✇ ❛
0✐/✉❛/✐♦♥ ✇❤❡&❡ α > 0✳ ❚❤❡♥ /❤❡ ✐♠♠❡❞✐❛/❡ ❡✛❡❝/ ✐0 ❛ ❞♦✇♥✇❛&❞0 0❤✐❢/ ✐♥ /❤❡ &❡/❡♥/✐♦♥ ❜❡0/
&❡0♣♦♥0❡ ❢✉♥❝/✐♦♥✱ R∗❀ /❤❡&❡ ✐0 ♥♦ ❝❤❛♥❣❡ ✐♥ /❤❡ ❜❡0/ &❡0♣♦♥0❡ ❧♦②❛❧ ❛♥❞ 0✇✐/❝❤✐♥❣ ❢✉♥❝/✐♦♥0✱
❛ 0♣❡❝✐✜❝ ❢❡❛/✉&❡ ♦❢ /❤❡ ✉♥✐❢♦&♠ ❡①❛♠♣❧❡✳ ❚❤❡ ❡K✉✐❧✐❜&✐✉♠ ✇✐/❤ &❡/❡♥/✐♦♥ ✐0 &❡❛❝❤❡❞ ❛/ E2✱
❛♥❞ /❤❡ ❧♦②❛❧ ♣&✐❝❡ ✐0 L2✳ ❚❤✉0✱ ❛❧❧ ♠❛/✉&❡ ♠❛&❦❡/ ♣&✐❝❡0 ❛&❡ ❜❡❧♦✇ /❤❡ ✐♥✐/✐❛❧ ❧❡✈❡❧ E1❀ /❤✐0
❢❡❛/✉&❡✱ ❛0 ✇❡ ❤❛✈❡ ❞✐0❝✉00❡❞✱ ✐0 ♠♦&❡ ❣❡♥❡&❛❧✳
❇② 0✉❜0/✐/✉/✐♦♥ ✐♥/♦ ♣&♦♣♦0✐/✐♦♥ ✶✳✺✳✹✱ ✇❡ ✜♥❞ /❤❛/ /❤❡ ❡K✉✐❧✐❜&✐✉♠ ✜&0/ ♣❡&✐♦❞ ♣&✐❝❡ ✐0
p∗I = − (4−α)12
✱ ✇❤✐❝❤ ✐0 ✐♥❝&❡❛0✐♥❣ ✐♥ /❤❡ ♣❛&❛♠❡/❡&✳ ❚❤✉0✱ /❤❡ ❡✛❡❝/ ♦❢ ♠♦&❡ ✜❡&❝❡ ♠❛/✉&❡
♠❛&❦❡/ ❝♦♠♣❡/✐/✐♦♥ ✐0 ❝♦✉♥/❡&❛❝/❡❞ ❜② ✇❡❛❦❡& ✜&0/✕♣❡&✐♦❞ ❝♦♠♣❡/✐/✐♦♥✳
✶✳✻ ❲❡❧❢❛(❡
❘❡/❡♥/✐♦♥✱ ✐♥ ❛♥ ✐♠♣❡&❢❡❝/❧② ❝♦♠♣❡/✐/✐✈❡ 0❡//✐♥❣✱ ❝❡&/❛✐♥❧② ❤❛&♠0 ✜&♠ ♣&♦✜/❛❜✐❧✐/②✱ ❛0 ✇❡
❤❛✈❡ ❛❧&❡❛❞② ❞✐0❝✉00❡❞❀ ②❡/ /❤❡ ♦✈❡&❛❧❧ ✇❡❧❢❛&❡ ❡✛❡❝/0 &❡♠❛✐♥ /♦ ❜❡ ❛❞❞&❡00❡❞✳ ❋✐&0/✱ ♦❜0❡&✈❡
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✸✵ ❛②✐♥❣ ❈♦♥(✉♠❡,( -♦ ❙-❛②✿ ❘❡-❡♥-✐♦♥ ,✐❝✐♥❣ ❛♥❞ ▼❛,❦❡- ❈♦♠♣❡-✐-✐♦♥
"❤❛" ❞✉❡ "♦ "❤❡ ♠♦❞❡❧ ❤❛✈✐♥❣ ✐♥❡❧❛/"✐❝ ❞❡♠❛♥❞✱ ✇❡ ❞♦ ♥♦" ❛❧❧♦✇ ❢♦4 "❤❡ ♣♦//✐❜✐❧✐"② "❤❛" ♣4✐❝❡
❢❛❧❧/ ❝❛♥ 4❛✐/❡ ✇❡❧❢❛4❡ ❜② ✐♥❝4❡❛/✐♥❣ ❝♦♥/✉♠♣"✐♦♥✳ ❆/ ❙"♦❧❡ ✭✷✵✵✼✮ ❡♠♣❤❛/✐/❡/✱ ♦♥❡ ♠✉/"
"❤✉/ "❛❦❡ ❝❛4❡ "♦ ✐♥"❡4♣4❡" ✇❡❧❢❛4❡ 4❡/✉❧"/✱ ❜❡❛4✐♥❣ ✐♥ ♠✐♥❞ "❤❛" "❤❡ ♠♦❞❡❧ ✉♥❞❡4❡/"✐♠❛"❡/
♣♦//✐❜❧❡ ❣❛✐♥/ ✇❤❡♥ "❤❡4❡ ❛4❡ ❣❛✐♥/ "♦ ❜❡ ❤❛❞ ❜② ✐♥❝4❡❛/✐♥❣ ♠❛4❦❡" ❝♦✈❡4❛❣❡✳ ■♥ ♦✉4 ♠♦❞❡❧✱
/♦❝✐❛❧ ✇❡❧❢❛4❡ ♠✉/" ❢❛❧❧ ✇❤❡♥ 4❡"❡♥"✐♦♥ ✐/ ❛❧❧♦✇❡❞✿ ❝♦♥/✉♠❡4/ /♣❡♥❞ /♦♠❡ ❡✛♦4" "♦ /❡❝✉4❡ "❤❡
4❡"❡♥"✐♦♥ ♦✛❡4✱ ❛♥❞ "❤✐/ ❡✛♦4" ✐/ ❞❡❛❞ ✇❡✐❣❤" ❧♦//✳ ❇✉" ✉♥❞❡4 "❤❡ ✇❡❧❧✕❜❡❤❛✈❡❞ ❝♦♥❞✐"✐♦♥✱
❝♦♥/✉♠❡4 /✉4♣❧✉/ 4✐/❡/✳ ■♥ ❢❛❝"✱ "❤❡ 4✐/❡ ✐/ /✉✣❝✐❡♥"❧② /"4♦♥❣ "❤❛" ❡❛❝❤ ❝♦♥/✉♠❡4 "②♣❡ ✐/
❜❡""❡4 ♦✛✳
❈♦♥/✉♠❡4 /✉4♣❧✉/ ✐/ ❞❡✜♥❡❞ ❛/ "❤❡ ❡①♣❡❝"❡❞ ✉"✐❧✐"② ♦❢ ❛ ❝♦♥/✉♠❡4 ❣✐✈❡♥ ❡I✉✐❧✐❜4✐✉♠
/"4❛"❡❣✐❡/✿
CS(α) = β − p∗I(α) + β −θ∗Sˆ
0
(p∗S(α) + x)f(x)dx ✭✶✳✻✳✶✮
−θ∗Rˆ
θ∗S
(p∗R(α) + αx)f(x)dx−1ˆ
θ∗R
p∗L(α)f(x)dx
= 2β − Π∗S(α)− Φ(α) ✭✶✳✻✳✷✮
✇❤❡4❡ Π∗S(α) ✐/ ♣4♦❞✉❝❡4 /✉4♣❧✉/✱ ❛/ ❞✐/❝✉//❡❞ ❛❧4❡❛❞②✱ ❛♥❞ Φ(α) ✐/ "❤❡ ❞❡❛❞ ✇❡✐❣❤" ❧♦//
♦❢ /✇✐"❝❤✐♥❣ ❡✛♦4"✿
Φ(α) =
θ∗Sˆ
0
xf(x)dx+
θ∗Rˆ
θ∗S
αxf(x)dx
❍❡♥❝❡✱ ✐♥❞❡❡❞✱ /♦❝✐❛❧ ✇❡❧❢❛4❡ ✐/ ❛✛❡❝"❡❞ ❜② 4❡"❡♥"✐♦♥ ♦♥❧② "❤4♦✉❣❤ /✇✐"❝❤✐♥❣ ❡✛♦4"✱ ❛♥❞
❢❛❧❧/ ❛/ "❤❡ ♣❛4❛♠❡"❡4 4✐/❡/✿
W (α) = CS(α) + Π∗S(α) = 2β − Φ(α)
!♦♣♦$✐&✐♦♥ ✶✳✻✳✶✳ ❯♥❞❡' (❤❡ ✇❡❧❧✕❜❡❤❛✈❡❞ ❝♦♥❞✐(✐♦♥✱ ❝♦♥1✉♠❡' 1✉'♣❧✉1 ✐1 1('✐❝(❧② ✐♥❝'❡❛1✲
✐♥❣ ✐♥ α❀ ♠♦'❡♦✈❡'✱ ❛1 α '✐1❡1✱ ❡❛❝❤ (②♣❡ ✐1 ✇❡❛❦❧② ❜❡((❡' ♦✛
;'♦♦❢✳ ✳
✶✳ ❚❤❡ ❞❡4✐✈❛"✐✈❡ ♦❢ ❝♦♥/✉♠❡4 /✉4♣❧✉/ ✐/
dCS
dα= −dp∗I
dα− F (θ∗S)
dp∗S
dα− [F (θ∗R)− F (θ∗S)]
dp∗S
dα− (1− F (θ∗R))
dp∗L
dα
≥ p∗L
dα− p∗L
dα= 0
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✶ ✸✶
✇❤❡%❡ &❤❡ '❡❝♦♥❞ ❡,✉❛❧✐&② ❢♦❧❧♦✇' ❢%♦♠ ♣%♦♣♦'✐&✐♦♥ ✶✳✺✳✷ ❛♥❞ &❤❡ &❤✐%❞ ❢%♦♠ ♣%♦♣♦'✐&✐♦♥
✶✳✺✳✹✳
✷✳ ❋✐%'&✱ ❢♦% '✇✐&❝❤✐♥❣ ❝♦♥'✉♠❡%'✱ ✇❡ ❤❛✈❡
du∗dα|S = −dp∗I
dα− dp∗S
dα>
dp∗L
dα− p∗S
dα> 0
❢♦% ❧♦②❛❧ ❝♦♥'✉♠❡%'✱ &❤❡ %❡'✉❧& ✐' ✐♠♠❡❞✐❛&❡✳ ■& %❡♠❛✐♥' &♦ ❝❤❡❝❦ ❢♦% %❡&❛✐♥❡❞ ❝♦♥'✉♠❡%'✿
du∗dα|R = −dp∗I
dα− dp∗R
dα− θ
≥(1− F (θ∗R)
f(θ∗R)− 1− F (θ∗S)
f(θ∗S)
)
+1− F (θ∗S)
f(θ∗S)− θ
≥ 0
✇❤❡%❡ &❤❡ ❧❛'& ✐♥❡,✉❛❧✐&② ❢♦❧❧♦✇' ❜❡❝❛✉'❡ &❤❡ ❤✐❣❤❡'&✕❝♦'& %❡&❛✐♥❡❞ ❝♦♥'✉♠❡% ✐' ❛& θ∗R✳
❚❤❡ ❝♦♥'✉♠❡% ❣❛✐♥' ❢%♦♠ %❡&❡♥&✐♦♥ ❛%❡ ♥♦& ❡✈❡♥❧② ❞✐'&%✐❜✉&❡❞✳ ■♥❞❡❡❞✱ '✇✐&❝❤✐♥❣ ❝♦♥✲
'✉♠❡%' ❜❡♥❡✜& &❤❡ ♠♦'& ❢%♦♠ %❡&❡♥&✐♦♥❀ %❡&❛✐♥❡❞ ❝♦♥'✉♠❡%' ❡♥❥♦② &❤❡ ❧❛%❣❡'& ♣%✐❝❡ ❢❛❧❧✱
❜✉& ❛❧'♦ ❜❡❛% &❤❡ ✐♥❝%❡❛'❡❞ ❝♦'& ♦❢ ❡✛♦%& ❛' α %✐'❡'✳ ❋✐♥❛❧❧②✱ ❧♦②❛❧ ❝♦♥'✉♠❡%' ❡♥❥♦② ❛ ♠✐❧❞
✐♥&❡%&❡♠♣♦%❛❧ ♣%✐❝❡ ❢❛❧❧✱ ❛❧❧ ✉♥❞❡% &❤❡ ✇❡❧❧✕❜❡❤❛✈❡❞ ❝♦♥❞✐&✐♦♥✳
■♥ ❝♦♥❝❧✉'✐♦♥✱ &❤❡ ♠♦❞❡❧ ♣%♦✈✐❞❡' ❧✐&&❧❡ '✉♣♣♦%& ♦♥ ❝♦♥'✉♠❡% ✇❡❧❢❛%❡ ❣%♦✉♥❞' ❢♦% ❜❛♥♥✐♥❣
%❡&❡♥&✐♦♥ ❛❝&✐✈✐&②✳
✶✳✼ ❉✐%❝✉%%✐♦♥
✶✳✼✳✶ #$✐❝❡ ▼❛*❝❤✐♥❣
■♥ ♣%✐❝❡ ❞✐'❝%✐♠✐♥❛&✐♦♥✱ ✜%♠' ❝❤♦♦'❡ ♣%✐❝❡' ❛' ❛ ❜❡'& %❡♣❧② &♦ ♦♣♣♦♥❡♥&✬' ♣%✐❝❡'✳ ❖♥ &❤❡ ♦&❤❡%
❤❛♥❞✱ ✐♥ ♠♦❞❡❧' ♦❢ ♣%✐❝❡ ♠❛&❝❤✐♥❣ ❣✉❛%❛♥&❡❡' ✭'✉❝❤ ❛' ❙❛❧♦♣ ✭✶✾✽✻✮✮✱ ✜%♠' ❝❛♥ ❝♦♠♠✐& ❡①
❛♥&❡ &♦ ✭♣❛%& ♦❢✮ &❤❡✐% ♣%✐❝✐♥❣ '&%❛&❡❣②✳ ❚❤✐' ✐' ✇✐&❤ &❤❡ ✐♥&❡♥& &♦ ❝❤❛♥❣❡ &❤❡ ♣%✐❝✐♥❣ ✐♥❝❡♥&✐✈❡'
♦❢ &❤❡ ♦♣♣♦♥❡♥&✱ ❛♥❞ ❤❛' ❜❡❡♥ '❤♦✇♥ &♦ ❜❡ ❛♥&✐✕❝♦♠♣❡&✐&✐✈❡ ✐♥ '♦♠❡ '&❛&✐❝ ♠♦❞❡❧'✿ ❜❡❝❛✉'❡
❛ ❧♦✇❡% ♣%✐❝❡ ✐' ✐♥❡✈✐&❛❜❧② ♠❛&❝❤❡❞✱ ❛ ✜%♠ ❝❛♥♥♦& ❣❛✐♥ ♠❛%❦❡& '❤❛%❡ ❜② %❡❞✉❝✐♥❣ ✐&' ♣%✐❝❡✳
❚❤✉' ♣%✐❝❡ ♠❛&❝❤✐♥❣ ♠❛② '✉'&❛✐♥ ❝♦❧❧✉'✐♦♥
✷
✳ ❚❤❡ ❇%✐&✐'❤ %❡❣✉❧❛&♦% '✉❣❣❡'&❡❞ ✐♥ ❖❢❝♦♠ ✭✷✵✶✵✮
&❤❛& ❛ '✐♠✐❧❛% ✐♥&✉✐&✐♦♥ ♠❛② ❛♣♣❧② &♦ %❡&❡♥&✐♦♥ ♦✛❡%'✳ ■♥ &❤✐' '❡❝&✐♦♥✱ ✇❡ ❜%✐❡✢② ❡①♣❧♦%❡ &❤❡
✐♠♣❧✐❝❛&✐♦♥' ♦❢ ♣%✐❝❡ ♠❛&❝❤✐♥❣ ✐♥ &❤❡ ❝♦♥&❡①& ♦❢ ♦✉% ♠♦❞❡❧✳
✷
❆❧"❤♦✉❣❤ "❤❡(❡ (❡♠❛✐♥- ❛ "❤❡♦(❡"✐❝❛❧ ❛♥❞ ❡♠♣✐(✐❝❛❧ ❞❡❜❛"❡ ✭❆(❜❛"-❦❛②❛ ❡" ❛❧✳✱ ✷✵✵✹✮ ♦♥ "❤✐-
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✸✷ ❛②✐♥❣ ❈♦♥(✉♠❡,( -♦ ❙-❛②✿ ❘❡-❡♥-✐♦♥ ,✐❝✐♥❣ ❛♥❞ ▼❛,❦❡- ❈♦♠♣❡-✐-✐♦♥
❙✉♣♣♦&❡ ❜❡❢♦*❡ +❤❡ &+❛*+ ♦❢ +❤❡ &❡❝♦♥❞ ♣❡*✐♦❞✱ ❡❛❝❤ ✜*♠ ❤❛& +❤❡ ♦♣+✐♦♥ +♦ ❝♦♠♠✐+ +♦
&❡++✐♥❣ +❤❡ *❡+❡♥+✐♦♥ ♣*✐❝❡ ❡6✉❛❧ +♦ +❤❡ &✇✐+❝❤✐♥❣ ♣*✐❝❡✳ ■♥ &✉❜❣❛♠❡& ✇❤❡*❡ +❤❡ ✜*♠ ✐&
❝♦♠♠✐++❡❞✱ +❤❡ ♣*✐❝❡ ♠❛+❝❤✐♥❣ ❧♦❣✐❝ ❛♣♣❧✐❡&✿ ❢♦* ❛♥② &✇✐+❝❤✐♥❣ ♣*✐❝❡✱ +❤❡ ❝♦♠♣❡+✐+♦* ✇✐❧❧ ♥♦+
♠❛❦❡ ♣♦&✐+✐✈❡ &❛❧❡&❀ &♦ ❛♥② &✇✐+❝❤✐♥❣ ♣*✐❝❡ ❝❛♥ ❜❡ &✉♣♣♦*+❡❞ ✐♥ ❡6✉✐❧✐❜*✐✉♠✳ ❚❤❡ ❧♦②❛❧ ♣*✐❝❡
✐& ❛ ❜❡&+ *❡&♣♦♥&❡ +♦ ✇❤❛+❡✈❡* &✇✐+❝❤✐♥❣ ♣*✐❝❡ ✐& ❝❤♦&❡♥ ✐♥ ❡6✉✐❧✐❜*✐✉♠✳ ■♥ &✉❜❣❛♠❡& ✇❤❡*❡
+❤❡ ✜*♠& ❝❤♦♦&❡& ♥♦+ +♦ ❝♦♠♠✐+✱ +❤❡ ♠❛+✉*❡ ♠❛*❦❡+ ❛& ❛♥❛❧②&❡❞ ❜❡❢♦*❡ ✉♥❢♦❧❞&✳
■♥ &✉❝❤ ❛♥ ❡①+❡♥❞❡❞ ♠♦❞❡❧✱ ✇❡ ❝❛♥ ❤❛✈❡ ❡6✉✐❧✐❜*✐❛ ✇❤❡*❡ *❡+❡♥+✐♦♥ ✐& ♣*✐❝❡ ♠❛+❝❤✐♥❣✳
❍♦✇❡✈❡*✱ +❤❡&❡ ❡6✉✐❧✐❜*✐❛ ❛*❡ ♠♦"❡ ❞❡&✐*❛❜❧❡ ❢*♦♠ ❜♦+❤ ❛ ❝♦♥&✉♠❡* ❛♥❞ &♦❝✐❛❧ ✇❡❧❢❛*❡ ♣❡*✲
&♣❡❝+✐✈❡✳ ❚❤✐& ❛*✐&❡& ❜❡❝❛✉&❡✱ ✉♥❞❡* ♣*✐❝❡ ♠❛+❝❤✐♥❣✱ +❤❡ ❝♦♥+✐♥✉❛+✐♦♥ ♣*♦✜+ Π∗S ✐& ③❡*♦❀
❤❡♥❝❡ ✜*&+ ❝♦♠♣❡+✐+✐♦♥ ✐& &✉✣❝✐❡♥+❧② ✜❡*❝❡ &♦ +❤❛+ ❝♦♥&✉♠❡*& ❝❛♥ &❡❝✉*❡ +❤❡ ❡♥+✐*❡ &✉*♣❧✉&✳
❚❤✉&✱ ❛❧❧♦✇✐♥❣ ❢♦* ♣*✐❝❡ ♠❛+❝❤✐♥❣ ❡✈❡♥ &+*❡♥❣+❤❡♥& ♦✉* *❡&✉❧+& *❡❣❛*❞✐♥❣ +❤❡ ♣*♦✕❝♦♠♣❡+✐+✐✈❡
❡✛❡❝+& ♦❢ *❡+❡♥+✐♦♥✱ ❜✉+ ❢♦* +❤❡ ♦♣♣♦&✐+❡ *❡❛&♦♥ ✭✜❡*❝❡ ✜*&+✕♣❡*✐♦❞ ❝♦♠♣❡+✐+✐♦♥✮ ❛& ♦♣♣♦&❡❞
+♦ +❤❡ ♣*✐❝❡ ❞✐&❝*✐♠✐♥❛+✐♦♥ ♠♦❞❡❧✳
❊①❛♠♣❧❡ ✶✳✼✳✶ ✭❊6✉✐❧✐❜*✐✉♠ ✇✐+❤ K*✐❝❡ ▼❛+❝❤✐♥❣✮✳ ■♥ &❤❡ (✉❜❣❛♠❡ ✇❤❡"❡ &❤❡ ✜"♠ ❝❤♦♦(❡(
♣"✐❝❡ ♠❛&❝❤✐♥❣✱ &❤❡ ♣"♦✜& ♦♥ (✇✐&❝❤✐♥❣ ❝♦♥(✉♠❡"(✱ θR = 0 ❢♦" ❛❧❧ p✱ ♣"❡❝✐(❡❧② ❞✉❡ &♦ &❤❡
❣✉❛"❛♥&❡❡✳ ❍❡♥❝❡✱ ❛♥② (✇✐&❝❤✐♥❣ ♣"✐❝❡ ✐( ❛ ❜❡(& "❡(♣♦♥(❡✳ ❋♦" ❡①✐(&✐♥❣ ❝♦♥(✉♠❡"(✱ &❤❡ ♣"♦❜❧❡♠
❜❡❝♦♠❡(
♠❛① [1− F (θR)]piL + [F (θR)− F (θS)]p
iR
= [1− F (θR)]piL + [F (θR)− 0]pi
S
✇❤✐❝❤ ②✐❡❧❞( &❤❡ (❛♠❡ ❜❡(& "❡(♣♦♥(❡ ❡①♣"❡((✐♦♥ piL∗(piS) = α 1−F (θR)
f(θR)+ pi
S✉(✐♥❣ &❤❡ (&❡♣(
❛( ✐♥ ❧❡♠♠❛ ✶✳✹✳✻✳
❍❡♥❝❡ ✇❡ ♠❛② ❤❛✈❡ ❛♥ ❡?✉✐❧✐❜"✐✉♠ ✇❤❡"❡✱ ❢♦" ❡①❛♠♣❧❡✱ piL∗ = β✱piS∗
= piL∗−1(β) ✉♥❞❡"
♣"✐❝❡ ♠❛&❝❤✐♥❣✳ ❚❤✐( ❛((✉"❡( &❤❡ ♠♦♥♦♣♦❧② ♣"♦✜& &♦ &❤❡ (❡❧❧❡"✱ ✇❤✐❝❤ ✐( ❜❡&&❡" &❤❛♥ ❛"❝❤✐✈❡❞
✉♥❞❡" ♣"✐❝❡ ❞✐(❝"✐♠✐♥❛&✐♦♥✳ ❍❡♥❝❡✱ &❤❡ ✜"♠ ✇✐❧❧ ❝❤♦♦(❡ ♣"✐❝❡ ♠❛&❝❤✐♥❣✳ ❇✉& &❤❡♥ &❤❡ ✜"(&✕
♣❡"✐♦❞ ♣"✐❝❡ ❡?✉❛❧( −Π∗2,RL✱ (✐♥❝❡ (✇✐&❝❤✐♥❣ ♣"♦✜&( ❛"❡ ③❡"♦✳ ❙♦ ✐♥&❡"&❡♠♣♦"❛❧ ♣"✐❝❡( ❛"❡ ③❡"♦✱
❝♦♥(✉♠❡"( ❡①&"❛❝& ❛❧❧ &❤❡ (✉"♣❧✉(✱ ❛♥❞ ❢✉❧❧ ❡✣❝✐❡♥❝② ✐( ❛❝❤✐❡✈❡❞ (✐♥❝❡ &❤❡"❡ ✐( ♥♦ (✇✐&❝❤✐♥❣✳
❚❤✉(✱ ❛❧❧♦✇✐♥❣ ❢♦" ♣"✐❝❡ ♠❛&❝❤✐♥❣ ❞♦❡( ♥♦& ✇❡❛❦❡♥ ♦✉" "❡(✉❧&( ❛❜♦✉& "❡&❡♥&✐♦♥ ❜❡✐♥❣ ♣"♦✕
❝♦♠♣❡&✐&✐✈❡✳
❖♥ &❤❡ ♦&❤❡" ❤❛♥❞✱ &❤❡"❡ ♠❛② ❜❡ ❡?✉✐❧✐❜"✐❛ ✇❤❡"❡ ✐♥ &❤❡ ♣"✐❝❡ ♠❛&❝❤✐♥❣ ❝♦♥&✐♥✉❛&✐♦♥✱
(✇✐&❝❤✐♥❣ ♣"✐❝❡( ❛"❡ ❧♦✇ ✕ (❛② ③❡"♦✳ ❚❤❡♥✱ &❤❡ ✜"♠ ✇♦✉❧❞ ♥♦& ❝❤♦♦(❡ &♦ ❝♦♠♠✐&✱ ❛♥❞ &❤❡
❡?✉✐❧✐❜"✐✉♠ ♦✉&❝♦♠❡( ❝♦""❡(♣♦♥❞ &♦ &❤❡ ♠♦❞❡❧ ✇✐&❤♦✉& ♣"✐❝❡ ♠❛&❝❤✐♥❣✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✶ ✸✸
✶✳✼✳✷ ▼②♦♣✐❝ ❈♦♥,✉♠❡0,
❚❤#♦✉❣❤♦✉' '❤❡ ♠♦❞❡❧✱ ✇❡ #❡.✉✐#❡❞ ❝♦♥2✉♠❡#2 '♦ ❤❛✈❡ ❛ ❤✐❣❤ ❞❡❣#❡❡ ♦❢ #❛'✐♦♥❛❧✐'②❀ ✐♥ ♣❛#✲
'✐❝✉❧❛#✱ ❝♦♥2✉♠❡#2 ❛#❡ ✇❡❧❧✕✐♥❢♦#♠❡❞ ❛♥❞ ❝♦##❡❝'❧② ❛♥'✐❝✐♣❛'❡ '❤❛' #❡'❡♥'✐♦♥ ♦✛❡#2 ✇✐❧❧ ❜❡
♠❛❞❡✳ ■♥ '❤❡ ✜#2' ♣❡#✐♦❞✱ ❝♦♥2✉♠❡#2 ❛♥'✐❝✐♣❛'❡ '❤❛' '❤❡ ✏❜❛#❣❛✐♥✑ ♣#✐❝❡2 ✐♥ '❤❡ ✜#2' ♣❡#✐♦❞
❛#❡ ❢♦❧❧♦✇❡❞ ❜② ✏#✐♣✕♦✛2✑ ✐♥ '❤❡ ♠❛'✉#❡ ♠❛#❦❡'✱ '♦ ✉2❡ '❤❡ '❡#♠✐♥♦❧♦❣② ♦❢ '❤❡ ❋❛#❡❧❧ 2✉#✈❡②✳
❍❡♥❝❡ ✐' ✐2 ✐♠♣♦#'❛♥' '♦ ❛2❦ ❤♦✇ '❤❡ ❝♦♥❝❧✉2✐♦♥2 ✇♦✉❧❞ ❜❡ ❛✛❡❝'❡❞ ✐❢ ❝♦♥2✉♠❡#2 ❢❡❧❧ 2❤♦#' ♦❢
'❤✐2 #❛'❤❡# 2'#✐❝' ❜❡♥❝❤♠❛#❦✳
❲❡ ♥♦✇ ✐♥'#♦❞✉❝❡ ❛ #❛'❤❡# 2'#♦♥❣ ❢♦#♠ ♦❢ ♠②♦♣✐❛ ✐♥'♦ '❤❡ ♠♦❞❡❧✳ ▲❡' ✉2 ❛22✉♠❡ '❤❛'
❝♦♥2✉♠❡#2 ✐♥ '❤❡ ♠❛'✉#❡ ♠❛#❦❡' ❞♦ ♥♦' ❛♥'✐❝✐♣❛'❡ '❤❛' #❡'❡♥'✐♦♥ ♦✛❡#2 ✇✐❧❧ ❜❡ ♠❛❞❡❀ '❤✉2✱
❛ ❝♦♥2✉♠❡# ✜#2' ❞❡❝✐❞❡2 ✇❤❡'❤❡# '♦ 2✇✐'❝❤✱ ❜❛2❡❞ ♦♥ ❝♦♥2✐❞❡#❛'✐♦♥2 ♦❢ ❧♦②❛❧ ❛♥❞ 2✇✐'❝❤✐♥❣
♣#✐❝❡2✳ ❚❤❡ ♠❛#❣✐♥❛❧ ❝♦♥2✉♠❡# ✐2 '❤✉2 ❜❡'✇❡❡♥ 2✇✐'❝❤✐♥❣ ❛♥❞ ❧♦②❛❧✱ ❛♥❞ ❤❛2 '②♣❡ θSL =
piL − piS✳ ❈♦♥2✉♠❡#2 ✇✐'❤ ❧♦✇❡# '②♣❡ '❤❡♥ 2✇✐'❝❤ ❛♥❞ ❛#❡ ✏2✉#♣#✐2❡❞✑ '♦ #❡❝❡✐✈❡ ❛ #❡'❡♥'✐♦♥
♦✛❡#✳ ❚❤❡ ♦✛❡# ✇✐❧❧ ❜❡ ❛❝❝❡♣'❡❞ ✐❢ β − piR − αθ > β − piS− θ❀ ❤❡♥❝❡ '❤❡#❡ ✐2 ❛ ♠❛#❣✐♥❛❧
❝♦♥2✉♠❡# θSR =piR−p
iS
1−α✳ ■♥ '❤❡ ✐♥'#♦❞✉❝'♦#② ♣❡#✐♦❞✱ ❝♦♥2✉♠❡#2 ❜❛2❡ '❤❡✐# ♣✉#❝❤❛2❡ ❞❡❝✐2✐♦♥2
♦♥❧② ♦♥ '❤❡ ♣#✐❝❡2 ♦✛❡#❡❞ '❤❛' ♣❡#✐♦❞ ❛♥❞ ❞♦ ♥♦' '❛❦❡ ✐♥'♦ ❛❝❝♦✉♥' '❤❡ ❝♦♥'✐♥✉❛'✐♦♥ ✉'✐❧✐'②
♦❢ ❜❡✐♥❣ ❧♦❝❦❡❞✕✐♥ ✐♥ '❤❡ 2❡❝♦♥❞ ♣❡#✐♦❞✳
❚❤✐2 ❧❡❛❞2 '♦ ❛ #❡✈✐2❡❞ ♣❛②♦✛ ❢✉♥❝'✐♦♥ ❢♦# '❤❡ ✜#♠✬2 ♦✇♥ ❝♦♥2✉♠❡# ❜❛2❡✿
♠❛①
pRi ,pLi
γi{[1− F (θSL)]piL + F (θSL)F (θSR|θ < θSL)p
iR}
2✳'✳ β − pLi ≥ β − pSi− θ ❢♦# θ ∈ [θR, 1] ✭L❈✮
β − pRi − αθ ≥ β − pSi− θ ❢♦# θ ∈ [θS, θR] ✭L❈✮
❚❤❡ ❛22♦❝✐❛'❡❞ ❜❡2' #❡2♣♦♥2❡ ❢✉♥❝'✐♦♥2 ❛#❡
p∗Li =1− F (θSL)
f(θSL)
p∗Ri = (1− α)1− F (θSR)
f(θSR)
❇② ❝♦♠♣❛#✐2♦♥ ✇✐'❤ ❧❡♠♠❛ ✶✳✹✳✻✱ ✐' ✐2 ❛♣♣❛#❡♥' '❤❛' '❤❡#❡ ✐2 ❛♥ ✉♣✇❛#❞2 2❤✐❢' ✐♥ '❤❡ ❧♦②❛❧
❜❡2' #❡2♣♦♥2❡ ❢✉♥❝'✐♦♥ ❛♥❞ ♥♦ ❝❤❛♥❣❡ ✐♥ '❤❡ #❡'❡♥'✐♦♥ ❜❡2' #❡2♣♦♥2❡ ❢✉♥❝'✐♦♥✳ ❍♦✇❡✈❡#✱ ❢♦#
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✸✹ ❛②✐♥❣ ❈♦♥(✉♠❡,( -♦ ❙-❛②✿ ❘❡-❡♥-✐♦♥ ,✐❝✐♥❣ ❛♥❞ ▼❛,❦❡- ❈♦♠♣❡-✐-✐♦♥
"✇✐❝❤✐♥❣ ❝♦♥"✉♠❡-"✱ ✇❡ ❤❛✈❡
♠❛①
pSi
F (θSL)F (θSR|θ < θSL)pSi
"✳3✳ β − pLi ≥ β − pSi− θ ❢♦- θ ∈ [θR, 1] ✭6❈✮
β − pRi − αθ ≥ β − pSi− θ ❢♦- θ ∈ [θS, θR] ✭6❈✮
✇❤✐❝❤ ❛❣❛✐♥✱ ②✐❡❧❞" ❛♥ ✉♥❝❤❛♥❣❡❞ ❜❡"3✕-❡"♣♦♥"❡ ❢✉♥❝3✐♦♥ ✈✐"✕❛✕✈✐" 3❤❡ -❛3✐♦♥❛❧ ❝❛"❡✿
p∗Si = αF (θSR)
f(θSR)
■♥ 3❤❡ ✜-"3 ♣❡-✐♦❞✱ ♠②♦♣✐❛ ♦❜✈✐♦✉"❧② ❞♦❡" ♥♦3 ♣❧❛② ❛ -♦❧❡ "✐♥❝❡ 3❤❡ ❝♦♥3✐♥✉❛3✐♦♥ ✉3✐❧✐3✐❡"
♦❢ ❜✉②✐♥❣ ❛-❡ ❡B✉❛❧ ❜❡3✇❡❡♥ ✜-♠" ✭"❡❡ ❞✐"❝✉""✐♦♥ ✐♥ ❋❛--❡❧❧ ❛♥❞ ❑❧❡♠♣❡-❡- ✭✷✵✵✼✮✮✱ "♦ 3❤❡
✐♥3-♦❞✉❝3♦-② ♣-✐❝❡ ✐" "3✐❧❧ ❞❡3❡-♠✐♥❡❞ ❜② 3❤❡ ❞✐✛❡-❡♥❝❡ ❜❡3✇❡❡♥ "✇✐3❝❤✐♥❣ ❛♥❞ ❧♦②❛❧✴-❡3❡♥3✐♦♥
♣-♦✜3✳ ❍❡♥❝❡ ✇❡ ❝❛♥ ❝♦♥❝❧✉❞❡ 3❤❛3 ♠②♦♣✐❛ ❤❛" ♦♥❧② ♠✐❧❞ ✐♠♣❛❝3" ♦♥ ♦✉- -❡"✉❧3"✿ ❚❤❡
♠❛3✉-❡ ♠❛-❦❡3 "✇✐3❝❤✐♥❣ ❛♥❞ -❡3❡♥3✐♦♥ ♣-✐❝❡" ❛-❡ ✉♥❛✛❡❝3❡❞❀ 3❤❡ ❧♦②❛❧ ♣-✐❝❡ ✐" ❣❡♥❡-❛❧❧② ❛3 ❛
❤✐❣❤❡- ❧❡✈❡❧ 3❤❛♥ ✉♥❞❡- ❢♦-✇❛-❞✕❧♦♦❦✐♥❣ ❝♦♥"✉♠❡-"✱ ❜✉3 "3✐❧❧ ❞❡❝-❡❛"✐♥❣ ✐♥ α ✭❞✉❡ 3♦ "3-❛3❡❣✐❝
❝♦♠♣❧❡♠❡♥3❛-✐3② ✇✐3❤ 3❤❡ "✇✐3❝❤✐♥❣ ♣-✐❝❡✱ ✇❤✐❝❤ ✐" ❞❡❝-❡❛"✐♥❣✮✳
✶✳✼✳✸ ❚❤❡ ❘♦❧❡ ♦❢ ❈♦♥-✉♠❡0 ❍❡2❡0♦❣❡♥❡✐2②
❚❤❡ ❝♦-❡ ♠♦❞❡❧ ♦❢ 3❤❡ ♣❛♣❡- ❢♦❝✉"❡" ♦♥ 3❤❡ ❝❛"❡ ✇❤❡-❡ ❡✛♦-3 ❝♦"3" ❢♦❧❧♦✇ "♦♠❡ ❞✐"3-✐❜✉3✐♦♥
♦♥ 3❤❡ ✉♥✐3 ✐♥3❡-✈❛❧✳ ❲❤✐❧❡ ✐3 ✐" ❝❧❡❛- 3❤❛3 ❤❡3❡-♦❣❡♥❡✐3② ✐" ❝-✉❝✐❛❧ ✕ ✐❢ 3❤❡ ❞✐"3-✐❜✉3✐♦♥ ✇❡-❡
❞❡❣❡♥❡-❛3❡ ❛3 ❛ ♣♦✐♥3✱ 3❤❡ ♠♦❞❡❧ ✇♦✉❧❞ "✐♠♣❧② ❤❛✈❡ "✇✐3❝❤✐♥❣ ♣-✐❝❡" ❛3 ♠❛-❣✐♥❛❧ ❝♦"3✱ ❧♦②❛❧
♣-✐❝❡" ❛♥❞ 3❤❡ "✇✐3❝❤✐♥❣ ❝♦"3 ❛♥❞ ✐♥3-♦❞✉❝3♦-② ♣-✐❝❡" "❡3 3♦ "❡3 ✐♥3❡-3❡♠♣♦-❛❧ ♣-♦✜3" 3♦ ③❡-♦✱
✇✐3❤ ♥♦ ❜❛"✐" ❢♦- -❡3❡♥3✐♦♥ ♣-✐❝✐♥❣ ✕ ✐3 -❡♠❛✐♥" ✐♥3❡-❡"3✐♥❣ 3♦ ❛"❦ ✇❤✐❝❤ ❢♦"♠ ♦❢ ❤❡3❡-♦❣❡♥❡✐3②
-❡❛❧❧② ❛✛❡❝3" ♣-✐❝❡"✳
❚♦ ✐♥✈❡"3✐❣❛3❡ 3❤✐" B✉❡"3✐♦♥✱ ✇❡ ❢♦❧❧♦✇ ❇♦✉❝❦❛❡-3 ❡3 ❛❧✳ ✭✷✵✶✵✮ ❛♥❞ ❝♦♥"✐❞❡- ❛ ❝♦♥3✐♥✉♦✉"
✉♥✐❢♦-♠ ❞✐"3-✐❜✉3✐♦♥ ♦♥ [e, e]✱ ✇❤❡-❡ 0 < 2e < e✳ ❚❤❡ ❧❛33❡- ✐♥❡B✉❛❧✐3② ❛""✉-❡" 3❤❛3 3❤❡
❞✐"3-✐❜✉3✐♦♥ ❤❛" "✉✣❝✐❡♥3 ❞✐"♣❡-"✐♦♥ ❢♦- ❛♥ ❡B✉✐❧✐❜-✐✉♠ ✇✐3❤ ♣-✐❝❡ ❞✐"❝-✐♠✐♥❛3✐♦♥ 3♦ ❡①✐"3✳
❋✐-"3✱ "✉❜"3✐3✉3❡ 3❤❡ ❡①♣-❡""✐♦♥" ♦❢ ✉♥✐❢♦-♠ ❞❡♥"✐3② ✐♥3♦ ✐♥3❡-3❡♠♣♦-❛❧ ♣-♦✜3" ♦❢ 3❤❡
❞✉♦♣♦❧② ❝❛"❡✿
Π∗S = (1− α)(e− 2e)2
9✭✶✳✼✳✶✮
❋♦- 3❤❡ ❝❛"❡ ♦❢ α = 0✱ 3❤❡ ❡①♣-❡""✐♦♥ ❝♦✐♥❝✐❞❡" ✇✐3❤ ❇♦✉❝❦❛❡-3 ❡3 ❛❧✳ ✭✷✵✶✵✮✳ ❚❤❡ ❢✉♥❞❛♠❡♥3❛❧
✐♥"✐❣❤3 ❤❡-❡ ✐" 3❤❛3 ❛ ♠❡❛♥✕♣"❡)❡"✈✐♥❣ )♣"❡❛❞✱ ✇❤❡-❡ e ✐" ✐♥❝-❡❛"❡❞ ❜② 3❤❡ "❛♠❡ ❛♠♦✉♥3 ❛" e
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✶ ✸✺
❞❡❝%❡❛'❡' %❛✐'❡' ♣%♦✜,'❀ ,❤❡ ✐♥,✉✐,✐♦♥ ❜❡✐♥❣ ,❤❛, ♠♦%❡ ❤❡,❡%♦❣❡♥❡✐,② %❡',%❛✐♥' ,❤❡ ✐♥❝❡♥,✐✈❡'
♦❢ ❡✐,❤❡% ✜%♠ ,♦ ❝✉, ♣%✐❝❡'✳ ▲❡'' ✐♥,✉✐,✐✈❡❧②✱ ❛ %❛✐'❡ ✐♥ ,❤❡ ♠❡❛♥ ❡✛♦%, ❝♦',✱ ❜✉, ❦❡❡♣✐♥❣
❞✐'♣❡%'✐♦♥ ❝♦♥',❛♥,✱ ❡❞✉❝❡% ♣%♦✜,'✿ ❛, ,❤❡ ♠❛%❣✐♥✱ ✐, ❝♦♠❡' ♠♦%❡ ❛,,%❛❝,✐✈❡ ,♦ ✜❣❤, ❢♦%
'✇✐,❝❤✐♥❣ ❝♦♥'✉♠❡%'✱ ❛♥❞ ,❤✉' ,❤❡%❡ ✐' ♣%✐❝❡ ♣%❡''✉%❡✳
❆' %❡,❡♥,✐♦♥ ✐' ✐♥,%♦❞✉❝❡❞ ✕ '♦ α ✐' ♥♦♥✕③❡%♦ ✕ ,❤❡ ❢❛❧❧ ✐♥ ✐♥❞✉',%② ♣%♦✜,' ✐' ❧❛%❣❡% ,❤❡
❣%❡❛,❡% ,❤❡ ❤❡,❡%♦❣❡♥❡✐,② ✐♥ ❡✛♦%, ❝♦',✳ ▼♦%❡♦✈❡%✱ ✐, ✐' ❡❛'✐❧② '❡❡♥ ,❤❛, ,❤❡ ❤✐❣❤❡% ✜%♠
♣%♦✜,' ❛%❡ ✐♥ ,❤❡ ❛❜'❡♥❝❡ ♦❢ %❡,❡♥,✐♦♥✱ ,❤❡ ❣%❡❛,❡% ✇♦✉❧❞ ❜❡ ,❤❡ ❛''♦❝✐❛,❡❞ ♣%♦✜, ❢❛❧❧' ✇❤❡♥
%❡,❡♥,✐♦♥ ✐' ✐♥,%♦❞✉❝❡❞✳ ❋✐♥❛❧❧②✱ ❞✐%❡❝,❧② %❡❧❡✈❛♥, ❢♦% ♦✉% ♣✉%♣♦'❡' ✐' ,❤❡ ✐♥,❡%❛❝,✐♦♥ ♦❢
❝♦♥'✉♠❡% ❤❡,❡%♦❣❡♥❡✐,② ❛♥❞ ,❤❡ ✐♠♣❛❝, ♦❢ %❡,❡♥,✐♦♥✳ ❚❤❡ %❡❧❡✈❛♥, ❡①♣%❡''✐♦♥ ❜❡✐♥❣✿
dpRidα
= −2b− a
3
❍❡♥❝❡✱ ❢♦% ❣✐✈❡♥ α✱ ♠♦%❡ ❝♦♥'✉♠❡% ❤❡,❡%♦❣❡♥❡✐,② ❧❡❛❞' ,♦ ❛ ',❡❡♣❡% ❞%♦♣ ✐♥ ♣%✐❝❡'❀ ❤♦✇❡✈❡%✱
,❤❡ ❢✉♥❝,✐♦♥❛❧ ❢♦%♠ ♦❢ ,❤❡ ❤❡,❡%♦❣❡♥❡✐,② ✐' ❞✐✛❡%❡♥, ❢%♦♠ ,❤❡ ❝❛'❡ ♦❢ ♣%♦✜,' ❛♥❛❧②'❡❞ ❛❜♦✈❡✳
✶✳✽ ❈♦♥❝❧✉)✐♦♥
❚❤✐# ♣❛♣❡' #(✉❞✐❡❞ (❤❡ ✐♠♣❛❝( ♦❢ '❡(❡♥(✐♦♥ ♣'✐❝✐♥❣ ♦♥ ♠❛'❦❡( ❝♦♠♣❡(✐(✐♦♥✱ ✉#✐♥❣ ❛♥ ✐♥(❡'(❡♠✲
♣♦'❛❧ ♠♦❞❡❧ ♦❢ ♣'✐❝❡✕❞✐#❝'✐♠✐♥❛(✐♦♥✳ ❚♦ ❞♦ #♦✱ ✇❡ ❝♦♠❜✐♥❡❞ ❡①✐#(✐♥❣ ♠♦❞❡❧# ♦❢ ❜❡❤❛✈✐♦✉'✕
❜❛#❡❞ ♣'✐❝❡ ❞✐#❝'✐♠✐♥❛(✐♦♥ ✭❇❇=❉✮ ✇✐(❤ #❡❝♦♥❞✕❞❡❣'❡❡ ♣'✐❝❡ ❞✐#❝'✐♠✐♥❛(✐♦♥✳ ❲❤❡♥ #❡((✐♥❣
(❤❡ '❡(❡♥(✐♦♥ ♣'✐❝❡✱ ✜'♠# (❤✉# ❢❛❝❡ (✇♦ ❝♦♥#✐❞❡'❛(✐♦♥#✿ ❛( (❤❡ ❧♦✇❡' ♠❛'❣✐♥✱ #♦♠❡ ❝♦♥#✉♠❡'#
#✇✐(❝❤ (♦ (❤❡ ❝♦♠♣❡(✐(✐♦♥✱ '❡#✉❧(✐♥❣ ✐♥ ❛ '❡✈❡♥✉❡ ❧♦## ✭♣❛'(✐❝✐♣❛(✐♦♥ ❝♦♥#('❛✐♥(✮❀ ❛( (❤❡ ✉♣♣❡'
♠❛'❣✐♥✱ #♦♠❡ ❝♦♥#✉♠❡'# (❤❛( ♣'❡✈✐♦✉#❧② ♣✉'❝❤❛#❡❞ (❤❡ '❡(❡♥(✐♦♥ ♦✛❡' #✇✐(❝❤ (♦ ❜❡❝♦♠❡ ❧♦②❛❧
❝♦♥#✉♠❡'#✱ ♣❛②✐♥❣ ♠♦'❡ ✭✐♥❝❡♥(✐✈❡✕❝♦♠♣❛(✐❜✐❧✐(② ❝♦♥#('❛✐♥(✮✳
❚❤❡ ♠♦❞❡❧ #❤♦✇❡❞ (❤❛( '❡(❡♥(✐♦♥ ♣'✐❝✐♥❣ ✐# ❛ ♣❤❡♥♦♠❡♥♦♥ ♦❢ ✐♠♣❡'❢❡❝(❧② ❝♦♠♣❡(✐(✐✈❡
♠❛'❦❡(#✿ ✐♥ ❛ ❝♦♠♣❡(✐(✐✈❡ #❡((✐♥❣✱ ✜'♠# ❞♦ ♥♦( ❣❛✐♥ ❢'♦♠ ✐♥('♦❞✉❝✐♥❣ #✉❝❤ ♦✛❡'# #✐♥❝❡✱
❛'♦✉♥❞ (❤❡ ❡F✉✐❧✐❜'✐✉♠ ♣'✐❝❡✱ (❤❡ ❣❛✐♥# ❢'♦♠ ✏#❛✈✐♥❣✑ ❝♦♥#✉♠❡'# ❡①❛❝(❧② ❜❛❧❛♥❝❡ (❤❡ ❧♦## ✐♥
'❡✈❡♥✉❡ ❢'♦♠ ❧♦②❛❧ ❝♦♥#✉♠❡'# (❤❛( ♦♣♣♦'(✉♥✐#(✐❝❛❧❧② ❝❧❛✐♠ (❤❡ '❡(❡♥(✐♦♥ ♦✛❡' ✭❜✉(✱ ✐♥ (❤❡
❝♦✉♥(❡'✲❢❛❝(✉❛❧✱ ✇♦✉❧❞ ♥♦( ❤❛✈❡ #✇✐(❝❤❡❞✮✳
❍♦✇❡✈❡'✱ ✐♥ ❛♥ ✐♠♣❡'❢❡❝(❧② #❡((✐♥❣✱ '❡(❡♥(✐♦♥ ♣'✐❝❡# ❛'❡ ❛♥ ❡F✉✐❧✐❜'✐✉♠ ♣❤❡♥♦♠❡♥♦♥✳
❲❡ #❤♦✇❡❞ (❤❛(✱ ❛❧(❤♦✉❣❤ (❤❡ ♠❛## ♦❢ ❝♦♥#✉♠❡'# ❝❧❛✐♠✐♥❣ '❡(❡♥(✐♦♥ ✐# '❡❧❛(✐✈❡❧② #♠❛❧❧✱ ♦♥❝❡
'❡(❡♥(✐♦♥ ♣'✐❝❡# ❛'❡ ✐♥('♦❞✉❝❡❞✱ ❛❧❧ ♣'✐❝❡# ✐♥ (❤❡ ♠❛(✉'❡ ♠❛'❦❡( ❢❛❧❧✳ ❚❤✐# ♦❝❝✉'# ❜❡❝❛✉#❡ ♦♥❝❡
❛ ✜'♠ ✐♥('♦❞✉❝❡# '❡(❡♥(✐♦♥ ♣'✐❝❡#✱ (❤❡ ❝♦♠♣❡(✐(♦' '❡#♣♦♥❞# (❤'♦✉❣❤ ❛ ❧♦✇❡' #✇✐(❝❤✐♥❣ ♣'✐❝❡❀
(❤❡ '❡#✉❧(✐♥❣ ♣'✐❝❡ ❢❛❧❧ ♣✉(# ♣'❡##✉'❡ ♦♥ (❤❡ ❧♦②❛❧ ♣'✐❝❡ ❛# ✇❡❧❧✱ ❛♥❞ ✕ ❣✐✈❡♥ ♦✉' ❛##✉♠♣(✐♦♥
♦❢ ❛ ❧♦❣✕❝♦♥❝❛✈❡ ❞✐#('✐❜✉(✐♦♥ ✕ ✐# #✉✣❝✐❡♥( (♦ ❝❛✉#❡ ❛❧❧ ♠❛(✉'❡ ♠❛'❦❡( ♣'✐❝❡# (♦ ❢❛❧❧✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✸✻ ❛②✐♥❣ ❈♦♥(✉♠❡,( -♦ ❙-❛②✿ ❘❡-❡♥-✐♦♥ ,✐❝✐♥❣ ❛♥❞ ▼❛,❦❡- ❈♦♠♣❡-✐-✐♦♥
❚❤❡ ♠♦❞❡❧ ♣*❡❞✐❝-. ❛ ❢❛❧❧ ✐♥ ✜*♠ ♣*♦✜-❛❜✐❧✐-② ✇❤❡♥ *❡-❡♥-✐♦♥ ✐. ✐♥-*♦❞✉❝❡❞✳ ▼♦*❡♦✈❡*✱
*❡-❡♥-✐♦♥ *❡❞✉❝❡. .♦❝✐❛❧ ✇❡❧❢❛*❡ ❞✉❡ -♦ -❤❡ ✐♥❝*❡❛.❡❞ ❞❡❛❞✲✇❡✐❣❤- ❧♦.. ❢*♦♠ ❝❧❛✐♠✐♥❣ *❡-❡♥-✐♦♥✳
❍♦✇❡✈❡*✱ ❛. ✇❡ ❞✐.❝✉..❡❞✱ -❤❡ .♦❝✐❛❧ ✇❡❧❢❛*❡ *❡.✉❧-. ❤❛✈❡ ❧✐♠✐-❛-✐♦♥.✳ ❋✐♥❛❧❧②✱ ✉♥❞❡* ❛♥ ❛❞❞❡❞
*❡❣✉❧❛*✐-② ❝♦♥❞✐-✐♦♥✱ ✐- ❝❛♥ ❜❡ .❤♦✇♥ -❤❛- *❡-❡♥-✐♦♥ .-*✐❝-❧② ✐♠♣*♦✈❡. ❝♦♥.✉♠❡* ✇❡❧❢❛*❡✿ ❡❛❝❤
❝♦♥.✉♠❡* ✐. ❜❡--❡* ♦✛ ✇❤❡♥ *❡-❡♥-✐♦♥ ✐. ✐♥-*♦❞✉❝❡❞✱ ❜❡❝❛✉.❡ -❤❡ ♠❛-✉*❡ ♠❛*❦❡- ❣❛✐♥. ❛*❡
.✉✣❝✐❡♥-❧② ❧❛*❣❡ *❡❧❛-✐✈❡ -♦ -❤❡ ❛❞✈❡*.❡ ❡✛❡❝- ❢*♦♠ *✐.✐♥❣ ✐♥-*♦❞✉❝-♦*② ♣*✐❝❡.✳
❍❊❘❊
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❇✐❜❧✐♦❣&❛♣❤②
❆!❜❛$%❦❛②❛✱ ▼✳✱ ❍✈✐✐❞✱ ▼✳✱ ❙❤❛✛❡!✱ ●✳✱ ✷✵✵✹✳ ❖♥ $❤❡ ✐♥❝✐❞❡♥❝❡ ❛♥❞ ✈❛!✐❡$② ♦❢ ❧♦✇✲♣!✐❝❡
❣✉❛!❛♥$❡❡%✳ ❏♦✉!♥❛❧ ♦❢ ▲❛✇ ❛♥❞ ❊❝♦♥♦♠✐❝% ✹✼✱ ✸✵✼✕✺✽✾✳
❆!♠%$!♦♥❣✱ ▼✳✱ ❱✐❝❦❡!%✱ ❏✳✱ ✷✵✵✶✳ ❈♦♠♣❡$✐$✐✈❡ ♣!✐❝❡ ❞✐%❝!✐♠✐♥❛$✐♦♥✳ ❘❆◆❉ ❏♦✉!♥❛❧ ♦❢ ❊❝♦✲
♥♦♠✐❝%✱ ✺✼✾✕✻✵✺✳
❇❡!❣%$!♦♠✱ ❚✳✱ ❇❛❣♥♦❧✐✱ ▼✳✱ ✷✵✵✺✳ ▲♦❣✲❝♦♥❝❛✈❡ ♣!♦❜❛❜✐❧✐$② ❛♥❞ ✐$% ❛♣♣❧✐❝❛$✐♦♥%✳ ❊❝♦♥♦♠✐❝
$❤❡♦!② ✷✻✱ ✹✹✺✕✹✻✾✳
❇♦✉❝❦❛❡!$✱ ❏✳✱ ❉❡❣!②%❡✱ ❍✳✱ U!♦✈♦♦%$✱ ❚✳✱ ✷✵✶✵✳ ❊♥❤❛♥❝✐♥❣ ♠❛!❦❡$ ♣♦✇❡! ❜② !❡❞✉❝✐♥❣ %✇✐$❝❤✲
✐♥❣ ❝♦%$%✳ ❊❝♦♥♦♠✐❝% ▲❡$$❡!% ✶✵✾ ✭✷✮✱ ✶✸✶✕✶✸✸✳
❈❤❡♥✱ ❨✳✱ ✶✾✾✼✳ U❛②✐♥❣ ❝✉%$♦♠❡!% $♦ %✇✐$❝❤✳ ❏♦✉!♥❛❧ ♦❢ ❊❝♦♥♦♠✐❝% ✫ ▼❛♥❛❣❡♠❡♥$ ❙$!❛$❡❣②
✻ ✭✹✮✱ ✽✼✼✕✽✾✼✳
❈❤❡♥✱ ❨✳✱ ❩❤❛♥❣✱ ❩✳✱ ✷✵✵✾✳ ❉②♥❛♠✐❝ $❛!❣❡$❡❞ ♣!✐❝✐♥❣ ✇✐$❤ %$!❛$❡❣✐❝ ❝♦♥%✉♠❡!%✳ ■♥$❡!♥❛$✐♦♥❛❧
❏♦✉!♥❛❧ ♦❢ ■♥❞✉%$!✐❛❧ ❖!❣❛♥✐③❛$✐♦♥ ✷✼ ✭✶✮✱ ✹✸✕✺✵✳
❈♦!$%✱ ❑✳✱ ✶✾✾✽✳ ❚❤✐!❞✲❞❡❣!❡❡ ♣!✐❝❡ ❞✐%❝!✐♠✐♥❛$✐♦♥ ✐♥ ♦❧✐❣♦♣♦❧②✿ ❛❧❧✲♦✉$ ❝♦♠♣❡$✐$✐♦♥ ❛♥❞
%$!❛$❡❣✐❝ ❝♦♠♠✐$♠❡♥$✳ ❚❤❡ ❘❆◆❉ ❏♦✉!♥❛❧ ♦❢ ❊❝♦♥♦♠✐❝%✱ ✸✵✻✕✸✷✸✳
❊%$❡✈❡%✱ ❘✳✱ ✷✵✵✾✳ ❈✉%$♦♠❡! ♣♦❛❝❤✐♥❣ ❛♥❞ ❛❞✈❡!$✐%✐♥❣✳ ❚❤❡ ❏♦✉!♥❛❧ ♦❢ ■♥❞✉%$!✐❛❧ ❊❝♦♥♦♠✐❝%
✺✼ ✭✶✮✱ ✶✶✷✕✶✹✻✳
❊%$❡✈❡%✱ ❘✳✲❇✳✱ ✷✵✶✷✳ ❈✉%$♦♠❡! ♣♦❛❝❤✐♥❣ ✇✐$❤ !❡$❡♥$✐♦♥ %$!❛$❡❣✐❡%✳ ♠✐♠❡♦✱ ❯♥✐✈❡!%✐❞❛❞❡ ❞♦
▼✐♥❤♦✱ ❉❡❝❡♠❜❡! ✷✵✶✷✳
❋❛!!❡❧❧✱ ❏✳✱ ❑❧❡♠♣❡!❡!✱ U✳✱ ✷✵✵✼✳ ❈♦♦!❞✐♥❛$✐♦♥ ❛♥❞ ❧♦❝❦✲✐♥✿ ❈♦♠♣❡$✐$✐♦♥ ✇✐$❤ %✇✐$❝❤✐♥❣ ❝♦%$%
❛♥❞ ♥❡$✇♦!❦ ❡✛❡❝$%✳ ❍❛♥❞❜♦♦❦ ♦❢ ✐♥❞✉%$!✐❛❧ ♦!❣❛♥✐③❛$✐♦♥ ✸✱ ✶✾✻✼✕✷✵✼✷✳
❋✉❞❡♥❜❡!❣✱ ❉✳✱ ❱✐❧❧❛%✲❇♦❛%✱ ❏✳✱ ❍❡♥❞❡!%❤♦$$✱ ❚✳✱ ✷✵✵✻✳ ❇❡❤❛✈✐♦!✲❜❛%❡❞ ♣!✐❝❡ ❞✐%❝!✐♠✐♥❛$✐♦♥
❛♥❞ ❝✉%$♦♠❡! !❡❝♦❣♥✐$✐♦♥✳ ❍❛♥❞❜♦♦❦ ♦♥ ❡❝♦♥♦♠✐❝% ❛♥❞ ✐♥❢♦!♠❛$✐♦♥ %②%$❡♠% ✶✱ ✸✼✼✕✹✸✻✳
✸✼
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✸✽ ❇■❇▲■❖●❘❆'❍❨
●❡❤%✐❣✱ ❚✳✱ ❙❤②✱ ❖✳✱ ❙.❡♥❜❛❝❦❛✱ ❘✳✱ ✷✵✶✶✳ ❍✐9.♦%②✲❜❛9❡❞ ♣%✐❝❡ ❞✐9❝%✐♠✐♥❛.✐♦♥ ❛♥❞ ❡♥.%② ✐♥
♠❛%❦❡.9 ✇✐.❤ 9✇✐.❝❤✐♥❣ ❝♦9.9✿ ❛ ✇❡❧❢❛%❡ ❛♥❛❧②9✐9✳ ❊✉%♦♣❡❛♥ ❊❝♦♥♦♠✐❝ ❘❡✈✐❡✇ ✺✺ ✭✺✮✱ ✼✸✷✕
✼✸✾✳
▼❛9❦✐♥✱ ❊✳✱ ❘✐❧❡②✱ ❏✳✱ ✶✾✽✹✳ ▼♦♥♦♣♦❧② ✇✐.❤ ✐♥❝♦♠♣❧❡.❡ ✐♥❢♦%♠❛.✐♦♥✳ ❚❤❡ ❘❆◆❉ ❏♦✉%♥❛❧ ♦❢
❊❝♦♥♦♠✐❝9 ✶✺ ✭✷✮✱ ✶✼✶✕✶✾✻✳
▼❝❆❢❡❡✱ ❘✳✱ ✷✵✵✽✳ S%✐❝❡ ❞✐9❝%✐♠✐♥❛.✐♦♥✳ ♣%❡♣❛%❡❞ ❢♦% ❆❇❆✬9 ■99✉❡9 ✐♥ ❈♦♠♣❡.✐.✐♦♥ ❛♥❞ S♦❧✐❝②✳
❖❢❝♦♠✱ ✷✵✶✵✳ ❙.%❛.❡❣✐❝ ❘❡✈✐❡✇ ♦❢ ❈♦♥9✉♠❡% ❙✇✐.❝❤✐♥❣✳ ❖❢❝♦♠✳
❘♦9❡♥❜❡%❣✱ ▲✳✱ ❈③❡♣✐❡❧✱ ❏✳✱ ✶✾✽✹✳ ❆ ♠❛%❦❡.✐♥❣ ❛♣♣%♦❛❝❤ ❢♦% ❝✉9.♦♠❡% %❡.❡♥.✐♦♥✳ ❏♦✉%♥❛❧ ♦❢
❈♦♥9✉♠❡% ▼❛%❦❡.✐♥❣ ✶ ✭✷✮✱ ✹✺✕✺✶✳
❙❛❧♦♣✱ ❙✳✱ ✶✾✽✻✳ ✾ ♣%❛❝.✐❝❡9 .❤❛. ✭❝%❡❞✐❜❧②✮ ❢❛❝✐❧✐.❛.❡ ♦❧✐❣♦♣♦❧② ❝♦✲♦%❞✐♥❛.✐♦♥✳ ◆❡✇ ❞❡✈❡❧♦♣✲
♠❡♥.9 ✐♥ .❤❡ ❛♥❛❧②9✐9 ♦❢ ♠❛%❦❡. 9.%✉❝.✉%❡✱ ✷✻✺✳
❙♣✉❧❜❡%✱ ❉✳✱ ✶✾✽✾✳ S%♦❞✉❝. ✈❛%✐❡.② ❛♥❞ ❝♦♠♣❡.✐.✐✈❡ ❞✐9❝♦✉♥.9✳ ❏♦✉%♥❛❧ ♦❢ ❊❝♦♥♦♠✐❝ ❚❤❡♦%②
✹✽ ✭✷✮✱ ✺✶✵✕✺✷✺✳
❙.♦❧❡✱ ▲✳✱ ✷✵✵✼✳ S%✐❝❡ ❞✐9❝%✐♠✐♥❛.✐♦♥ ❛♥❞ ❝♦♠♣❡.✐.✐♦♥✳ ❍❛♥❞❜♦♦❦ ♦❢ ✐♥❞✉9.%✐❛❧ ♦%❣❛♥✐③❛.✐♦♥
✸✱ ✷✷✷✶✕✷✷✾✾✳
❚❛②❧♦%✱ ❈✳✱ ✷✵✵✸✳ ❙✉♣♣❧✐❡% 9✉%✜♥❣✿ ❈♦♠♣❡.✐.✐♦♥ ❛♥❞ ❝♦♥9✉♠❡% ❜❡❤❛✈✐♦% ✐♥ 9✉❜9❝%✐♣.✐♦♥ ♠❛%✲
❦❡.9✳ ❚❤❡ ❘❆◆❉ ❏♦✉%♥❛❧ ♦❢ ❊❝♦♥♦♠✐❝9 ✸✹ ✭✷✮✱ ✷✷✸✕✷✹✻✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡& ✷
❍✐*$♦&②✕❇❛*❡❞ 0&✐❝❡ ❉✐*❝&✐♠✐♥❛$✐♦♥ ❛♥❞
❲❡❧❢❛&❡ ✐♥ ❛ ●&♦✇✐♥❣ ▼❛&❦❡$
❆❜"#$❛❝#✳ ❆♥ ✐♥❝✉♠❜❡♥( ❢❛❝❡+ ❛♥ ❡♥(,❛♥( ✐♥ ❛ ♠❛,❦❡( ❢♦, ❛ ❤♦,✐③♦♥(❛❧❧② ❞✐✛❡,❡♥(✐❛(❡❞
♣,♦❞✉❝(✳ ❚❤❡ ✐♥❝✉♠❜❡♥(✬+ ❛❞✈❛♥(❛❣❡ ✐+ (✇♦❢♦❧❞✿ (❤❡ ❡①✐+(✐♥❣ ❝♦♥+✉♠❡, ❜❛+❡ ✐+ ♣,♦(❡❝(❡❞ ❜②
+✇✐(❝❤✐♥❣ ❝♦+(✱ ❛♥❞ ✐(+ ♣✉,❝❤❛+❡ ❤✐+(♦,② ✐+ ♦❜+❡,✈❡❞ ❜② (❤❡ ✐♥❝✉♠❜❡♥(❀ (❤✐,❞✕❞❡❣,❡❡ ♣,✐❝❡
❞✐+❝,✐♠✐♥❛(✐♦♥ ♦♥ ♣✉,❝❤❛+❡ +(❛(✉+ ✐+ (❤✉+ ❢❡❛+✐❜❧❡ ❢♦, (❤❡ ✐♥❝✉♠❜❡♥(✳ ❚❤❡ ❡♥(,❛♥( ♠❛②
✐♥❞✉❝❡ ❝♦♥+✉♠❡,+ (♦ ,❡✈❡❛❧ (❤❡✐, ♣✉,❝❤❛+❡ ❤✐+(♦,② (❤,♦✉❣❤ +✉✐(❛❜❧❡ ♦✛❡,+✳ ❯♥❞❡, ❞✉♦♣♦❧②✱
♣,✐❝❡ ❞✐+❝,✐♠✐♥❛(✐♦♥ ❧❡❛❞+ (♦ ❧♦✇❡, ♣,✐❝❡+ ❛♥❞ ♣,♦✜(+✱ ❜✉( ❛❧+♦ ❧♦✇❡,+ ❝♦♥+✉♠❡,+ +✉,♣❧✉+
❞✉❡ (♦ ❜,❛♥❞ ♠✐+❛❧❧♦❝❛(✐♦♥ ❛♥❞ ✐♥❡✣❝✐❡♥( +✇✐(❝❤✐♥❣✳ ❚❤✉+✱ ❜❛♥♥✐♥❣ ♣,✐❝❡ ❞✐+❝,✐♠✐♥❛(✐♦♥
✐♥❝,❡❛+❡+ ✇❡❧❢❛,❡✳ ❍♦✇❡✈❡,✱ ,❡❣✉❧❛(✐♦♥ ♠❛② ❛❧+♦ ❝❛✉+❡ ❡♥(,② ✐♥(♦ ❛♥ ♦(❤❡,✇✐+❡ ♠♦♥♦♣♦❧✐+❡❞
✐♥❞✉+(,②❀ (❤✐+ ♦❝❝✉,,+ ♦♥❧② ✇❤❡♥ ❡♥(,② ✐+ ✐♥❡✣❝✐❡♥(❀ (❤✉+ ♦♣(✐♠❛❧ ♣♦❧✐❝② ❝❛❧❧+ ❢♦, ❜❛♥+ ♦♥
♣,✐❝❡ ❞✐+❝,✐♠✐♥❛(✐♦♥ ✉♥❧❡++ (❤❡② ❝❛✉+❡ ❡♥(,②✳
✷✳✶ ■♥%&♦❞✉❝%✐♦♥
❍✐+(♦,②✕❜❛+❡❞ ♣,✐❝❡ ❞✐+❝,✐♠✐♥❛(✐♦♥ ✕ ❝❤❛,❣✐♥❣ ❝♦♥+✉♠❡,+ ❞✐✛❡,❡♥(❧② ❞❡♣❡♥❞✐♥❣ ♦♥ ✇❤❛( (❤❡✐,
♣✉,❝❤❛+❡ ❤✐+(♦,② ✕ ✐+ ❛ ❣,♦✇✐♥❣ ❜✉+✐♥❡++ ♣,❛❝(✐❝❡✳ ❲❤❡♥ ❛♥ ❡+(❛❜❧✐+❤❡❞ ✐♥❝✉♠❜❡♥( ✉+❡+
+✉❝❤ +(,❛(❡❣✐❡+ (♦ ❝♦♠♣❡(❡ ❛❣❛✐♥+( ❛ +♠❛❧❧ ❡♥(,❛♥(✱ (❤❡ ✐++✉❡ ❜❡❝♦♠❡+ ❝♦♥(❡♥(✐♦✉+✳ ❉♦❡+
♣,✐❝❡ ❞✐+❝,✐♠✐♥❛(✐♦♥ ❡①❝❧✉❞❡ ❛♥ ❡✣❝✐❡♥( ♣♦(❡♥(✐❛❧ ❡♥(,❛♥(❄ ❍♦✇ +(,♦♥❣ ✐+ (❤❡ ✐♥❝✉♠❜❡♥(✬+
+(,❛(❡❣✐❝ ❛❞✈❛♥(❛❣❡ ❢,♦♠ ❤❛✈✐♥❣ ❡①✐+(✐♥❣ ❝♦♥+✉♠❡, ,❡❝♦,❞+✱ ✇❤✐❧❡ (❤❡ ❡♥(,❛♥( +(❛,(+ ✇✐(❤♦✉(
+✉❝❤ ❞❛(❛❄ ❉♦❡+ ♣,✐❝❡ ❞✐+❝,✐♠✐♥❛(✐♦♥ +❤❛,♣❡♥ ♦, ❜❧✉♥( (❤❡ ❢♦,❝❡+ ♦❢ ♣,✐❝❡ ❝♦♠♣❡(✐(✐♦♥❄ ❉♦
❝♦♥+✉♠❡,+ ❜❡♥❡✜(✱ ❛♥❞ ✇❤❛( ✐+ (❤❡ ✐♠♣❛❝( ♦♥ +♦❝✐❛❧ ✇❡❧❢❛,❡❄
❚❤❡+❡ ❝♦♥❝❡,♥+ ❤❛✈❡ +✉,❢❛❝❡❞ ✐♥ ❛ ♥✉♠❜❡, ♦❢ ✇❡❧❧✕❦♥♦✇♥ ❛♥(✐(,✉+( ❝❛+❡+ ✭●❡,❛❞✐♥ ❛♥❞
✸✾
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✹✵ ❍✐"#♦%②✕❇❛"❡❞ ,%✐❝❡ ❉✐"❝%✐♠✐♥❛#✐♦♥ ❛♥❞ ❲❡❧❢❛%❡ ✐♥ ❛ ●%♦✇✐♥❣ ▼❛%❦❡#
"❡$✐$ ✭✷✵✵✺✮✱ ▼♦$$❛ ✭✷✵✵✹✱ ❝❤✳ ✼✳✹✮✮✳ ■♥ $❤❡ $❡①$❜♦♦❦ ❆❑❩❖ ❝❛;❡✱ $❤❡ ✜=♠ ♦✛❡=❡❞ ❞✐;❝♦✉♥$;
$♦ ❝♦♥;✉♠❡=; ♦❢ ❛ ;♠❛❧❧❡= ❝♦♠♣❡$✐$♦=❀ $❤❡ ❊✉=♦♣❡❛♥ ❈♦♠♠✐;;✐♦♥ ❢♦✉♥❞ $❤✐; ♣=❛❝$✐❝❡ ❛❜✉;✐✈❡
❞✉❡ $♦ ✐$; ♣♦$❡♥$✐❛❧ ❢♦= ❡①❝❧✉❞✐♥❣ $❤❡ ❝♦♠♣❡$✐$♦= ❢=♦♠ $❤❡ ♠❛=❦❡$✳ ❚❤❡ ❙✇❡❞✐;❤ ❈♦♠♣❡$✐$✐♦♥
❆✉$❤♦=✐$② ✭✉♥;✉❝❝❡;;❢✉❧❧②✮ ;✉❡❞ ❚❡❧✐❛❙♦♥❡=❛ ❢♦= ♦✛❡=✐♥❣ ❞✐;❝♦✉♥$; $♦ ❝♦♥;✉♠❡=; $❤❛$ ;✇✐$❝❤❡❞
$♦ ❡♥$=❛♥$ ❇=❡❞❜❛♥❞;❜♦❧❛❣❡$ ✇❤✐❧❡ ❦❡❡♣✐♥❣ ♣=✐❝❡; ❤✐❣❤ ❢♦= ♦$❤❡=;✱ ❛❧❧❡❣✐♥❣ ✐♥$❡♥$ $♦ ❡①❝❧✉❞❡✳
❍✐;$♦=②✕❜❛;❡❞ ♣=✐❝❡ ❞✐;❝=✐♠✐♥❛$✐♦♥ ✭❍❇"❉✮ ✐; ♦❢$❡♥ ;$✉❞✐❡❞ ✐♥ $❤❡ ❝♦♥$❡①$ ♦❢ ♣♦❛❝❤✐♥❣
♦✛❡=; ✭❋✉❞❡♥❜❡=❣ ❡$ ❛❧✳✱ ✷✵✵✻✮✱ ❞✐;❝♦✉♥$; $♦ ❝♦♥;✉♠❡=; ✇❤♦ ♣=❡✈✐♦✉;❧② ♣✉=❝❤❛;❡❞ ❢=♦♠ ❛
❝♦♠♣❡$✐$♦=✳ ❇✉$ ❛♥ ✐♥❝✉♠❜❡♥$ ✇✐$❤ ❛ ❞♦♠✐♥❛♥$ ♣♦;✐$✐♦♥ ❤❛; ❢❡✇ ♦= ♥♦ ♣♦$❡♥$✐❛❧ ;✇✐$❝❤❡=;✳
■♥ ;✉❝❤ ;❡$$✐♥❣;✱ $❤❡ ✐♥❝✉♠❜❡♥$✬; ❍❇"❉ ♠❛② ✐♥✈♦❧✈❡ ❛ ❤✐❣❤ ♣=✐❝❡ ❢♦= ❡①✐;$✐♥❣ ❝♦♥;✉♠❡=;✱
❜✉$ $❤❡ ✭♣♦;;✐❜❧②✮ ❞✐;❝♦✉♥$❡❞ ♣=✐❝❡ ✇♦✉❧❞ ❜❡ $❛=❣❡$❡❞ ❛$ ♥❡✇ ❝♦♥;✉♠❡=; ❥♦✐♥✐♥❣ $❤❡ ♠❛=❦❡$✱
❛ $❤❡♠❡ ❞❡✈❡❧♦♣❡❞ ✐♥ ●❡❤=✐❣ ❡$ ❛❧✳ ✭✷✵✶✶✮✳ ❘❡✢❡❝$✐♥❣ $❤✐;✱ ✐♥ ♠② ♠♦❞❡❧ $❤❡=❡ ✐; ❛ ;❤❛=❡
♦❢ ✏♦❧❞✑ ❝♦♥;✉♠❡=; $❤❛$ ❤❛✈❡ ♣=❡✈✐♦✉;❧② ♣✉=❝❤❛;❡❞ ❢=♦♠ $❤❡ ✐♥❝✉♠❜❡♥$ ✕ ;♦ $❤❡ ✐♥❝✉♠❜❡♥$
✐♥❤❡=✐$; ❛ ✶✵✵✪ ♠❛=❦❡$ ;❤❛=❡ ✐♥ $❤✐; ;❡❣♠❡♥$ ✕ ❛♥❞ ❢❛❝❡ ❛ ;✇✐$❝❤✐♥❣ ❝♦;$ ✇❤❡♥ ♠♦✈✐♥❣ $♦
$❤❡ ❡♥$=❛♥$✳ ✏◆❡✇✑ ❝♦♥;✉♠❡=; ❥♦✐♥ $❤❡ ♠❛=❦❡$ ❛♥❞ ❞♦ ♥♦$ ❢❛❝❡ ❛♥② ;✇✐$❝❤✐♥❣ ❝♦;$;✳ ■♥
❜♦$❤ ;❡❣♠❡♥$;✱ ❝♦♥;✉♠❡=;✬ ❜=❛♥❞ ♣=❡❢❡=❡♥❝❡; ✈✐;✕❛✕✈✐; ❡♥$=❛♥$ ♦= ✐♥❝✉♠❜❡♥$ ❛=❡ ❞✐;$=✐❜✉$❡❞
♦♥ $❤❡ ❍♦$❡❧❧✐♥❣ ❧✐♥❡✳ ❚❤❡ ✐♥❝✉♠❜❡♥$ ❝❛♥ ♦❜;❡=✈❡ $❤❡ ✐❞❡♥$✐$✐❡; ♦❢ ♦❧❞ ❝♦♥;✉♠❡=; ❢=♦♠ ❛
❝♦=♣♦=❛$❡ ❞❛$❛❜❛;❡✱ ❛♥❞ $❤✉; ❝❤❛=❣❡ ❞✐✛❡=❡♥$ ♣=✐❝❡; $♦ ♦❧❞ ❛♥❞ ♥❡✇ ❝♦♥;✉♠❡=;✳
❚❤❡ ❡♥$=❛♥$ ♠❛② ❤❛✈❡ ❛♥ ✐♥❝❡♥$✐✈❡ $♦ ♦✛❡= ♣♦❛❝❤✐♥❣ ❞✐;❝♦✉♥$; $♦ $❤❡ ✐♥❝✉♠❜❡♥$✬; ♦❧❞
❝♦♥;✉♠❡=;✳ ❲❤✐❧❡ ♥♦$ ❞✐=❡❝$❧② ♦❜;❡=✈✐♥❣ ❛ ❝♦♥;✉♠❡=✬; ♣✉=❝❤❛;❡ ❤✐;$♦=②✱ ✐$ ✐; ❝♦♥❝❡✐✈❛❜❧❡ $❤❛$
;❤❡ ♠❛② ♦✛❡= ❞✐;❝♦✉♥$; $❤❛$ ✐♥❞✉❝❡ ♦❧❞ ❝♦♥;✉♠❡=; $♦ =❡✈❡❛❧ $❤❡✐= ;$❛$✉;✱ ✐✳❡✳ ;❡❝♦♥❞✕❞❡❣=❡❡
♣=✐❝❡ ❞✐;❝=✐♠✐♥❛$✐♦♥✳ ❆❧❧♦✇✐♥❣ ❢♦= $❤✐; ♣♦;;✐❜✐❧✐$② ✐; ❛ ❝❡♥$=❛❧ ❞❡♣❛=$✉=❡ ❢=♦♠ $❤❡ ♠♦❞❡❧ ♦❢
●❡❤=✐❣ ❡$ ❛❧✳ ✭✷✵✶✶✮✱ ✇❤♦ ❛ ♣=✐♦=✐ ✐♠♣♦;❡ ✉♥✐❢♦=♠ ♣=✐❝✐♥❣ ♦♥ $❤❡ ❡♥$=❛♥$✳ ❆; $❤❡ ❛♥❛❧②;✐;
✇✐❧❧ ;❤♦✇✱ $❤❡ ❡♥$=❛♥$ ❣❡♥❡=❛❧❧② ❤❛; ❛♥ ✐♥❝❡♥$✐✈❡ ❝❤❛=❣❡ ♦❧❞ ❝♦♥;✉♠❡=; ❛ ❧♦✇❡= ♣=✐❝❡ $❤❛♥
♥❡✇ ❝♦♥;✉♠❡=;❀ ❤❡♥❝❡ $❤❡ ❝♦♥;✉♠❡=;✬ ✐♥❝❡♥$✐✈❡ ❝♦♠♣❛$✐❜✐❧✐$② ❝♦♥;$=❛✐♥$ ✐; ♥♦$ ❜✐♥❞✐♥❣ ❛♥❞
;✉❝❤ ❞✐;❝=✐♠✐♥❛$✐♦♥ ✐; ❢❡❛;✐❜❧❡✳ ▼♦=❡♦✈❡=✱ $❤❡ ❡♥$=❛♥$✬; ❛❜✐❧✐$② $♦ ❞✐;❝=✐♠✐♥❛$❡ ❤❛; ✐♠♣♦=$❛♥$
❝♦♥;❡_✉❡♥❝❡; ❢♦= ❡_✉✐❧✐❜=✐✉♠ ❡♥$=② ❛♥❞ ✇❡❧❢❛=❡ =❡;✉❧$;✳
❙✐♥❝❡ ❝♦♠♣❡$✐$✐♦♥ ❧❛✇ ❣❡♥❡=❛❧❧② ❛❧❧♦✇; =❡;$=❛✐♥$; ♦♥❧② ♦♥ ❧❛=❣❡ ✜=♠; ✕ ✏❞♦♠✐♥❛♥$ ✉♥❞❡=✲
$❛❦✐♥❣;✑ ✐♥ $❤❡ $❡=♠✐♥♦❧♦❣② ♦❢ ❆=$✐❝❧❡ ✶✵✷ ♦❢ $❤❡ ❚!❡❛$② ♦♥ $❤❡ ❋✉♥❝$✐♦♥✐♥❣ ♦❢ $❤❡ ❊✉!♦♣❡❛♥
❯♥✐♦♥ ✕ ♣♦;;✐❜❧❡ ✐♥$❡=✈❡♥$✐♦♥; =❡❣❛=❞✐♥❣ ♣=✐❝❡ ❞✐;❝=✐♠✐♥❛$✐♦♥ ❝❛♥ ❜❡ $❛=❣❡$❡❞ ♦♥❧② ❛$ $❤❡
✐♥❝✉♠❜❡♥$❀ $❤❡ ❡♥$=❛♥$ ✇✐❧❧ =❡♠❛✐♥ ✉♥❝♦♥;$=❛✐♥❡❞ ✐♥ ❤❡= ❛❜✐❧✐$② $♦ ❞✐;❝=✐♠✐♥❛$❡
✶
✳ ❚❤✐; ✐; ❝❛♣✲
$✉=❡❞ ✐♥ $❤❡ ♠♦❞❡❧ $❤=♦✉❣❤ ❛ ❝♦♥;$=❛✐♥$✱ ;❡$ ❜② ❛ ❝♦♠♣❡$✐$✐♦♥ ❛✉$❤♦=✐$②✱ ♦♥ $❤❡ ♠❛①✐♠✉♠
♣=✐❝❡ ❞✐✛❡=❡♥❝❡ ❜❡$✇❡❡♥ ♦❧❞ ❛♥❞ ♥❡✇ ;❡❣♠❡♥$; $❤❛$ $❤❡ ✐♥❝✉♠❜❡♥$ ✐; ❛❧❧♦✇❡❞ $♦ ✐♠♣♦;❡✳ ❚❤❡
❝❛;❡ ♦❢ ✉♥✐❢♦=♠ ♣=✐❝✐♥❣✱ $②♣✐❝❛❧❧② ❝♦♥;✐❞❡=❡❞ ✐♥ $❤❡ ❧✐$❡=❛$✉=❡✱ ✐; ❛ ;♣❡❝✐❛❧ ❝❛;❡ ♦❢ $❤✐;✳ ❚❤❡
✶
❙❡❡ ✭●❡$❛❞✐♥ ❛♥❞ )❡*✐*✱ ✷✵✵✺✱ /❡❝*✐♦♥ ✷✳✷✳✮ ❢♦$ ❛ ❞❡*❛✐❧❡❞ ❞✐/❝✉//✐♦♥ ♦❢ *❤❡ /❝♦♣❡ ♦❢ ❛$*✐❝❧❡ ✶✵✷✭❝✮✱ ✇❤✐❝❤
❛♣♣❧✐❡/ *♦ ♣$✐❝❡ ❞✐/❝$✐♠✐♥❛*✐♦♥
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✷ ✹✶
♣♦❧✐❝② ✐( ❞❡+❡,♠✐♥❡❞ ❛+ +❤❡ ♦♥(❡+ ♦❢ +❤❡ ❣❛♠❡❀ +❤❡♥ +❤❡ ❡♥+,❛♥+ ❞❡❝✐❞❡( ✇❤❡+❤❡, +♦ ❥♦✐♥ +❤❡
♠❛,❦❡+ ❛♥❞ +❤❡ ✐♥❝✉♠❜❡♥+ ✇❤❡+❤❡, +♦ ,❡♠❛✐♥ ❛❝+✐✈❡ ♦, ❡①✐+✳ ❋✐♥❛❧❧②✱ ❞✉♦♣♦❧② ♦, ✐♥❝✉♠❜❡♥+
♠♦♥♦♣♦❧② ✐( ♣❧❛②❡❞ ♦✉+✳
■♥ +❤✐( (❡++✐♥❣✱ ♣,✐❝❡ ❞✐(❝,✐♠✐♥❛+✐♦♥ ❤❛( ✐♠♣♦,+❛♥+ ✇❡❧❢❛,❡ ❝♦♥(❡?✉❡♥❝❡(✳ ●✐✈❡♥ +❤❛+
❜♦+❤ ✜,♠( ❤❛✈❡ ❡♥+❡,❡❞✱ +✐❣❤+❡, ,❡❣✉❧❛+✐♦♥ ❢♦,❝❡( +❤❡ ✐♥❝✉♠❜❡♥+ +♦ +,❛❞❡ ♦✛ ❝❛♣+✉,✐♥❣ ,❡♥+(
♦♥ ♦❧❞ ❝♦♥(✉♠❡,( ✇✐+❤ +❤❡ ❣♦❛❧ ♦❢ ❛++,❛❝+✐♥❣ ♥❡✇ ❝♦♥(✉♠❡,(✳ ■♥ ❡?✉✐❧✐❜,✐✉♠✱ +❤✐( ❧❡❛❞( +♦
❤✐❣❤❡, ♣,✐❝❡( ❛♥❞ ❣,❡❛+❡, ❡♥+,❛♥+✬( ♠❛,❦❡+ ♣❡♥❡+,❛+✐♦♥ ❛♠♦♥❣ ♥❡✇ ❝♦♥(✉♠❡,(✱ ✇✐+❤ ♦♣♣♦(✐+❡
,❡(✉❧+( ❢♦, ♦❧❞ ❝♦♥(✉♠❡,(
✷
❍❡♥❝❡ ♦❧❞ ❝♦♥(✉♠❡,( ❜❡♥❡✜+ ❢,♦♠ ,❡❣✉❧❛+✐♦♥ ✇❤✐❧❡ ♥❡✇ ♦♥❡(
❛,❡ ❤✉,+❀ ✐♥ +❤❡ ❛❣❣,❡❣❛+❡✱ ❝♦♥(✉♠❡, (✉,♣❧✉( ✐"❡"✳ ❋,♦♠ ❛ (♦❝✐❛❧ ✇❡❧❢❛,❡ ♣❡,(♣❡❝+✐✈❡✱ +❤❡
,❡❞✉❝+✐♦♥ ✐♥ (✇✐+❝❤✐♥❣ ,❛+❡( ❜,✐♥❣( ❛ ✇❡❧❢❛,❡ ❣❛✐♥ +❤❛+ ♦✉+✇❡✐❣❤( +❤❡ ❝♦(+( ♦❢ ❞✐(+♦,+✐♥❣ ❜,❛♥❞
❝❤♦✐❝❡( ❛♠♦♥❣ ♥❡✇ ❝♦♥(✉♠❡,(✳ ❲❤❡♥ ,❡❣✉❧❛+✐♦♥ ✐( ♠❛,❣✐♥❛❧ +♦ ❡♥+,②✱ ♦♥❡ ♠✉(+ +,❛❞❡ ♦✛
+❤❡ ,❡❞✉❝+✐♦♥ ✐♥ +,❛♥(♣♦,+❛+✐♦♥ ❝♦(+ ✉♥❞❡, +❤❡ ❜❡(+✕,❡❣✉❧❛+❡❞ ❞✉♦♣♦❧② ,❡❣✐♠❡ ❛❣❛✐♥(+ +❤❡
❝♦(+ ♦❢ +❤❡ ❡♥+,❛♥+✬( ✜①❡❞ ❝♦(+ ❛♥❞ (✇✐+❝❤✐♥❣ ❝♦(+✳ ❇✉+ ❢♦, ,❡❣✉❧❛+✐♦♥ +♦ ❛✛❡❝+ ❡♥+,②✱ ✜①❡❞
❝♦(+( ♦❢ +❤❡ ❡♥+,❛♥+ ♠✉(+ ❜❡ ❤✐❣❤ ✕ (✉✣❝✐❡♥+❧② ❤✐❣❤ +❤❛+ ❡♥+,② ✐( ✐♥❡✣❝✐❡♥+✳ ❚❤✉(✱ ♦♣+✐♠❛❧
♣♦❧✐❝② ❝❛❧❧( ❢♦, ❜❛♥" ♦♥ ✐♥❝✉♠❜❡♥+ ♣ ✐❝❡ ❞✐"❝ ✐♠✐♥❛+✐♦♥✱ ✉♥❧❡"" +❤❡② ❝❛✉"❡ ❡♥+ ② ✳ ❚❤✉(✱ +❤❡
♣♦+❡♥+✐❛❧ ♦❢ ♣,✐❝❡ ❞✐(❝,✐♠✐♥❛+✐♦♥ +♦ ❝♦♥(♦❧✐❞❛+❡ ❛♥ ✐♥❞✉(+,② ✕ ❞✐(❝✉((❡❞ ❡✳❣✳ ✐♥ ❙♣❡❝+♦, ✭✷✵✵✺✮
✕ (❤♦✉❧❞ ♥♦+ ❜❡ ✉♥❛♠❜✐❣♦✉(❧② (❡❡♥ ❛( ♥❡❣❛+✐✈❡✳
■♥ ●❡❤,✐❣ ❡+ ❛❧✳ ✭✷✵✶✶✮✱ ❡♥+,② ❝♦♥(✐❞❡,❛+✐♦♥( ❞♦ ♥♦+ ❛,✐(❡ ❜❡❝❛✉(❡ +❤❡ ❡♥+,❛♥+✬( ♣,♦✜+ ✐(
✐♥✈❛,✐❛♥+ +♦ +❤❡ ✐♥❝✉♠❜❡♥+✬( ,❡❣✉❧❛+✐♦♥✳ ❚❤✐( ,❡❧✐❡( ♦♥ +❤❡ ❛((✉♠♣+✐♦♥ ♦❢ ✉♥✐❢♦,♠ ♣,✐❝✐♥❣✳
❇✉+ ♠② ♠♦❞❡❧ (❤♦✇( +❤❛+ +❤❡ ❡♥+,❛♥+✬( ✐♥❝❡♥+✐✈❡ +♦ ♣,✐❝❡ ❞✐(❝,✐♠✐♥❛+❡ ❣ ♦✇" ✇❤❡♥ +❤❡
✐♥❝✉♠❜❡♥+ ✐( ,❡❣✉❧❛+❡❞✳ ❇✉+ +❤✐( ♦♣❡♥( +❤❡ ♣♦((✐❜✐❧✐+② ♦❢ ❡①❝❧✉(✐♦♥❛,② ♣,✐❝❡ ❞✐(❝,✐♠✐♥❛+✐♦♥✱
✇❤✐❝❤ (❤♦✉❧❞ ♥♦+ ❜❡ ♥❡❣❧❡❝+❡❞✳ ❈❤❡♥ ✭✷✵✵✽✮ ❛,❣✉❡( +❤❛+ ❤✐(+♦,②✕❜❛(❡❞ ♣,✐❝❡ ❞✐(❝,✐♠✐♥❛+✐♦♥
✐♥❝,❡❛(❡( ❝♦♥(✉♠❡, (✉,♣❧✉( ❛( ❧♦♥❣ ❛( ✐+ ❞♦❡( ♥♦+ ❝❛✉(❡ ❡①✐+✳ ❍✐( ♠♦❞❡❧ ✐( ❜❛(❡❞ ♦♥ ❛
❤♦♠♦❣❡♥♦✉( ♣,♦❞✉❝+ ✇❤❡,❡ ❧♦✇❡, ♣,✐❝❡( ✉♥❛♠❜✐❣✉♦✉(❧② ✐♥❝,❡❛(❡ ✇❡❧❢❛,❡✱ ❛♥❞ ❜❡❝❛✉(❡ +❤❡
❝♦♥(✉♠❡, (✉,♣❧✉( (+❛♥❞❛,❞ ❞✐(,❡❣❛,❞( +❤❡ (♦❝✐❛❧ ❝♦(+( ♦❢ ❡①❝❡(( ❡♥+,②
✸
✳ ■♥ ❝♦♥+,❛(+✱ ✐♥ +❤❡
♣,❡(❡♥+ ♣❛♣❡,✱ ❤✐(+♦,② ❜❛(❡❞ ♣,✐❝❡ ❞✐(❝,✐♠✐♥❛+✐♦♥ ,❡❞✉❝❡( ❝♦♥(✉♠❡, (✉,♣❧✉( ✉♥❞❡, ❞✉♦♣♦❧②✿
+❤❡ ✇❡❧❢❛,❡ ❡✛❡❝+( ❞✐✛❡, ❜❡+✇❡❡♥ ♦❧❞ ❛♥❞ ♥❡✇ (❡❣♠❡♥+✱ ❛♥❞ +❤❡ ❧♦((❡( ♦❢ +❤❡ ❧❛++❡, ✕ ❞✉❡ +♦
♠♦,❡ ❡✛❡❝+✐✈❡ ❡①♣❧♦✐+❛+✐♦♥ ♦❢ ,❡♥+ ✉♥❞❡, ❞✐(❝,✐♠✐♥❛+✐♦♥ ✕ ♠♦,❡ +❤❛♥ ♦✉+✇❡✐❣❤ +❤❡ ❣❛✐♥( ♦❢
♥❡✇ ❝♦♥(✉♠❡,( ❢,♦♠ ✜❡,❝❡ ❝♦♠♣❡+✐+✐♦♥ ✐♥ +❤❛+ (❡❣♠❡♥+✳ ❚❤✐( ❡♠♣❤❛(✐(❡( +❤❡ ✐♠♣♦,+❛♥❝❡ ♦❢
♣❛②✐♥❣ ❝❧♦(❡ ❛++❡♥+✐♦♥ +♦ +❤❡ (♣❡❝✐✜❝( ♦❢ +❤❡ ♠❛,❦❡+ (+,✉❝+✉,❡ ❛♥❞ ✇❡❧❢❛,❡ (+❛♥❞❛,❞ ✇❤❡♥
✷
❚❤✐# ✐# ❝♦♥'(❛#' '♦ ♠♦❞❡❧# ♦❢ ❜❡#'✕(❡#♣♦♥#❡ ❛#②♠♠❡'(② ❈♦('# ✭✶✾✾✽✮✱ ✐♥ ✇❤✐❝❤ ♦♥❡ ✜(♠✬# #'(♦♥❣ ♠❛(❦❡'
✐# ❛♥♦'❤❡( ✜(♠✬# ✇❡❛❦ ♠❛(❦❡'✱ ❛♥❞ ✈✐❝❡ ✈❡(#❛✳ ■♥ '❤❡#❡ #❡''✐♥❣#✱ ♣(✐❝❡ ❞✐#❝(✐♠✐♥❛'✐♦♥ ♠❛② ❧❡❛❞ '♦ ✏❛❧❧ ♦✉'
❝♦♠♣❡'✐'✐♦♥✑✱ ✐✳❡✳ ❧♦✇❡( ♣(✐❝❡# ♦✈❡(❛❧❧ ✭❇❡#'❡( ❛♥❞ F❡'(❛❦✐# ✭✶✾✾✻✮❀ ❚❤✐##❡ ❛♥❞ ❱✐✈❡# ✭✶✾✽✽✮❀ ❈❤❡♥ ✭✶✾✾✼✮
❛♥❞ ✐♥❞❡❡❞ '❤❡ (❡'❡♥'✐♦♥ ♣❛♣❡( ✐♥ ❝❤❛♣'❡( ✶ ❛(❡ ❡①❛♠♣❧❡# ♦❢ #✉❝❤ ♠♦❞❡❧#✮✳
✸
❙❡❡ ❋❛((❡❧❧ ❛♥❞ ❑❛'③ ✭✷✵✵✻✮ ❢♦( ❛♥ ✐♥'❡(❡#'✐♥❣ ❞✐#❝✉##✐♦♥ ♦❢ ✇❡❧❢❛(❡ #'❛♥❞❛(❞# ❛♣♣❧✐❡❞ '♦ ❛♥'✐✕'(✉#'✱
❛(❣✉✐♥❣ '❤❛' ❜♦'❤ #'❛♥❞❛(❞# ❤❛✈❡ ❧✐♠✐'❛'✐♦♥# ❛♥❞ ❛♥'✐✕'(✉#' ✐# ♥♦' #'(✐❝'❧② ✇❡❧❢❛(✐#'
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✹✷ ❍✐"#♦%②✕❇❛"❡❞ ,%✐❝❡ ❉✐"❝%✐♠✐♥❛#✐♦♥ ❛♥❞ ❲❡❧❢❛%❡ ✐♥ ❛ ●%♦✇✐♥❣ ▼❛%❦❡#
❛##❡##✐♥❣ ♣)✐❝❡ ❞✐#❝)✐♠✐♥❛-✐♦♥✳ ■♥❞❡❡❞✱ ●❡❤)✐❣ ❡- ❛❧✳ ✭✷✵✶✷✮ ❞❡✈❡❧♦♣ ❛ ♠♦❞❡❧ ✇✐-❤ ❛ #✐♥❣❧❡
♣♦♣✉❧❛-✐♦♥ ♦❢ ❝♦♥#✉♠❡)# ♦♥ -❤❡ ❍♦-❡❧❧✐♥❣ ❧✐♥❡✱ ✇❤❡)❡ -❤❡ ✐♥✐-✐❛❧ ❛#②♠♠❡-)② ♠❛)❦❡- #❤❛)❡#
✐# ✐♥-❡)✐♦)✳ ❚❤✐# )❡✕✐♥-)♦❞✉❝❡# ❡❧❡♠❡♥-# ♦❢ ❜❡#- )❡#♣♦♥#❡ ❛#②♠♠❡-)②✱ ❛♥❞ ❝♦♥#✉♠❡)# ❜❡♥❡✜-
❢)♦♠ ♣)✐❝❡ ❞✐#❝)✐♠✐♥❛-✐♦♥ ✉♥❧❡## #✇✐-❝❤✐♥❣ ❝♦#- ✐# ❤✐❣❤ ♦) ✐♥✐-✐❛❧ ❞♦♠✐♥❛♥❝❡ ✐# ✇❡❛❦✳
❇♦✉❝❦❛❡)- ❡- ❛❧✳ ✭✷✵✶✸✮ ❝♦♥#✐❞❡) )❡❣✉❧❛-✐♦♥ ♣)✐❝❡ ❞✐#❝)✐♠✐♥❛-✐♦♥ ❜② ❞♦♠✐♥❛♥- ✜)♠#✳ ❆#
❆)♠#-)♦♥❣ ❛♥❞ ❱✐❝❦❡)# ✭✶✾✾✸✮✱ -❤❡② ❝♦♥#✐❞❡) ❛♥ ✐♥❝✉♠❜❡♥- ✇✐-❤ ❛♥ ❡①♦❣❡♥♦✉#❧② #❤❡❧-❡)❡❞
❛♥❞ ❛ ♣♦-❡♥-✐❛❧❧② ❝♦♠♣❡-✐-✐✈❡ #❡❣♠❡♥- #✉❜❥❡❝- -♦ ♣♦-❡♥-✐❛❧ ❡♥-)②✳ ■♥ ❛ -✇♦✕♣❡)✐♦❞ ♠♦❞❡❧✱
-❤❡② ❝♦♥#✐❞❡) ❝♦♥#-)❛✐♥-# -❤❛- ❜❛♥ ♣)✐❝❡ ✐♥❝)❡❛#❡# ❢♦) #❤❡❧-❡)❡❞ ❝♦♥#✉♠❡)# ♦) )✐✈❛❧✬# ❝♦♥#✉♠❡)#
)❡#♣❡❝-✐✈❡❧②✳ ❚❤❡✐) )❡#✉❧-# ❞❡♣❡♥❞ #-)♦♥❣❧② ♦♥ -❤❡ ❢♦)♠ ♦❢ -❤❡ ❝♦♥#-)❛✐♥-✱ ❛♥❞ -❤❡② ❛)❣✉❡
-❤❛- ❜❛♥# ♣)✐❝❡ ❝✉-# ❢♦) )✐✈❛❧ ❝♦♥#✉♠❡)# ♠❛①✐♠✐#❡ ❝♦♥#✉♠❡) #✉)♣❧✉#✳
L)✐❝❡ ❞✐#❝)✐♠✐♥❛-✐♦♥ ❛♥❞ ❡♥-)② ❛)❡ ❡#♣❡❝✐❛❧❧② #❛❧✐❡♥- ✐##✉❡# ✐♥ ♥❡-✇♦)❦ ✐♥❞✉#-)✐❡# ❍❛✉❝❛♣
✭✷✵✵✸✮✳ ■♥ ❑❛)❧✐♥❣❡) ❛♥❞ ▼♦--❛ ✭✷✵✶✷✮✱ ❛ ♠♦)❡ ❡✣❝✐❡♥- ❡♥-)❛♥- ❝♦♥#✐❞❡)# ❥♦✐♥✐♥❣ -❤❡ ♠❛)❦❡-✳
❊❛❝❤ ✜)♠✬# -❡❝❤♥♦❧♦❣② ❤❛# ❝♦♥#-❛♥- )❡-✉)♥# -♦ #❝❛❧❡✱ ❜✉- -❤❡ #✐③❡ ♦❢ -❤❡ ♥❡-✇♦)❦ ❡①❡)-#
❛ ♣♦#✐-✐✈❡ ❡①-❡)♥❛❧✐-② ♦♥ -❤❡ ❝♦♥#✉♠❡)#✬ ✈❛❧✉❛-✐♦♥ ♦❢ -❤❡ ♣)♦❞✉❝- ❜② ♣❛)-✐❝✉❧❛) ✜)♠✳ ■♥
♣❛)-✐❝✉❧❛)✱ -❤❡ ✜)♠✬# ♥❡-✇♦)❦ ♠✉#- ❤❛✈❡ ❛ ❝❡)-❛✐♥ ♠✐♥✐♠✉♠ #✐③❡ ❢♦) ❝♦♥#✉♠❡)# -♦ ❤❛✈❡ ❛
♣♦#✐-✐✈❡ ✈❛❧✉❛-✐♦♥ ❢♦) -❤❡ ♣)♦❞✉❝-✳ ❚❤❡)❡ ❛)❡ ♥♦ #✇✐-❝❤✐♥❣ ❝♦#-# ✐♥ -❤❡✐) ♠♦❞❡❧✱ #♦ ❡♥-)②
✐# ❛❧✇❛②# ❡✣❝✐❡♥-✳ ■♥ -❤✐# #❡--✐♥❣✱ -❤❡② #❤♦✇ -❤❛- ♣)✐❝❡ ❞✐#❝)✐♠✐♥❛-✐♦♥ ❜② -❤❡ ✐♥❝✉♠❜❡♥-
)❡❞✉❝❡# -❤❡ )❛♥❣❡ ♦❢ ❡✣❝✐❡♥- ❡♥-)② ❡R✉✐❧✐❜)✐❛✱ ❞✉❡ -♦ ❛ ♠✐#❝♦♦)❞✐♥❛-✐♦♥ ❡✛❡❝- ❛# ✐♥ ❙❡❣❛❧ ❛♥❞
❲❤✐♥#-♦♥ ✭✷✵✵✵✮✳ ▲✐❦❡ -❤❡ ♣)❡#❡♥- ♣❛♣❡)✱ -❤❡② ❛##✉♠❡ ❛♥ ✐♥❤❡)✐-❡❞ ❛##②♠❡-)② ✐♥ ♠❛)❦❡-
#❤❛)❡✱ ❛♥❞ ❡♥-)② ✐# ❧❡## ❧✐❦❡❧② ✉♥❞❡) ♣)✐❝❡ ❞✐#❝)✐♠✐♥❛-✐♦♥✳ ❍♦✇❡✈❡)✱ -❤❡ ✇❡❧❢❛)❡ )❡#✉❧-# ❞✐✛❡)
#✐♥❝❡ -❤❡✐) ♠♦❞❡❧ ♣)❡❝❧✉❞❡# -❤❡ ♣♦##✐❜✐❧✐-② ♦❢ ✐♥❡✣❝✐❡♥- ❡♥-)②✳
❚❤❡ ♣❛♣❡) ♣)♦❝❡❡❞# ❜② #❡--✐♥❣ ✉♣ -❤❡ ♠♦❞❡❧ ✐♥ #❡❝-✐♦♥ ✷✳✷✳ ❙❡❝-✐♦♥ ✷✳✸ -❤❡♥ #♦❧✈❡# ❢♦)
-❤❡ ❡R✉✐❧✐❜)✐✉♠ ✉♥❞❡) -❤❡ ❞✐✛❡)❡♥- ♣♦##✐❜❧❡ ♠❛)❦❡- #-)✉❝-✉)❡# ❛♥❞ )❡❣✉❧❛-✐♦♥ )❡❣✐♠❡#✳ ❚❤❡♥✱
#❡❝-✐♦♥ ✷✳✹ ❝♦♥❞✉❝-# -❤❡ ✇❡❧❢❛)❡ ❛♥❛❧②#✐# ❛♥❞ ✜♥❛❧❧② #❡❝-✐♦♥ ✷✳✺ ❝♦♥❝❧✉❞❡#✳
✷✳✷ ▼♦❞❡❧
❙❡"✕❯♣✳ ❚❤❡ ❢)❛♠❡✇♦)❦ ✐# ❛ -✇♦✕#-❛❣❡ ♠♦❞❡❧ ♦❢ ❡♥-)② ❛♥❞ ♣)✐❝❡ ❝♦♠♣❡-✐-✐♦♥✳ ■♥ -❤❡ ✜)#-
#-❛❣❡✱ ❜♦-❤ -❤❡ ✐♥❝✉♠❜❡♥- ✜)♠ A ❛♥❞ ♣♦-❡♥-✐❛❧ ❡♥-)❛♥- ✜)♠ B ❞❡❝✐❞❡ ✇❤❡-❤❡) -♦ ❜❡ ❛❝-✐✈❡
✭A✮ ✐♥ -❤❡ ♠❛)❦❡- ♦) ❡①✐- ✭E✮❀ -❤❡ )❡#✉❧-✐♥❣ ♠❛)❦❡- #-)✉❝-✉)❡ ♠❛② -❤✉# ✐♥✈♦❧✈❡ ❛ ❞✉♦♣♦❧②
✭❜♦-❤ ✜)♠# ❡♥-❡)✮✱ ✐♥❝✉♠❜❡♥- ♠♦♥♦♣♦❧② ✭♥♦ ❡♥-)②✮ ♦) ❡♥-)❛♥- ♠♦♥♦♣♦❧② ✭✐♥❝✉♠❜❡♥- ❡①✐-✮✳
■♥ -❤❡ #❡❝♦♥❞ #-❛❣❡✱ ♥❡✇ ❝♦♥#✉♠❡)# ❥♦✐♥ -❤❡ ♠❛)❦❡-❀ ✐♥ ❛❞❞✐-✐♦♥✱ ♦❧❞ ❝♦♥#✉♠❡)# ✕ ✇❤♦ ♣)❡✲
✈✐♦✉#❧② ♣✉)❝❤❛#❡❞ ❢)♦♠ -❤❡ ✐♥❝✉♠❜❡♥- ✕ )❡♠❛✐♥ ✐♥ -❤❡ ♠❛)❦❡-✳ ❚❤❡ ❧❛--❡) ✐♥❝✉) ❛ #✇✐-❝❤✐♥❣
❝♦#- ✐❢ -❤❡② ♠♦✈❡ -♦ -❤❡ ❡♥-)❛♥-❀ ✐♥ ❜♦-❤ #❡❣♠❡♥-#✱ ❝♦♥#✉♠❡)# ✈❛)② ✐♥ -❤❡✐) ❜)❛♥❞ ♣)❡❢❡)❡♥❝❡
❢♦) ❡✐-❤❡) A ♦) B✬# ♣)♦❞✉❝-✳ ❍♦-❡❧❧✐♥❣ ♣)✐❝❡ ❝♦♠♣❡-✐-✐♦♥ -❤❡♥ ✉♥❢♦❧❞#✱ ❣✐✈❡♥ -❤❡ ♠❛)❦❡-
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✷ ✹✸
❋✐❣✉&❡ ✷✳✶✿ ❚✐♠❡❧✐♥❡
01&✉❝1✉&❡ ✐♥ ♣❧❛❝❡✳ ❚❤❡ 1✐♠✐♥❣ ♦❢ 1❤❡ ♠♦❞❡❧ ✐0 0✉♠♠❛&✐0❡❞ ✐♥ ✜❣✉&❡ ✷✳✶✳
❈♦♥#✉♠❡'#✳ ❆1 1❤❡ ♦♥0❡1 ♦❢ 1❤❡ ♣&✐❝✐♥❣ 01❛❣❡✱ 1❤❡&❡ ❛&❡ 1✇♦ ❦✐♥❞0 ♦❢ ❝♦♥0✉♠❡&0✳ ❋✐&01✱ ❛ ♠❛00
θ ♦❢ ✏♥❡✇✑ ❝♦♥0✉♠❡&0 ❥♦✐♥0 1❤❡ ♠❛&❦❡1✳ ❚❤❡0❡ ❝♦♥0✉♠❡&0 ✈❛&② ✐♥ 1❤❡✐& ❜&❛♥❞ ♣&❡❢❡&❡♥❝❡ x ❢♦&
❡✐1❤❡& ✜&♠✱ ✇❤✐❝❤ ✐0 ❛00✉♠❡❞ 1♦ ❜❡ ❞✐01&✐❜✉1❡❞ ✉♥✐❢♦&♠❧② ♦♥ 1❤❡ ✉♥✐1 ✐♥1❡&✈❛❧✱ x ∼ U [0, 1]✳
❋❛❝✐♥❣ ♣&✐❝❡0 pANEW ❛♥❞ pBNEW ❜② ✐♥❝✉♠❜❡♥1 ❛♥❞ ❡♥1&❛♥1 &❡0♣❡❝1✐✈❡❧②✱ 1❤❡✐& ✉1✐❧✐1② ❢✉♥❝1✐♦♥
✐0 ❣✐✈❡♥ ❜②
uNEW (x; pANEW , pBNEW ) =
β − pANEW − tx ✐❢ ❜✉②✐♥❣ ❢&♦♠ ❆
β − pBNEW − t(1− x) ✐❢ ❜✉②✐♥❣ ❢&♦♠ ❇
0 ♦1❤❡&✇✐0❡
✭✷✳✷✳✶✮
❙❡❝♦♥❞✱ 1❤❡ ✐♥❝✉♠❜❡♥1 A ❤❛0 ❛♥ ✐♥❤❡&✐1❡❞ ❝♦♥0✉♠❡& ❜❛0❡ ✭✏♦❧❞ ❝♦♥0✉♠❡&0✑✮❀ 1❤❡0❡ ❝♦♥✲
0✉♠❡&0 ♣✉&❝❤❛0❡❞ ❢&♦♠ 1❤❡ ✐♥❝✉♠❜❡♥1 ✐♥ ❛♥ ❡❛&❧✐❡&✱ ✉♥♠♦❞❡❧❧❡❞ ♣❡&✐♦❞ ❛♥❞ ❛♠♦✉♥1 1♦ ❛ ♠❛00
1 − θ✳ ▲✐❦❡ ♥❡✇ ❝♦♥0✉♠❡&0✱ 1❤❡0❡ ❝♦♥0✉♠❡&0 ❤❛✈❡ ✉♥✐❢♦&♠❧② ❞✐01&✐❜✉1❡❞ ❜&❛♥❞ ♣&❡❢❡&❡♥❝❡❀
❤♦✇❡✈❡&✱ ✐♥ ❝❛0❡ ❛♥ ♦❧❞ ❝♦♥0✉♠❡&0 0✇✐1❝❤❡0 1♦ B✱ 0❤❡ ✐♥❝✉&0 ❛ ✭&❡❛❧✮ 0✇✐1❝❤✐♥❣ ❝♦01 s✳ ❖❧❞
❝♦♥0✉♠❡&0 ♠❛② ❝❤♦♦0❡ ❜❡1✇❡❡♥ 1❤❡ ✐♥❝✉♠❜❡♥1✬0 ♣&♦❞✉❝1✱ ❛1 ♣&✐❝❡ pAOLD✱ ❛♥❞ 1❤❡ ❡♥1&❛♥1✬0
♦✛❡& ✐♥1❡♥❞❡❞ ❢♦& ♦❧❞ ❝♦♥0✉♠❡&0✱ pBOLD✳ ❚❤✐0 ♣&✐❝❡ ✐0 ❛✈❛✐❧❛❜❧❡ 1♦ ♦❧❞ ❝♦♥0✉♠❡&0 1❤❛1 ✈♦❧✲
✉♥1❛&✐❧② ❝❤♦♦0❡ 1♦ &❡✈❡❛❧ 1❤❛1 1❤❡② ♣&❡✈✐♦✉0❧② ♣✉&❝❤❛0❡❞ ❢&♦♠ 1❤❡ ✐♥❝✉♠❜❡♥1✳ ❋✐♥❛❧❧②✱ ♦❧❞
❝♦♥0✉♠❡&0 ❝❛♥ ♠❛0N✉❡&❛❞❡ ❛0 ♥❡✇ ❝♦♥0✉♠❡&0 ❛♥❞ ♦❜1❛✐♥ 1❤❡ ♥❡✇ ❝♦♥0✉♠❡& ♦✛❡& ❢&♦♠ B✱
♣&✐❝❡❞ ❛1 pBNEW ✳ ❚❤✐0 ❣✐✈❡0 1❤❡ ✉1✐❧✐1② ❢✉♥❝1✐♦♥
uOLD(•) =
β − pAOLD − tx ✐❢ 01❛②✐♥❣ ✇✐1❤ ❆
β − pBOLD − t(1− x)− s 0✇✐1❝❤ 1♦ ❇✱ &❡✈❡❛❧ 01❛1✉0
β − pBNEW − t(1− x)− s 0✇✐1❝❤ 1♦ ❇✱ ♠❛0N✉❡&❛❞❡
0 ♦1❤❡&✇✐0❡
✭✷✳✷✳✷✮
❉❡♥♦1❡ ❜② xNEW ❛♥❞ xOLD &❡0♣❡❝1✐✈❡❧② 1❤❡ ♠❛&❣✐♥❛❧ ❝♦♥0✉♠❡& 1②♣❡ ✐♥❞✐✛❡&❡♥1 ❜❡1✇❡❡♥
1❤❡ 1✇♦ ✜&♠0✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✹✹ ❍✐"#♦%②✕❇❛"❡❞ ,%✐❝❡ ❉✐"❝%✐♠✐♥❛#✐♦♥ ❛♥❞ ❲❡❧❢❛%❡ ✐♥ ❛ ●%♦✇✐♥❣ ▼❛%❦❡#
❚♦ ❣✐✈❡ ❢♦❝✉* ❢♦+ ,❤❡ ✇❡❧❢❛+❡ ❛♥❛❧②*✐*✱ ✇❡ ♥♦✇ ✐♠♣♦*❡ ,❤❡ ❛**✉♠♣,✐♦♥ ♦❢ ❢✉❧❧ ♠❛+❦❡,
❝♦✈❡+❛❣❡✱ *♦ ,❤❛, ❛❧❧ ❝♦♥*✉♠❡+* ♣✉+❝❤❛*❡ ❢+♦♠ ♦♥❡ ♦❢ ,❤❡ ✜+♠*✿
❆!!✉♠♣%✐♦♥ ✹ ✭❋✉❧❧ ▼❛+❦❡, ❈♦✈❡+❛❣❡✮✳ ❚❤❡ ✉$✐❧✐$② ♦❢ $❤❡ ❣♦♦❞✱ β✱ ✐- -✉✣❝✐❡♥$❧② ❤✐❣❤ $♦
❡♥-✉1❡ ❢✉❧❧ ♠❛1❦❡$ ❝♦✈❡1❛❣❡ ✉♥❞❡1 ❛❧❧ ♠❛1❦❡$ -$1✉❝$✉1❡-
❚❤✐* ❝♦♥❝❡♥,+❛,❡* ♦✉+ ❛,,❡♥,✐♦♥ ♦♥ ,❤❡ ✐**✉❡* ♦❢ ❞✐*,♦+,✐♦♥ ♦❢ ❝♦♥*✉♠❡+* ❜❡,✇❡❡♥ ✜+♠*✱
❛♥❞ ,❤❡ ,+❛❞❡✕♦✛ ❜❡,✇❡❡♥ ♣+♦❞✉❝, ✈❛+✐❡,② ❛♥❞ ❞✉♣❧✐❝❛,✐♦♥ ♦❢ ✜①❡❞ ❝♦*,*✳
❋✐1♠-✳ ❋✐+♠ i ∈ {A,B} ✐♥❝✉+* ❛ ❝♦♥*,❛♥, ♠❛+❣✐♥❛❧ ❝♦*, ci ❢♦+ ❡❛❝❤ ✉♥✐, ♦❢ ,❤❡ ❣♦♦❞ ♣+♦❞✉❝❡❞✳
■♥ ❛❞❞✐,✐♦♥✱ ❛ ✜①❡❞ ❝♦*, Fi ✐* *✉♥❦ ✇❤❡♥ ,❤❡ ✜+♠* ❞❡❝✐❞❡* ,♦ ❡♥,❡+ ✐♥ ,❤❡ ✜+*, *,❛❣❡✳ ❲❡
❛❧❧♦✇ ,❤❡ ✜①❡❞ ❝♦*, ,♦ ✈❛+② ❜❡,✇❡❡♥ ✜+♠*✱ ❜✉, ✐♠♣♦*❡ ,❤❡ ❛**✉♠♣,✐♦♥ ♦❢ ❝♦♠♠♦♥ ♠❛+❣✐♥❛❧
❝♦*,*
✹
✿
❆!!✉♠♣%✐♦♥ ✺✳ ❚❤❡ $✇♦ ✜1♠- ❤❛✈❡ ❡9✉❛❧ ♠❛1❣✐♥❛❧ ❝♦-$-✱ ✐✳❡✳ c = cA = cB
■♥ ,❤❡ *❡❝♦♥❞ ♣❡+✐♦❞✱ ,❤❡+❡ ❛+❡ ,✇♦ ❛*②♠♠❡,+✐❡* ❜❡,✇❡❡♥ ❡♥,+❛♥, ❛♥❞ ✐♥❝✉♠❜❡♥,✳ ❋✐+*,✱
,❤❡ ✐♥❝✉♠❜❡♥, ✐* ♣+♦,❡❝,❡❞ ❜② *✇✐,❝❤✐♥❣ ❝♦*, ❛♠♦♥❣ ♦❧❞ ❝♦♥*✉♠❡+* ✭♦❧❞ ❝♦♥*✉♠❡+* ♣❛② ❛
✉,✐❧✐,② ❝♦*, ✇❤❡♥ ♠♦✈✐♥❣ ,♦ ,❤❡ ❡♥,+❛♥,❀ *❡❡ ❜❡❧♦✇ ❢♦+ ❞❡,❛✐❧*✮✳ ❙❡❝♦♥❞✱ ,❤❡ ✐♥❝✉♠❜❡♥, ❝❛♥
+❡❝♦❣♥✐*❡ ♦❧❞ ❝♦♥*✉♠❡+* ✭♣❡+❤❛♣* ❜❡❝❛✉*❡ ,❤❡+❡ ✐* ❛ ❝♦♥,+❛❝, ✐♥ ♣❧❛❝❡✮ ❢+♦♠ ♥❡✇ ♦♥❡*✳ ❚❤✐*
❛❧❧♦✇* ,❤❡ ✐♥❝✉♠❜❡♥, ,♦ ♦✛❡+ ❞✐✛❡+❡♥, ♣+✐❝❡* pAOLD ❛♥❞ pBNEW ❢♦+ ,❤❡ ,✇♦ ❝♦♥*✉♠❡+ *❡❣♠❡♥,*✱
❡♥❣❛❣✐♥❣ ✐♥ ♣+✐❝❡ ❞✐*❝+✐♠✐♥❛,✐♦♥ ♦♥ ♦❜*❡+✈❛❜❧❡*✳ ❚❤❡ ❡♥,+❛♥, ❝❛♥♥♦, ❞✐+❡❝,❧② ❞✐*,✐♥❣✉✐*❤
❝♦♥*✉♠❡+*✱ ❜✉, ♠❛② ❝♦♠❡ ,♦ ❦♥♦✇ ,❤✐* ✐♥❢♦+♠❛,✐♦♥ ✐❢ ,❤❡ ❝♦♥*✉♠❡+* ❝❤♦♦*❡* ,♦ +❡✈❡❛❧ ✐,
✭❡✳❣✳ ❜② *❤♦✇✐♥❣ ❛ +❡❝❡✐♣, ❢+♦♠ ,❤❡ ✐♥❝✉♠❜❡♥,✮✳ ❚❤✉* ,❤❡ ❡♥,+❛♥, ❡♥❣❛❣❡* ✐♥ *❡❝♦♥❞✕❞❡❣+❡❡
♣+✐❝❡ ❞✐*❝+✐♠✐♥❛,✐♦♥✱ ❛♥❞ ♦✛❡+* pBOLD ❛♥❞ pBNEW +❡*♣❡❝,✐✈❡❧②✳ ❆**✉♠✐♥❣ pBOLD < pBNEW ✕ *♦
,❤❡ ❡♥,+❛♥,✬* ♣+✐❝❡ ❞✐*❝+✐♠✐♥❛,✐♦♥ ✐* ✐♥❝❡♥,✐✈❡ ❝♦♠♣❛,✐❜❧❡ ✕ ,❤❡ ♣+♦✜, ❢✉♥❝,✐♦♥* ♦❢ ,❤❡ ,✇♦
✜+♠*✱ ❛❢,❡+ ✜①❡❞ ❝♦*,* ❤❛✈❡ ❜❡❡♥ *✉♥❦✱ ❝❛♥ ❜❡ ✇+✐,,❡♥ ❛*
πA(~p) = (1− θ)xOLD(pAOLD, p
BOLD)
(pAOLD − c
)✭✷✳✷✳✸✮
+ θxNEW (pANEW , pBNEW )(pANEW − c
)
πB(~p) = (1− θ)(1− xOLD(pAOLD, p
BOLD))
(pBOLD − c
)✭✷✳✷✳✹✮
+ θ(1− xNEW (pANEW , pBNEW ))(pBNEW − c
)
✇❤❡+❡ ❢♦+ ♥♦,❛,✐♦♥❛❧ *✐♠♣❧✐❝✐,②✱ ~p = (pAOLD, pANEW , pBOLD, p
BNEW )✱ ,❤❡ ✈❡❝,♦+ ♦❢ *❡❝♦♥❞✕♣❡+✐♦❞
♣+✐❝❡*✳
✹
❚❤✐# ❛##✉♠♣(✐♦♥ ✐# ❢♦, ❝♦♥✈❡♥✐❡♥❝❡ ❛♥❞ ✇✐(❤♦✉( ❧♦## ♦❢ ❣❡♥❡,❛❧✐(②
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✷ ✹✺
▲✐♠✐#$ #♦ &'✐❝❡ ❉✐$❝'✐♠✐♥❛#✐♦♥✳ ❇❡❤❛✈✐♦✉+ ❜❛-❡❞ ♣+✐❝❡✕❞✐-❝+✐♠✐♥❛4✐♦♥ ♠❡❛♥- ❝❤❛+❣✐♥❣ ❞✐❢✲
❢❡+❡♥4 ♣+✐❝❡- ❛❝❝♦+❞✐♥❣ 4♦ ♣✉+❝❤❛-❡ -4❛4✉-✳ ■♥ ❧✐♥❡ ✇✐4❤ ❝♦♠♠♦♥ ❝♦♠♣❡4✐4✐♦♥ ❧❛✇ ♣+❛❝4✐❝❡✱
✇❡ ❝♦♥-✐❞❡+ 4❤❡ ♣♦--✐❜✐❧✐4② 4❤❛4 4❤❡ ❞❡❣+❡❡ ♦❢ ♣+✐❝❡ ❞✐-❝+✐♠✐♥❛4✐♦♥ ❜② 4❤❡ ✐♥❝✉♠❜❡♥4 ♠❛② ❜❡
❝♦♥-4+❛✐♥❡❞ ❜✉4 ❞♦ ♥♦4 ❛❧❧♦✇ ❢♦+ ❝♦♥-4+❛✐♥4- 4♦ 4❤❡ ❡♥4+❛♥4✬- ♣+✐❝✐♥❣ -4+❛4❡❣②✳ ■♥ ♣❛+4✐❝✉❧❛+✱
❛ ❝♦♠♣❡4✐4✐♦♥ ❛✉4❤♦+✐4② ♠❛② ❧✐♠✐4 4❤❡ ✐♥❝✉♠❜❡♥4 4♦ ❛ ♠❛①✐♠✉♠ ♣+✐❝❡ ❞✐✛❡+❡♥❝❡ q ❜❡4✇❡❡♥
4❤❡ 4✇♦ ♠❛+❦❡4 -❡❣♠❡♥4-✿
|pAOLD − pANEW | ≤ q ✭✷✳✷✳✺✮
❚❤✉- q = 0 ✇♦✉❧❞ ❝♦++❡-♣♦♥❞ 4♦ ❛ ❝♦♠♣❧❡4❡ ❜❛♥ ♦❢ ♣+✐❝❡ ❞✐-❝+✐♠✐♥❛4✐♦♥✱ ✇❤✐❧❡ ✐♥4❡+♠❡❞✐❛4❡
✈❛❧✉❡- ✐♠♣♦-❡ -♦♠❡ +❡-4+❛✐♥4 ♦♥ 4❤❡ ♣+✐❝✐♥❣ -4+❛4❡❣② ♦❢ 4❤❡ ✐♥❝✉♠❜❡♥4 ✇✐4❤♦✉4 ❜❛♥♥✐♥❣
❇❇F❉ ❡♥4✐+❡❧②✳
❋♦+ 4❤❡ ♣✉+♣♦-❡ ♦❢ 4❤❡ ♣+❡-❡♥4 ❛♥❛❧②-✐-✱ ✇❡ 4❛❦❡ q 4♦ ❜❡ ❛ ♣❛+❛♠❡4❡+ ❛♥❞ -✐♠✉❧❛4❡ 4❤❡
❝♦♠♣❡4✐4✐✈❡ ❛♥❞ ✇❡❧❢❛+❡ ❝♦♥-❡I✉❡♥❝❡- ♦❢ ♣♦--✐❜❧❡ +❡-4+✐❝4✐♦♥- ♦♥ ♣+✐❝❡ ❞✐-❝+✐♠✐♥❛4✐♦♥❀ ❤❡♥❝❡
4❤❡ ❝♦♠♣❡4✐4✐♦♥ ❛✉4❤♦+✐4② ✐- ♥♦4 ❛ -4+❛4❡❣✐❝ ♣❧❛②❡+ ✐♥ 4❤❡ ♠♦❞❡❧✳
❙♦❧✉#✐♦♥ ❈♦♥❝❡♣#✳ ❉✉❡ 4♦ 4❤❡ -❡I✉❡♥4✐❛❧ ♥❛4✉+❡ ♦❢ 4❤❡ ❣❛♠❡✱ ♦✉+ -♦❧✉4✐♦♥ ❝♦♥❝❡♣4 ✐- -✉❜✲
❣❛♠❡ ♣❡+❢❡❝4 ◆❛-❤ ❡I✉✐❧✐❜+✐✉♠ ✭❙F◆❊✮✳ ❊I✉✐❧✐❜+✐✉♠ ♣+♦❝❡❡❞- ❜② ❛♥❛❧②-✐♥❣ ♠❛+❦❡4 ♦✉4✲
❝♦♠❡- ✐♥ ❡❛❝❤ ♦❢ 4❤❡ ♣♦--✐❜❧❡ 4②♣❡- ♦❢ -✉❜❣❛♠❡- ✭❝♦♠♣❡4✐4✐♦♥✱ ✐♥❝✉♠❜❡♥4 ♠♦♥♦♣♦❧②✱ ❡♥4+❛♥4
♠♦♥♦♣♦❧②✮✱ ❜❡❢♦+❡ 4✉+♥✐♥❣ 4♦ 4❤❡ ♠❛+❦❡4 ❡♥4+② -4❛❣❡✳
✷✳✸ ❊$✉✐❧✐❜)✐✉♠ ❆♥❛❧②/✐/
❚❤✐- -❡❝4✐♦♥ ❞❡✈❡❧♦♣- 4❤❡ -✉❜❣❛♠❡ ♣❡+❢❡❝4 ❡I✉✐❧✐❜+✐❛ ♦❢ 4❤❡ ♠♦❞❡❧✳ ❋✐+-4✱ ■ ❛♥❛❧②-❡ ♣+✐❝❡
❝♦♠♣❡4✐4✐♦♥ ✉♥❞❡+ ❞✉♦♣♦❧② ✇✐4❤ ❛♥❞ ✇✐4❤♦✉4 ❧✐♠✐4- 4♦ ♣+✐❝❡ ❞✐-❝+✐♠✐♥❛4✐♦♥ ❛♥❞ ♣+♦✈✐❞❡ +❡❧❡✲
✈❛♥4 ❝♦♠♣❛+❛4✐✈❡ -4❛4✐❝- +❡-✉❧4-✳ ❚❤❡♥ ■ ❛♥❛❧②-❡ ♠♦♥♦♣♦❧② ♣+✐❝✐♥❣ ✇❤❡♥ ♦♥❧② 4❤❡ ✐♥❝✉♠❜❡♥4
♦+ ❡♥4+❛♥4 ✐- ❛❝4✐✈❡ ✐♥ 4❤❡ ♠❛+❦❡4✳ ❋✐♥❛❧❧②✱ -✉❜-❡❝4✐♦♥ ✷✳✸✳✹ 4✉+♥- 4♦ 4❤❡ ✜+-4 -4❛❣❡ ✐♥ ✇❤✐❝❤
✜+♠ ❡♥4+②✴❡①✐4 ✐- ❞❡4❡+♠✐♥❡❞✳
✷✳✸✳✶ ❯♥&❡❣✉❧❛,❡❞ ❉✉♦♣♦❧②
❈♦♥$✉♠❡' ❇❡❤❛✈✐♦✉'✿ ●✐✈❡♥ 4❤❛4 ❜♦4❤ ✜+♠- ❛+❡ ❛❝4✐✈❡ ✐♥ 4❤❡ ♠❛+❦❡4✱ ♦❧❞ ❝♦♥-✉♠❡+- ❤❛✈❡
❛ ❝❤♦✐❝❡ ❜❡4✇❡❡♥ pAOLD, pBOLD ❛♥❞ pBNEW ✐❢ 4❤❡② ❝❤♦♦-❡ ♥♦4 +❣❡✈❡❛❧ 4❤❡✐+ ♣✉+❝❤❛-❡ -4❛4✉- 4♦
4❤❡ ❡♥4+❛♥4✳ ❖❧❞ ❝♦♥-✉♠❡+- -✇✐4❝❤✐♥❣ 4♦ 4❤❡ ❡♥4+❛♥4 +❡✈❡❛❧ 4❤❡✐+ ♣✉+❝❤❛-❡ -4❛4✉- ✐❢ pBNEW ≥pBOLD
✺
❀ ♦4❤❡+✇✐-❡✱ ♦❧❞ ❝♦♥-✉♠❡+- -✇✐4❝❤✐♥❣ 4♦ B ♠❛-I✉❡+❛❞❡ ❛- ♥❡✇ ❛♥❞ ♣❛② pBNEW ✳ ❚❤✉-
✺
!❡❝✐%❡❧②✱ )❤❡ ❛%%✉♠♣)✐♦♥ ✐% )❤❛) ♦❧❞ ❝♦♥%✉♠❡!% ❝❛♥ ♣!♦✈❡ )❤❡✐! %)❛)✉% ✕ ❡✳❣✳ ❜② %❤♦✇✐♥❣ ❛ !❡❝❡✐♣) ✐%%✉❡❞
❜② ✜!♠ A ✐♥ )❤❡ ✜!%) ♣❡!✐♦❞ ✕ ✇❤✐❧❡ ♥❡✇ ❝♦♥%✉♠❡!% ❝❛♥♥♦) ♣!♦❞✉❝❡ ❛ ❢❛❧%✐✜❡❞ !❡❝❡✐♣)
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✹✻ ❍✐"#♦%②✕❇❛"❡❞ ,%✐❝❡ ❉✐"❝%✐♠✐♥❛#✐♦♥ ❛♥❞ ❲❡❧❢❛%❡ ✐♥ ❛ ●%♦✇✐♥❣ ▼❛%❦❡#
"❤❡ ♠❛'❣✐♥❛❧ ❝♦♥.✉♠❡'. ❛'❡ ❣✐✈❡♥ ❜②✿
xOLD =
pBOLD−pAOLD+t+s
2t✐❢ pBOLD ≤ pBNEW
pBOLD−pANEW+t+s
2t♦"❤❡'✇✐.❡
✭✷✳✸✳✶✮
xNEW =pBNEW − pANEW + t
2t✭✷✳✸✳✷✮
❲❤❡♥ .✇✐"❝❤✐♥❣ ❝♦.". ❛'❡ ✈❡'② ❤✐❣❤✱ "❤❡ ❡♥"'❛♥" ♠❛② ♥♦" ❜❡ ❛❜❧❡ ❡✛❡❝"✐✈❡❧② ❝♦♠♣❡"❡ ❢♦'
"❤❡ ♦❧❞ .❡❣♠❡♥"❀ ✐♥ "❤✐. ❝❛.❡✱ ♦❧❞ ❝♦♥.✉♠❡'. ✇♦✉❧❞ ❜❡ ❛ ✏.❤❡❧"❡'❡❞ .❡❣♠❡♥"✑✳ ❆. ✇✐❧❧ ❜❡❝♦♠❡
❝❧❡❛' .❤♦'"❧②✱ "❤❡ .❡❣♠❡♥" ♦❢ ♦❧❞ ❝♦♥.✉♠❡'. ❤❛. ♣♦.✐"✐✈❡ .✇✐"❝❤✐♥❣ "♦ "❤❡ ❡♥"'❛♥" ♦♥❧② ✐❢
❝♦♥❞✐"✐♦♥ ❈✶ ❤♦❧❞.✿
s ≤ 3t ✭❈✶✮
❲❡ .❤❛❧❧ ❛..✉♠❡ "❤❛" ❝♦♥❞✐"✐♦♥ ❈✶ ✐. .❛"✐.✜❡❞✳ ❍❡♥❝❡✱ ❣✐✈❡♥ ♣'✐❝❡. (pAOLD, pANEW ) ❛♥❞
(pBOLD, pBNEW )✱ ❡H✉❛"✐♦♥ ✷✳✸✳✶ ❣✐✈❡. "❤❡ ♠❛.. xOLD ♦❢ ❝♦♥.✉♠❡'. ♣✉'❝❤❛.✐♥❣ ❢'♦♠ ✜'♠ A
✐♥ "❤❡ ♦❧❞ ❝♦♥.✉♠❡' .❡❣♠❡♥"✳ ❇② "❤❡ ❢✉❧❧ ❝♦✈❡'❛❣❡ ❛..✉♠♣"✐♦♥✱ "❤❡ ♠❛.. ♦❢ ❝♦♥.✉♠❡'. ♣✉'✲
❝❤❛.✐♥❣ ❢'♦♠ B ✐. .✐♠♣❧② 1−xOLD❀ ❛♥❛❧♦❣♦✉. ❡①♣'❡..✐♦♥. ❤♦❧❞ ❢♦' "❤❡ ❝❛.❡ ♦❢ ♥❡✇ ❝♦♥.✉♠❡'.✳
!✐❝❡ ❙❡&&✐♥❣✿ ❈♦♥.✐❞❡' ✜'." "❤❡ ✐♥❝✉♠❜❡♥" ✜'♠ A✳ ❙♦❧✈✐♥❣ "❤❡ ✜'."✕♦'❞❡' ❝♦♥❞✐"✐♦♥ ♦❢
❡H✉❛"✐♦♥ ✷✳✷✳✸ ✇✐"❤ '❡.♣❡❝" "♦ pAOLD ❛♥❞ pANEW '❡.♣❡❝"✐✈❡❧② ②✐❡❧❞.
p∗AOLD(~pB) =
pBOLD+t+s+c
2✐❢ pBOLD ≤ pBNEW
pBNEW+t+s+c
2♦"❤❡'✇✐.❡
✭✷✳✸✳✸✮
p∗ANEW (~pB) =pBNEW + t+ c
2✭✷✳✸✳✹✮
❉✉❡ "♦ "❤❡ ❝♦♥❝❛✈✐"② "❤❡ ♠♦❞❡❧✱ ✐" ❝❛♥ ❜❡ ✈❡'✐✜❡❞ ❞✐'❡❝"❧② "❤❛" "❤❡ .❡❝♦♥❞✕♦'❞❡' ❝♦♥❞✐"✐♦♥.
❤♦❧❞✳ ❙❡❝♦♥❞✱ ❣✐✈❡♥ ❛..✉♠♣"✐♦♥ ❈✶✱ "❤❡ ❡H✉✐❧✐❜'✐✉♠ ✐. ❣✉❛'❛♥"❡❡❞ "♦ ❜❡ ✐♥"❡'✐♦'✳
◆♦✇ "✉'♥ "♦ "❤❡ ❡♥"'❛♥" B✳ ❚❤❡ ♣'♦❜❧❡♠ ✐. ✷✳✷✳✹✱ .✉❜❥❡❝" "♦ "❤❡ ✐♥❝❡♥"✐✈❡✕❝♦♠♣❛"✐❜✐❧✐"②
❝♦♥."'❛✐♥" ♦❢ ❝♦♥.✉♠❡'. pBOLD ≤ pBNEW ✳ ❲'✐"✐♥❣ ✐♥ ❑✉❤♥✕❚✉❝❦❡' ❢♦'♠ ②✐❡❧❞.
L = (1− θ)(1− xOLD)(pAOLD, p
BOLD)
(pBOLD − c
)✭✷✳✸✳✺✮
+ θ(1− xNEW (pANEW , pBNEW ))(pBNEW − c
)− λ(pBOLD − pBNEW )
❈♦♥.✐❞❡' ✜'." "❤❡ ❝❛.❡ ✇❤❡'❡ "❤❡ ✐♥❝❡♥"✐✈❡ ❝♦♥."'❛✐♥" ❞♦❡. ♥♦" ❜✐♥❞ ✭λ = 0✮✳ ❚❤❡♥✱ "❤❡
.♦❧✉"✐♦♥ ♦❢ "❤❡ ♣'♦❜❧❡♠ ✐. ❣✐✈❡♥ ❜②
p∗BOLD(~pA) =
pAOLD + t− s+ c
2✭✷✳✸✳✻✮
p∗BNEW ( ~pA) =pANEW + t+ c
2✭✷✳✸✳✼✮
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✷ ✹✼
✇❤✐❝❤ ✐& ❢❡❛&✐❜❧❡ ❛& ❧♦♥❣ ❛& pAOLD ≤ pANEW + s✳
◆♦✇ ❝♦♥&✐❞❡2 3❤❡ ❝❛&❡ ✇❤❡2❡ 3❤❡ ❝♦♥&32❛✐♥3 ❜✐♥❞& ✭λ 6= 0✮✳ ❚❤❡♥✱ ✇❡ ♠✉&3 ❤❛✈❡ ❛&
&♦❧✉3✐♦♥
p∗BOLD(~pA) = p∗BNEW ( ~pA) =
(1− θ)pAOLD + θpANEW − t+ s− c
2✭✷✳✸✳✽✮
❱❛❧✉❡ ♦❢ ❈♦♥)✉♠❡+ ■♥❢♦+♠❛-✐♦♥✿ ❚❤❡ ✜2&3 ✐♠♣♦23❛♥3 ♦❜&❡2✈❛3✐♦♥ ❝♦♥❝❡2♥& 3❤❡ ❡①3❡♥3 3♦
✇❤✐❝❤ ❡♥32❛♥3 ✐& ❞✐&❛❞✈❛♥3❛❣❡❞ ❜② 3❤❡ ❧❛❝❦ ♦❢ ❤❡2 ❛❜✐❧✐3② 3♦ ♦❜&❡2✈❡ ❝♦♥&✉♠❡2&✬ ♣✉2❝❤❛&❡
&3❛3✉&✳ ❆& 3❤❡ ❜❡&3 2❡&♣♦♥&❡ ❛♥❛❧②&✐& &❤♦✇❡❞✱ ❢♦2 &♦♠❡ ♣2✐❝❡ ♣2♦✜❧❡& ❜② 3❤❡ ✐♥❝✉♠❜❡♥3✱ 3❤✐&
❝♦♥&32❛✐♥3 ✐& ❜✐♥❞✐♥❣ ❛♥❞ ♠❛② ❛❞✈❡2&❡❧② ✐♠♣❛❝3 ♣2♦✜3&✳ ❚❤✐& ♦❝❝✉2& ✇❤❡♥ 3❤❡ ✐♥❝✉♠❜❡♥3✬&
♣2✐❝❡ ♦✛❡2❡❞ 3♦ ♦❧❞ ❝♦♥&✉♠❡2& ❡①❝❡❡❞& 3❤❡ ♣2✐❝❡ ♦✛❡2❡❞ 3♦ ♥❡✇ ❝♦♥&✉♠❡2& ❜② ♠♦2❡ 3❤❛♥
s✳ ❨❡3✱ 3❤❡ ❢♦❧❧♦✇✐♥❣ ♣2♦♣♦&✐3✐♦♥ &❤♦✇& 3❤❛3 3❤❡ ✐♥❝✉♠❜❡♥3 ✇✐❧❧ ♥♦3 &❡3 &✉❝❤ ♣2✐❝❡& ✐♥
❡G✉✐❧✐❜2✐✉♠✿
!♦♣♦$✐&✐♦♥ ✷✳✸✳✶✳ ❚❤❡ ✐♥❝❡♥-✐✈❡ ❝♦♠♣❛-✐❜✐❧✐-② ❝♦♥)-+❛✐♥- ♦❢ -❤❡ ❡♥-+❛♥- ✐) ♥♦- ❜✐♥❞✐♥❣ ♦♥
♣+✐❝✐♥❣ )-+❛-❡❣✐❡) ✐♥ ❛♥② ❡9✉✐❧✐❜+✐✉♠
:+♦♦❢✳ ❈♦♥&✐❞❡2 ❛♥ ❡G✉✐❧✐❜2✐✉♠ &32❛3❡❣② ♣2♦✜❧❡ ✐♥ ✇❤✐❝❤ 3❤❡ ✐♥❝❡♥3✐✈❡ ❝♦♥&32❛✐♥3 ♦♥ B ✐&
❜✐♥❞✐♥❣✳ ❚❤✐& ✐♠♣❧✐❡& pBOLD = pBNEW ✳ ❙❡❝♦♥❞✱ ❡G✉✐❧✐❜2✐✉♠ 2❡G✉✐2❡& 3❤❛3 (pAOLD, pANEW )
❛2❡ ✐♥ 3❤❡ 2❡&♣♦♥&❡✱ ✐✳❡✳ &❛3✐&❢②✐♥❣ ❡G✉❛3✐♦♥& ✷✳✸✳✸ ❛♥❞ ✷✳✸✳✹✳ ❈♦♠❜✐♥✐♥❣ 3❤❡&❡ 3✇♦ ②✐❡❧❞&
pAOLD = pANEW + s2✱ ✇❤✐❝❤ ♠✉&3 ❤♦❧❞ ✐♥ 3❤❡ ❡G✉✐❧✐❜2✐✉♠✳
❍♦✇❡✈❡2✱ ✐♥ 3❤✐& ❝❛&❡ 3❤❡ ❡♥32❛♥3 B ❤❛& ❛♥ ✉♥❝♦♥&32❛✐♥❡❞ ❜❡&3 2❡&♣♦♥&❡ pBOLD < pBNEW ✱
✇❤✐❝❤ ✐& ❛❧&♦ ❢❡❛&✐❜❧❡ ✭&✐♥❝❡ pAOLD ≤ pANEW + s✮✳ ❍❡♥❝❡✱ 3❤❡ &32❛3❡❣② ♣2♦✜❧❡ ✇✐3❤ ❜✐♥❞✐♥❣
✐♥❝❡♥3✐✈❡ ❝♦♠♣❛3✐❜✐❧✐3② ❝♦♥&32❛✐♥3 ❝❛♥♥♦3 ❝♦♥&3✐3✉3❡ ❛♥ ❡G✉✐❧✐❜2✐✉♠✳
❚❤✉&✱ 3❤❡ ❡♥32❛♥3 ✐& ❛❜❧❡ 3♦ ❡①32❛❝3 3❤❡ ✐♥❢♦2♠❛3✐♦♥ ♦♥ ♣✉2❝❤❛&❡ &3❛3✉& ❢2♦♠ ❝♦♥&✉♠❡2&
3❤2♦✉❣❤ &❡❝♦♥❞✕❞❡❣2❡❡ ♣2✐❝❡ ❞✐&❝2✐♠✐♥❛3✐♦♥❀ 3❤❡ ❡G✉✐❧✐❜2✐✉♠ &32❛3❡❣② ❛♥❞ ♣2♦✜3& 3❤✉& ❝♦✐♥✲
❝✐❞❡ ✇✐3❤ ❛♥ ❛❧3❡2♥❛3✐✈❡ ♠♦❞❡❧ ✇❤❡2❡ 3❤❡ ♣✉2❝❤❛&❡ &3❛3✉& ✐& ♣✉❜❧✐❝❧② ♦❜&❡2✈❛❜❧❡✳ ■♥ ❝♦♥32❛&3✱
●❡❤2✐❣ ❡3 ❛❧✳ ✭✷✵✶✶✮ ❞♦ ♥♦3 ❛❧❧♦✇ 3❤❡ ❡♥32❛♥3 3♦ ✉&❡ &❡❝♦♥❞✕❞❡❣2❡❡ ♣2✐❝❡ ❞✐&❝2✐♠✐♥❛3✐♦♥✱
❞✐2❡❝3❧② ✐♠♣♦&✐♥❣ ✉♥✐❢♦2♠ ♣2✐❝✐♥❣ ❛& ❛ ❝♦♥&32❛✐♥3 ♦♥ 3❤❡ ❡♥32❛♥3✬& &32❛3❡❣②✳
❆♥② ❡G✉✐❧✐❜2✐✉♠ 3❤✉& ✐♥✈♦❧✈❡& ♣2✐❝❡ ❞✐&❝2✐♠✐♥❛3✐♦♥ ❜② ❜♦-❤ ✜2♠&✳ ■3 2❡♠❛✐♥& 3♦ ❞❡2✐✈❡
3❤❡ ❡①♣❧✐❝✐3❧② 3❤❡ ♠❛2❦❡3 ♦✉3❝♦♠❡&✿
!♦♣♦$✐&✐♦♥ ✷✳✸✳✷✳ ❯♥❞❡+ ❞✉♦♣♦❧② ❛♥❞ ♥♦ ❝♦♥)-+❛✐♥- ♦♥ ♣+✐❝❡ ❞✐)❝+✐♠✐♥❛-✐♦♥ ✐) ✐♠♣♦)❡❞✱
-❤❡ ✉♥✐9✉❡ ❡9✉✐❧✐❜+✐✉♠ ❤❛)
✶✳ ❖❧❞ ❝♦♥)✉♠❡+) ✇✐-❤ xOLD ≤ 12+ s
6t❛♥❞ ♥❡✇ ❝♦♥)✉♠❡+) ✇✐-❤ xNEW ≤ 1
2♣✉+❝❤❛)❡ ❢+♦♠
✜+♠ A❀ ♦-❤❡+✇✐)❡✱ -❤❡② ♣✉+❝❤❛)❡ ❢+♦♠ B
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✹✽ ❍✐"#♦%②✕❇❛"❡❞ ,%✐❝❡ ❉✐"❝%✐♠✐♥❛#✐♦♥ ❛♥❞ ❲❡❧❢❛%❡ ✐♥ ❛ ●%♦✇✐♥❣ ▼❛%❦❡#
✷✳ ❋✐$♠ A &❡(& ♣$✐❝❡& pAOLD = t+c+ s3❛♥❞ pANEW = t+c❀ ❋✐$♠ B ❝❤❛$❣❡& pBOLD = t+c− s
3
❛♥❞ pBNEW = t+ c
✸✳ ❊3✉✐❧✐❜$✐✉♠ ♣$♦✜(& ❛$❡ ❣✐✈❡♥ ❜②
π∗ADUO =s2(1− θ)
18t+
s(1− θ)
3+
t
2
π∗BDUO =s2(1− θ)
18t− s(1− θ)
3+
t
2
;$♦♦❢✳ ❇② ♣%♦♣♦'✐)✐♦♥ ✷✳✸✳✶✱ )❤❡ ❡2✉✐❧✐❜%✐✉♠ ♠✉') ✐♥✈♦❧✈❡ ♣%✐❝❡ ❞✐'❝%✐♠✐♥❛)✐♦♥ ❜② )❤❡ ❡♥)%❛♥)✳
❚❛❦✐♥❣ )❤❡ ❛♣♣%♦♣%✐❛)❡ '❡❝)✐♦♥' ♦❢ )❤❡ ❜❡') %❡'♣♦♥'❡ ❢✉♥❝)✐♦♥' ❡2✉❛)✐♦♥ ✭✷✳✸✳✸✲✷✳✸✳✼✮ ②✐❡❧❞'
❛ ✹①✹ ❧✐♥❡❛% '②')❡♠ ✇✐)❤ ❢✉❧❧ %❛♥❦✳ ❙♦❧✈✐♥❣ )❤✐' '②')❡♠ ②✐❡❧❞' ❛' )❤❡ ✉♥✐2✉❡ '♦❧✉)✐♦♥ )❤❡
♣%✐❝❡' ❝❧❛✐♠❡❞ ✐♥ ✭✐✐✮✳ ❙✉❜')✐)✉)✐♥❣ )❤❡'❡ ♣%✐❝❡' ✐♥)♦ ❡2✉❛)✐♦♥' ✭✷✳✸✳✶✲✷✳✸✳✷✮ ②✐❡❧❞' ❡2✉✐❧✐❜%✐✉♠
♠❛%❣✐♥❛❧ ❝♦♥'✉♠❡%' ❢♦✉♥❞ ✐♥ ✭✐✐✮✳ ❋✐♥❛❧❧②✱ ♣❛%) ✭✐✐✐✮ ❝♦♥)❛✐♥' )❤❡ ♣%♦✜) ❢✉♥❝)✐♦♥' ✭✷✳✷✳✸✲✷✳✷✳✹✮
❡✈❛❧✉❛)❡❞ ❛) ❡2✉✐❧✐❜%✐✉♠✳
❚♦ ❛''✉%❡ )❤❛) ❛''✉♠♣)✐♦♥ ✹ ✐' '❛)✐'✜❡❞✱ )❤❡ ✉)✐❧✐)② ♦❢ ❡❛❝❤ ❝♦♥'✉♠❡% ❤❛' )♦ ❡①❝❡❡❞ )❤❡
%❡'❡%✈❛)✐♦♥ ❧❡✈❡❧ ♦❢ ③❡%♦✳ ❙✐♥❝❡ )❤❡ ♠❛%❣✐♥❛❧ ♦❧❞ ❝♦♥'✉♠❡% ❤❛' )❤❡ ❧♦✇❡') ✉)✐❧✐)② ✐♥ ❡2✉✐❧✐❜✲
%✐✉♠✱ ❡✈❛❧✉❛)✐♥❣ ❡2✉❛)✐♦♥ ✷✳✷✳✷ ❛) )❤❡ ❡2✉✐❧✐❜%✐✉♠ ②✐❡❧❞' )❤❡ ❝♦♥')%❛✐♥) ♦♥ )❤❡ ♣❛%❛♠❡)❡%'
%❡2✉✐%❡❞ )♦ '❛)✐'❢② )❤❡ ❛''✉♠♣)✐♦♥✿
β ≥ 3t+ s
2+ c ✭J✶✮
❯♥❞❡% ✉♥❝♦♥')%❛✐♥❡❞ ♣%✐❝❡ ❞✐'❝%✐♠✐♥❛)✐♦♥✱ ❡♥)%❛♥) ❛♥❞ ✐♥❝✉♠❜❡♥) ❡✛❡❝)✐✈❡❧② ❝♦♠♣❡)❡
'❡♣❛%❛)❡❧② ✐♥ )❤❡ ♦❧❞ ❛♥❞ ♥❡✇ ❝♦♥'✉♠❡% ♠❛%❦❡)'✳ ■♥ )❤❡ ♥❡✇ ❝♦♥'✉♠❡% ♠❛%❦❡)✱ )❤❡%❡ ✐' ♥♦
%❡♥) )♦ ❜❡ ❡❛%♥❡❞ ❢%♦♠ '✇✐)❝❤✐♥❣ ❝♦')'❀ ❣✐✈❡♥ )❤❛) ♠❛%❣✐♥❛❧ ❝♦')' ❛%❡ ❡2✉❛❧✱ ❡♥)%❛♥) ❛♥❞
✐♥❝✉♠❜❡♥) ❞✐✈✐❞❡ )❤✐' ♠❛%❦❡) ❡✈❡♥❧②✳ ❋♦% ♦❧❞ ❝♦♥'✉♠❡%'✱ )❤❡ ✐♥❝✉♠❜❡♥) ❝❤❛%❣❡' ❛ ♣%❡♠✐✉♠
♣%✐❝❡ )♦ %❡❝♦✈❡% %❡♥) ♦♥ )❤❡ '✇✐)❝❤✐♥❣ ❝♦')❀ )❤❡ ❡♥)%❛♥) ✏♣❛②' )♦ '✇✐)❝❤✑ ✭❈❤❡♥✱ ✶✾✾✼✮ ❛♥❞
♦✛❡%' ❛ ❞✐'❝♦✉♥) ✈✐'✕❛✕✈✐' )❤❡ ♣%✐❝❡ ♥❡✇ ❝♦♥'✉♠❡%' ♣❛②✳ ❋✉%)❤❡%♠♦%❡✱ )❤❡ ✐♥❝✉♠❜❡♥) %❡♠❛✐♥'
❞♦♠✐♥❛♥) ✐♥ )❤❡ ♠❛%❦❡) ❢♦% ♦❧❞ ❝♦♥'✉♠❡%' ✕ ❤❛✈✐♥❣ ♠♦%❡ )❤❛♥ ✺✵✪ ♠❛%❦❡) '❤❛%❡ ✕ ❛' ✐♥
●❡❤%✐❣ ❡) ❛❧✳ ✭✷✵✶✶✮ ❛♥❞ ❇♦✉❝❦❛❡%) ❡) ❛❧✳ ✭✷✵✶✸✮✳
❚❤❡ ❤✐❣❤❡% '✇✐)❝❤✐♥❣ ❝♦')' ❛%❡✱ )❤❡ ❣%❡❛)❡% )❤❡ ♣%♦✜) ♦❢ )❤❡ ✐♥❝✉♠❜❡♥) ❛♥❞ )❤❡ ❧♦✇❡%
♣%♦✜)' ♦❢ )❤❡ ❡♥)%❛♥)
✻
✳ ●%❡❛)❡% )%❛♥'♣♦%)❛)✐♦♥ ❝♦')' t ✐♠♣%♦✈❡ )❤❡ ♣%♦✜)' ♦❢ ❜♦)❤ ✜%♠'✳
❋✐♥❛❧❧② ♥♦)❡ )❤❛) )❤❡ ♠❛%❣✐♥❛❧ ❝♦') ❞♦❡' ♥♦) ❛✛❡❝) ♣%♦✜)' ✐♥ ❡2✉✐❧✐❜%✐✉♠✱ ❜❡❝❛✉'❡ )❤❡%❡ ✐'
♣❡%❢❡❝) ❝♦') ♣❛''✕)❤%♦✉❣❤ )♦ ❝♦♥'✉♠❡% ♣%✐❝❡'✳
✻
▼♦♥♦#♦♥✐❝✐#② ♦❢ ❡♥#)❛♥#✬, ♣)♦✜# ✇✐#❤ )❡,♣❡❝# #♦ ,✇✐#❝❤✐♥❣ ❝♦,# ❢♦❧❧♦✇, ❢)♦♠ ❈✶
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✷ ✹✾
✷✳✸✳✷ ❉✉♦♣♦❧② ✇✐+❤ ❘❡❣✉❧❛+❡❞ 23✐❝❡ ❉✐5❝3✐♠✐♥❛+✐♦♥
❲❡ ♥♦✇ ❛❧❧♦✇ ❢♦* ❧✐♠✐-. -♦ ♣*✐❝❡ ❞✐.❝*✐♠✐♥❛-✐♦♥ ✐♠♣♦.❡❞ ❜② -❤❡ ❝♦♠♣❡-✐-✐♦♥ ❛✉-❤♦*✐-② ♦♥ -❤❡
✐♥❝✉♠❜❡♥-✬. ❡①-❡♥- ♦❢ ♣*✐❝❡ ❞✐.❝*✐♠✐♥❛-✐♦♥✳
!♦♣♦$✐&✐♦♥ ✷✳✸✳✸✳ ❯♥❞❡$ ❞✉♦♣♦❧② ✇✐,❤ ❛ ❜✐♥❞✐♥❣ ❝♦♥2,$❛✐♥, ♦♥ ♣$✐❝❡ ❞✐2❝$✐♠✐♥❛,✐♦♥✱ q ∈[0, s
3)✱ ,❤❡ ✉♥✐5✉❡ ❡5✉✐❧✐❜$✐✉♠ ❤❛2
✶✳ ❖❧❞ ❝♦♥2✉♠❡$2 ✇✐,❤ xOLD ≤ sθ+6t+2s−3qθ12t
❛♥❞ ♥❡✇ ❝♦♥2✉♠❡$2 ✇✐,❤ xNEW ≤ sθ+6t−s+3q(1−θ)12t
♣✉$❝❤❛2❡ ❢$♦♠ ✜$♠ A✱ ❛♥❞ ❛❧❧ ♦,❤❡$2 ❢$♦♠ ✜$♠ B
✷✳ ❋✐$♠ A 2❡,2 ♣$✐❝❡2 pAOLD = s(1−θ)3
+ qθ + t+ c✱ pANEW = s(1−θ)3− q(1− θ) + t+ c✳ ❋✐$♠
B✬2 ♣$✐❝❡2 ❛$❡ pBOLD = (3q−s)θ6
− s3+ t+ c ❛♥❞ pBNEW = −q 1−θ
2+ s(1−θ)
6+ t+ c
✸✳ ❊5✉✐❧✐❜$✐✉♠ ♣$♦✜,2 ❛$❡ ❣✐✈❡♥ ❜②
π∗ADUO =s2(1− θ)
18t+
s(1− θ)
3+
t
2− q(q − s)(1− θ)θ
4t
π∗BDUO =s2(1− θ)
18t− s(1− θ)
3+
t
2+
(s− q)2θ(1− θ)
8t
A$♦♦❢✳ ❆♣♣❧②✐♥❣ ✐♥❡;✉❛❧✐-② ❝♦♥.-*❛✐♥- ✭❡;✉❛-✐♦♥ ✷✳✷✳✺✮ -♦ -❤❡ ✐♥❝✉♠❜❡♥-✬. ♣*♦❜❧❡♠✱ -❤❡ ✐♥✲
❝✉♠❜❡♥-✬. ♣*♦❜❧❡♠ ✐♥ ❑✉❤♥✕❚✉❝❦❡* ❢♦*♠ ❜❡❝♦♠❡.✿
L = (1− θ)xOLD(pAOLD, p
BOLD)
(pAOLD − c
)✭✷✳✸✳✾✮
+ θxNEW (pANEW , pBNEW )(pANEW − c
)− λ(pAOLD − pANEW − q)
❙✉♣♣♦.❡ ✜*.- -❤❡ ❝♦♥.-*❛✐♥- ❞♦❡. ♥♦- ❜✐♥❞ ✭λ = 0✮✳ ❚❤❡♥✱ -❤❡ .♦❧✉-✐♦♥. ♦❢ -❤❡ ♣*♦❜❧❡♠
❛*❡ ❣✐✈❡♥ ❜② ❡;✉❛-✐♦♥. ✭✷✳✸✳✸✲✷✳✸✳✹✮✳ ❈♦♠❜✐♥✐♥❣ ✇✐-❤ -❤❡ ❜❡.- *❡.♣♦♥.❡. ♦❢ -❤❡ ♥❡-*❛♥-
✭✷✳✸✳✻✲✷✳✸✳✼✮ ✇❡ -❤✉. ❤❛✈❡ -❤❡ .❛♠❡ ❡;✉✐❧✐❜*✐✉♠ ❛. ✐♥ ♣*♦♣♦.✐-✐♦♥ ✷✳✸✳✷✳ ❇② ❡①❛♠✐♥✐♥❣ -❤❡
✐♥❝✉♠❜❡♥-✬. ♣*✐❝❡ ❞✐✛❡*❡♥❝❡ p∗AOLD − p∗ANEW = s3✱ -❤✐. ❡;✉✐❧✐❜*✐✉♠ ✐. ❢❡❛.✐❜❧❡ ❢♦* q ≥ s
3✳
❲❤❡♥ -❤❡ ❝♦♠♣❡-✐-✐♦♥ ❛✉-❤♦*✐-②✬. ❝♦♥.-*❛✐♥- ✐. ❜✐♥❞✐♥❣ ✭λ 6= 0✮✱ -❤❡ ✜*.-✕♦*❞❡* ❝♦♥❞✐-✐♦♥
②✐❡❧❞.✿
pAOLD(~pB) =
((1−θ)pBOLD+θpBNEW )+(2q−s)θ+t+s+c
2✭✷✳✸✳✶✵✮
pANEW ( ~pB) =((1−θ)pBOLD+θpBNEW )+(2q−s)θ+t+s+c
2− q ✭✷✳✸✳✶✶✮
❋*♦♠ ♣*♦♣♦.✐-✐♦♥ ✷✳✸✳✶✱ ✐- ✐. ✐♠♠❡❞✐❛-❡ -❤❛- -❤❡ ❡♥-*❛♥- ✐. ❛❜❧❡ -♦ ❡♥❣❛❣❡ ✐♥ ♣*✐❝❡ ❞✐.❝*✐♠✐✲
♥❛-✐♦♥ ❛ ❢♦*-✐♦*✐ ✐❢ -❤❡ ✐♥❝✉♠❜❡♥- ✐. ❝♦♥.-*❛✐♥❡❞ ✭❛. -❤❡ ♣*✐❝❡ ❞✐✛❡*❡♥❝❡ .❤*✐♥❦.✮✳
❈♦♠❜✐♥✐♥❣ ❡;✉❛-✐♦♥. ✭✷✳✸✳✶✵✲✷✳✸✳✶✶✮ ❛♥❞ ✭✷✳✸✳✻✲✷✳✸✳✼✮ ❛❣❛✐♥ ②✐❡❧❞. ❛ ❢✉❧❧✕*❛♥❦ ✹①✹ .②.-❡♠✱
❛♥❞ ✇❤✐❝❤ ❝❛♥ ❜❡ .♦❧✈❡❞ -♦ ②✐❡❧❞ -❤❡ ✉♥✐;✉❡ ❡;✉✐❧✐❜*✐✉♠ ♣*✐❝❡. ❝❧❛✐♠❡❞ ✐♥ ♣❛*- ✭✐✐✮ ♦❢ -❤❡
♣*♦♣♦.✐-✐♦♥✳ S❛*-. ✭✐✮ ❛♥❞ ✭✐✐✐✮ ❛*❡ ❛♥❛❧♦❣♦✉. -♦ ♣*♦♣♦.✐-✐♦♥ ✷✳✸✳✷✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✺✵ ❍✐"#♦%②✕❇❛"❡❞ ,%✐❝❡ ❉✐"❝%✐♠✐♥❛#✐♦♥ ❛♥❞ ❲❡❧❢❛%❡ ✐♥ ❛ ●%♦✇✐♥❣ ▼❛%❦❡#
❲❤❡♥ ❛ ❜✐♥❞✐♥❣ ❝♦♥-./❛✐♥. ♦♥ ♣/✐❝❡ ❞✐-❝/✐♠✐♥❛.✐♦♥ ✐- ✐♥./♦❞✉❝❡❞✱ ❤♦❧❞✐♥❣ .❤❡ ❡♥./❛♥.✬-
♣/✐❝❡- ❝♦♥-.❛♥.✱ .❤❡ ✐♥❝✉♠❜❡♥. ❧♦✇❡/- .❤❡ ♣/✐❝❡- ❢♦/ ♦❧❞ ❝♦♥-✉♠❡/- ❛♥❞ ✐♥❝/❡❛-❡- .❤❡♠ ❢♦/ ♥❡✇
❝♦♥-✉♠❡/-✳ ❖❜-❡/✈❡ .❤❛. .❤✐- ❝♦♥-./❛✐♥. ♦♥ .❤❡ ✐♥❝✉♠❜❡♥.✬- ♣/✐❝❡ ❞✐-❝/✐♠✐♥❛.✐♦♥ ❛❝.✉❛❧❧②
❡♥❤❛♥❝❡- .❤❡ ❡♥./❛♥.✬- ♣/✐❝❡ ❞✐-❝/✐♠✐♥❛.✐♦♥ ✕ .❤❡ ♣/✐❝❡ ❞✐✛❡/❡♥❝❡ B ❝❤❛/❣❡- ♥❡✇ ❛♥❞ ♦❧❞
❝♦♥-✉♠❡/- ❛❝.✉❛❧❧② ✐♥❝/❡❛-❡-✳
❈♦❧❧❡❝.✐♥❣ -②-.❡♠❛.✐❝❛❧❧② .❤❡ ❝♦♠♣❛/❛.✐✈❡ -.❛.✐❝- /❡-✉❧.-✱ ❛♥❞ ♥♦.✐♥❣ .❤❛. ❛ ❢❛❧❧ ✐♥ q
♠❡❛♥- -./✐❝.❡/ /❡❣✉❧❛.✐♦♥✱ ✇❡ ❤❛✈❡✿
!♦♣♦$✐&✐♦♥ ✷✳✸✳✹ ✭❊✛❡❝.- ♦❢ ▲✐♠✐.✐♥❣ C/✐❝❡ ❉✐-❝/✐♠✐♥❛.✐♦♥✮✳ ❆$ ♣&✐❝❡ ❞✐$❝&✐♠✐♥❛-✐♦♥ ♦♥
-❤❡ ✐♥❝✉♠❜❡♥- ✐$ ❝♦♥$-&❛✐♥❡❞ ✭dq < 0✮✱
✶✳ -❤❡ ✐♥❝✉♠❜❡♥-✬$ ♠❛&❦❡- $❤❛&❡ ❛♠♦♥❣ ♦❧❞ ❝♦♥$✉♠❡&$ &✐$❡$ ✭dxOLD/dq < 0✮ ❛♥❞ ❢❛❧❧$
❛♠♦♥❣ ♥❡✇ ❝♦♥$✉♠❡&$ ✭dxNEW/dq > 0✮❀ ❛❝&♦$$ $❡❣♠❡♥-$✱ ♠❛&❦❡- $❤❛&❡$ ❛&❡ ✉♥❝❤❛♥❣❡❞
✭d(θxNEW + (1− θ)xOLD/dq = 0✮
✷✳ ❜♦-❤ ✐♥❝✉♠❜❡♥- ❛♥❞ ❡♥-&❛♥- &❡❞✉❝❡ ♣&✐❝❡$ ❢♦& ♦❧❞ ❝♦♥$✉♠❡&$ dpiOLD/dq > 0 ❛♥❞ &❛✐$❡
♣&✐❝❡$ ❢♦& ♥❡✇ ❝♦♥$✉♠❡&$ ✭dpjNEW < 0✮
✸✳ ❡♥-&❛♥- ♣&♦✜- &✐$❡$✱ dπ∗B/dq < 0 ✇❤✐❧❡ -❤❡ ✐♥❝✉♠❜❡♥-✬$ ♣&♦✜- ❢❛❧❧$ dπ∗A/dq > 0
?&♦♦❢✳ ❯-✐♥❣ ♣/♦♣♦-✐.✐♦♥ ✷✳✸✳✸ ❞✐/❡❝.❧②✱
✶✳ ❋♦/ ♦❧❞ ❝♦♥-✉♠❡/-✱ dxOLD/dq = − θ4t< 0❀ ✇❤✐❧❡ ❢♦/ ♥❡✇ ❝♦♥-✉♠❡/- dxNEW/dq = 1−θ
4t<
0✳
❚❛❦✐♥❣ d ((1− θ)xOLD + θxNEW ) /dq = − (1−θ)θ4t
+ (1−θ)θ4t
= 0✱ ❛- ❝❧❛✐♠❡❞✳
✷✳ ❋♦/ .❤❡ ✐♥❝✉♠❜❡♥.✱ dp∗AOLD/dq = θ > 0✱ dp∗ANEW/dq = −(1 − θ) < 0❀ ✇❤✐❧❡ ❢♦/ .❤❡
❡♥./❛♥.✱ dp∗BOLD/dq =θ2> 0✱ dp∗BNEW/dq = − (1−θ)
2< 0✱
✸✳ ❋♦/ .❤❡ ✐♥❝✉♠❜❡♥. ❛♥❞ ❡♥./❛♥. /❡-♣❡❝.✐✈❡❧②✿
dπ∗ADUO
dq=
(s− 2q)(1− θ)θ
4t> 0 ✭✷✳✸✳✶✷✮
dπ∗BDUO
dq= −(s− q)(1− θ)θ
4t< 0 ✭✷✳✸✳✶✸✮
◆♦.✐♥❣ .❤❛. .❤❡ ♣/♦♣♦-✐.✐♦♥ ✐♥❞✐❝❛.❡- q ∈ [0, s/3)✱ .❤❡ ❡①♣/❡--✐♦♥- ❛/❡ ❞❡✜♥✐.❡❧② -✐❣♥❡❞✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✷ ✺✶
❘❡❣✉❧❛(✐♦♥ ♦❢ ♣.✐❝❡ ❞✐1❝.✐♠✐♥❛(✐♦♥ ❛✛❡❝(1 (❤❡ ♦❧❞ ❛♥❞ ♥❡✇ ❝♦♥1✉♠❡. 1❡❣♠❡♥(1 ❞✐✛❡.❡♥(❧②✳
❋♦. ♦❧❞ ❝♦♥1✉♠❡.1✱ (❤❡ ✐♥❝✉♠❜❡♥(✬1 ♣.✐❝❡ ✐1 ❞❡♣.❡11❡❞❀ 1✐♥❝❡ (❤❡ ❡♥(.❛♥(✬1 ♣.✐❝❡ ❞♦❡1 ♥♦(
❢❛❧❧ ♦♥❡✕❢♦.✕♦♥❡✱ (❤✐1 .❡1✉❧(1 ✐♥ ❛ ❢❛❧❧✐♥❣ ♣.✐❝❡ ❞✐✛❡.❡♥❝❡ pAOLD − pBOLD✱ ❛♥❞ (❤✉1 1❤✐❢(1 (❤❡
♠❛.❣✐♥❛❧ ❝♦♥1✉♠❡. (♦✇❛.❞1 (❤❡ ✐♥❝✉♠❜❡♥(✳ ❚❤✉1✱ .❡❣✉❧❛(✐♦♥ 1(.❡♥❣(❤❡♥1 (❤❡ ♠❛.❦❡( 1❤❛.❡ ♦❢
(❤❡ ✐♥❝✉♠❜❡♥( ✐♥ (❤❡ ♦❧❞ 1❡❣♠❡♥(✳ ■♥ ❝♦♥(.❛1(✱ (❤❡ ✐♥❝✉♠❜❡♥(✬1 ♣.✐❝❡ ❢♦. ♥❡✇ ❝♦♥1✉♠❡.1 .✐1❡1❀
❛❣❛✐♥✱ (❤❡ ❡♥(.❛♥( ♣❛.(✐❛❧❧② ❢♦❧❧♦✇1 1✉✐(✱ ❤❡♥❝❡ ❣❛✐♥✐♥❣ ♠❛.❦❡( 1❤❛.❡ ❛♠♦♥❣ ♥❡✇ ❝♦♥1✉♠❡.1✳
❘❡❣✉❧❛(✐♦♥ ❞♦❡1 ♥♦( ❛✛❡❝( (❤❡ ♦✈❡.❛❧❧ ♠❛.❦❡( 1❤❛.❡1 ♦❢ (❤❡ (✇♦ ✜.♠1✳
❆1 ♦♥❡ ♠❛② ❡①♣❡❝(✱ (❤❡ .❡❣✉❧❛(✐♦♥ ❤❛.♠1 ♣.♦✜(❛❜✐❧✐(② ♦❢ (❤❡ ✐♥❝✉♠❜❡♥(✳ ❚❤❡ ❡♥(.❛♥(
❣❛✐♥1✳ ❚❤✐1 ✐1 ❛1 ✐♥ ❇♦✉❝❦❛❡.( ❡( ❛❧✳ ✭✷✵✶✸✮ ❛♥❞ ❈❤❡♥ ✭✷✵✵✽✮✱ ❜✉( ♥♦( ❛1 ✐♥ ●❡❤.✐❣ ❡( ❛❧✳
✭✷✵✶✶✮ ✇❤❡.❡ (❤❡ ❡♥(.❛♥( ✐1 ❝♦♠♣❡❧❧❡❞ (♦ ✉♥✐❢♦.♠ ♣.✐❝✐♥❣✳
✷✳✸✳✸ ❊♥%&❛♥% ♦& ■♥❝✉♠❜❡♥% ▼♦♥♦♣♦❧②
◆♦✇✱ ■ 1♦❧✈❡ ❢♦. (❤❡ ♠❛.❦❡( ♦✉(❝♦♠❡1 ✇❤❡♥ ❡✐(❤❡. ✐♥❝✉♠❜❡♥( ♦. ❡♥(.❛♥( ✐1 ✐♥ ❛ ♠♦♥♦♣♦❧②
♣♦1✐(✐♦♥✿
■♥❝✉♠❜❡♥' ▼♦♥♦♣♦❧②✳ ❈♦♥1✐❞❡. ✜.1( (❤❡ ❝❛1❡ (❤❛( ♦♥❧② (❤❡ ✐♥❝✉♠❜❡♥( ✐1 ❛❝(✐✈❡ ✐♥ (❤❡ ♠❛.❦❡(✳
■♥ (❤✐1 ❝❛1❡✱ (❤❡ ♠❛.❣✐♥❛❧ ❝♦♥1✉♠❡. ✐1 ✐♥❞✐✛❡.❡♥( ❜❡(✇❡❡♥ ♣✉.❝❤❛1✐♥❣ ❢.♦♠ ✜.♠ A ❛♥❞
❛❜1(❛✐♥✐♥❣ ❢.♦♠ (❤❡ ♠❛.❦❡(✳ ❙♦❧✈✐♥❣ ❢♦. (❤❡ ♠❛.❣✐♥❛❧ (②♣❡ ✉1✐♥❣ ❡Q✉❛(✐♦♥1 ✷✳✷✳✷ ❛♥❞ ✷✳✷✳✶
.❡1♣❡❝(✐✈❡❧②✱
xOLD =β − pAOLD
txNEW =
β − pANEW
t✭✷✳✸✳✶✹✮
❚✇♦ ♣♦✐♥(1 ❛.❡ ♥♦(❡✇♦.(❤② ❛❜♦✉( (❤❡1❡ ❡①♣.❡11✐♦♥1✳ ❋✐.1(✱ ✐( ✐1 ❝❧❡❛. (❤❛( (❤❡.❡ ✐1 ♥♦
❝♦♠♣❡(✐(♦. (♦ 1✇✐(❝❤ (♦ ✉♥❞❡. ✐♥❝✉♠❜❡♥( ♠♦♥♦♣♦❧②❀ (❤✉1 ✐( ✐1 ❛❧1♦ ✐♥(✉✐(✐✈❡ (❤❛( ✉♥✐❢♦.♠
♣.✐❝✐♥❣ ✇✐❧❧ ❛.✐1❡ ✐♥ (❤✐1 1❡((✐♥❣✳ ❙❡❝♦♥❞✱ (❤❡ ❢✉❧❧ ♠❛.❦❡( ❝♦✈❡.❛❣❡ ❛11✉♠♣(✐♦♥ (✐❡1 ❞♦✇♥ (❤❡
♣.✐❝❡1 ❞✐.❡❝(❧② ✐♥ (❤❡ ♠♦♥♦♣♦❧② ❝❛1❡❀ ✐( .❡♠❛✐♥1 (♦ ✜♥❞ ❜♦✉♥❞❛.✐❡1 ♦♥ (❤❡ ♣❛.❛♠❡(❡.1 ❢♦.
✇❤✐❝❤ ❢✉❧❧ ♠❛.❦❡( ❝♦✈❡.❛❣❡ ❝❛♥ ❛.✐1❡ ✐♥ ❡Q✉✐❧✐❜.✐✉♠✳
!♦♣♦$✐&✐♦♥ ✷✳✸✳✺✳ ❯♥❞❡/ ✐♥❝✉♠❜❡♥' ♠♦♥♦♣♦❧②✱
✶✳ ❆❧❧ ♦❧❞ ❛♥❞ ♥❡✇ ❝♦♥7✉♠❡/7 ♣✉/❝❤❛7❡ ❢/♦♠ ✜/♠ ❆✱ xOLD = xNEW = 1
✷✳ ❚❤❡ ✐♥❝✉♠❜❡♥' ❝❤❛/❣❡7 ♣/✐❝❡7 pAOLD = pANEW = β − t
✸✳ ■♥❝✉♠❜❡♥' ♣/♦✜' ❡?✉❛❧7 π∗AMON = β − t− c
@/♦♦❢✳
✶✳ ❚❤✐1 ✐1 ❛♥ ✐♠♠❡❞✐❛(❡ ❝♦♥1❡Q✉❡♥❝❡ ♦❢ ❛11✉♠♣(✐♦♥ ✹✱ ✐✳❡✳ (❤❛( (❤❡ ♠❛.❦❡( ✐1 ❢✉❧❧② ❝♦✈❡.❡❞✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✺✷ ❍✐"#♦%②✕❇❛"❡❞ ,%✐❝❡ ❉✐"❝%✐♠✐♥❛#✐♦♥ ❛♥❞ ❲❡❧❢❛%❡ ✐♥ ❛ ●%♦✇✐♥❣ ▼❛%❦❡#
✷✳ ❚♦ ✜♥❞ ♠♦♥♦♣♦❧② ♣,✐❝❡0✱ ♥♦2❡ 2❤❡ ✐♥❝✉♠❜❡♥2✬0 ♣,♦❜❧❡♠ ✐0 ❣✐✈❡♥ ❜②
♠❛①
{pAOLD,pANEW }πA = (1− θ)xOLD(p
AOLD)
(pAOLD − c
)✭✷✳✸✳✶✺✮
+θxNEW (pANEW )(pANEW − c
)
❚❤❡ ✜,02✕♦,❞❡, ❝♦♥❞✐2✐♦♥ ❢♦, ❡✐2❤❡, ♣,✐❝❡ pAOLD ✐0 ❣✐✈❡♥ ❜②
dπA
dpAOLD
=
0 ✐❢ pAOLD ≥ β
1−θt
(β + c− 2pAi
)✐❢ β − t ≤ pAOLD ≤ β
−1 ✐❢ pAOLD < β − t
❚♦ 0❛2✐0❢② 2❤❡ ❢✉❧❧ ♠❛,❦❡2 ❝♦✈❡,❛❣❡ ❛00✉♠♣2✐♦♥✱ ✇❡ ❝❛♥ ✐♠♠❡❞✐❛2❡❧② ♦❜0❡,✈❡ ❢,♦♠
❡C✉❛2✐♦♥ ✷✳✸✳✶✹ 2❤❛2 pAOLD = pANEW = β − t✳ ❋♦, 2❤✐0 2♦ ❜❡ ❛ 0♦❧✉2✐♦♥ ♦❢ 2❤❡ ✜,♠✬0
♣,✐❝✐♥❣ ♣,♦❜❧❡♠✱ ✇❡ ♠✉02 ❤❛✈❡
β ≥ 2t+ c
✸✳ ❋♦❧❧♦✇0 ❞✐,❡❝2❧② ❜② 0✉❜02✐2✉2✐♥❣ 2❤❡ ❡C✉✐❧✐❜,✐✉♠ ♣,✐❝❡0 ❛♥❞ ♠❛,❣✐♥❛❧ ❝♦♥0✉♠❡,0 ✐♥2♦
2❤❡ ♣❛②♦✛ ❢✉♥❝2✐♦♥✳
❊♥"#❛♥" ▼♦♥♦♣♦❧②✳ ❯♥❞❡, ❡♥2,❛♥2 ♠♦♥♦♣♦❧②✱ ❛❧❧ ♦❧❞ ❝♦♥0✉♠❡,0 ❢❛❝❡ 0✇✐2❝❤✐♥❣ ❝♦02✳ ❚❤✐0
②✐❡❧❞0 ❛ ♠♦❞✐✜❡❞ ♠❛,❣✐♥❛❧ ❝♦♥0✉♠❡, ❝♦♥❞✐2✐♦♥ ✐♥ 2❤✐0 0❡❣♠❡♥2✳ ❋♦, ♥❡✇ ❝♦♥0✉♠❡,0✱ 2❤❡
❡①♣,❡00✐♦♥ ,❡♠❛✐♥0 ✉♥❝❤❛♥❣❡❞ ❢,♦♠ 2❤❡ ♣,❡✈✐♦✉0 0❡❝2✐♦♥✿
xOLD =β + t+ s− pBOLD
txNEW =
β + t− pBNEW
t✭✷✳✸✳✶✻✮
●✐✈❡♥ 2❤❡ 0②♠♠❡2,② ♦❢ 2❤❡ ♠♦❞❡❧✱ 2❤❡ ❛♣♣,♦♣,✐❛2❡ ❝♦♥❞✐2✐♦♥ 2♦ 0❛2✐0❢② 2❤❡ ❢✉❧❧ ❝♦✈❡,❛❣❡
❛00✉♠♣2✐♦♥ ✐0 2❤❛2 xj = 0 ✐♥ ❜♦2❤ 0❡❣♠❡♥20✳ ❙♦❧✈✐♥❣ 2❤❡ ♣,✐❝✐♥❣ ♣,♦❜❧❡♠ 2❤❡♥ ②✐❡❧❞0
!♦♣♦$✐&✐♦♥ ✷✳✸✳✻✳ ❯♥❞❡# ❡♥"#❛♥" ♠♦♥♦♣♦❧②✱
✶✳ ❆❧❧ ♦❧❞ ❛♥❞ ♥❡✇ ❝♦♥4✉♠❡#4 ♣✉#❝❤❛4❡ ❢#♦♠ ✜#♠ ❇✱ xOLD = xNEW = 0
✷✳ ❚❤❡ ✐♥❝✉♠❜❡♥" ❝❤❛#❣❡4 ♣#✐❝❡4 pBOLD = β − t − s ❛♥❞ pBNEW = β − t "♦ ♦❧❞ ❛♥❞ ♥❡✇
❝♦♥4✉♠❡#4 #❡4♣❡❝"✐✈❡❧②
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✷ ✺✸
✸✳ ❚❤❡ ❡♥&'❛♥&✬* ♣'♦✜& ❡.✉❛❧* π∗BMON = β − t− c− s(1− θ)
1'♦♦❢✳
✶✳ ❋♦❧❧♦✇( ❞✐+❡❝.❧② ❢+♦♠ ♠❛+❦❡. ❝♦✈❡+❛❣❡✱ ❛( ❜❡❢♦+❡
✷✳ ❚❤❡ ❡♥.+❛♥.✬( ♣+♦❜❧❡♠ ✐( ❣✐✈❡♥ ❜②
♠❛①
{pBOLD,pBNEW }πB = (1− θ)(1− xOLD)(p
BOLD)
(pBOLD − c
)✭✷✳✸✳✶✼✮
+θ(1− xNEW )(pBNEW )(pBNEW − c
)
❚❤❡ ✜+(.✕♦+❞❡+ ❝♦♥❞✐.✐♦♥( ❛+❡ ❣✐✈❡♥ ❜②
dπB
dpBOLD
=
0 ✐❢β − s ≤ pBOLD
1−θt
(β − s+ c− 2pBOLD
)✐❢ β − t− s ≤ pBOLD ≤ β − s
−1 ♦.❤❡+✇✐(❡
dπB
dpBNEW
=
0 ✐❢β ≤ pBOLD
θt
(β − c− 2pBNEW
)✐❢ β − t ≤ pBNEW ≤ β
−1 ♦.❤❡+✇✐(❡
❚♦ (❛.✐(❢② .❤❡ ❢✉❧❧ ♠❛+❦❡. ❝♦✈❡+❛❣❡ ❛((✉♠♣.✐♦♥✱ ✇❡ ❝❛♥ ✐♠♠❡❞✐❛.❡❧② ♦❜(❡+✈❡ ❢+♦♠
❡E✉❛.✐♦♥ ✷✳✸✳✶✹ .❤❛. pBOLD = β − t− s ❛♥❞ pBNEW = β − t✳ ❋♦+ .❤✐( .♦ ❜❡ ❛ (♦❧✉.✐♦♥ ♦❢
.❤❡ ✜+♠✬( ♣+✐❝✐♥❣ ♣+♦❜❧❡♠✱ ✇❡ ♠✉(. ❤❛✈❡
β ≥ 2t+ c+ s β ≥ 2t+ c
❢♦+ .❤❡ ❋❖❈ ♦❢ ♦❧❞ ❛♥❞ ♥❡✇ ❝♦♥(✉♠❡+( +❡(♣❡❝.✐✈❡❧②✳ ❙✐♥❝❡ .❤❡ ✜+(. ❝♦♥(.+❛✐♥. ✐( .✐❣❤.❡+✱
.❤❡ ❢✉❧❧ ❝♦✈❡+❛❣❡ ❛((✉♠♣.✐♦♥ ✐♠♣❧✐❡( β ≥ 2t+ c+ s✳
✸✳ ❇② (✉❜(.✐.✉.✐♦♥ ♦❢ ❡E✉✐❧✐❜+✐✉♠ ♣+✐❝❡( ✐♥.♦ .❤❡ ♣❛②♦✛ ❢✉♥❝.✐♦♥✳
✷✳✸✳✹ ❊♥&'② ❙&❛❣❡
❚❤❡ ♠♦❞❡❧ ❛❞♠✐.( ❢♦+ .❤❡ ❡E✉✐❧✐❜+✐✉♠ ♠❛+❦❡. (.+✉❝.✉+❡( ♦❢ ❞✉♦♣♦❧②✱ ♠♦♥♦♣♦❧② ❜② ❡♥.+❛♥.
✭❡①✐.✮ ♦+ ♠♦♥♦♣♦❧② ❜② .❤❡ ✐♥❝✉♠❜❡♥. ✭♥♦ ❡♥.+②✮✳ ❉❡♣❡♥❞✐♥❣ ♦♥ .❤❡ ♣❛+❛♠❡.❡+( ✕ ✜①❡❞ ❝♦(.
♦❢ ❡♥.+②✱ (✇✐.❝❤✐♥❣ ❝♦(.✱ +❡❣✉❧❛.✐♦♥ ♦❢ ♣+✐❝❡ ❞✐(❝+✐♠✐♥❛.✐♦♥ ✕ ❞✐✛❡+❡♥. ♦✉.❝♦♠❡( ❛+❡ ♣♦((✐❜❧❡✳
❲❡ ❞❡+✐✈❡ .❤❡ ♠♦♥♦♣♦❧② ❡E✉✐❧✐❜+✐✉♠✱ .❤❡♥ ✜+(. ❡(.❛❜❧✐(❤ ❛♥ ♦+❞❡+✐♥❣ ♦❢ .❤❡ ♣+♦✜.(✱ ❛♥❞
✜♥❛❧❧② ✜♥❞ ❢♦+ ✇❤✐❝❤ ♣❛+❛♠❡.❡+ ❝❛(❡( ❛ ♣❛+.✐❝✉❧❛+ ♠❛+❦❡. (.+✉❝.✉+❡ ✐( ❛♥ ❡E✉✐❧✐❜+✐✉♠✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✺✹ ❍✐"#♦%②✕❇❛"❡❞ ,%✐❝❡ ❉✐"❝%✐♠✐♥❛#✐♦♥ ❛♥❞ ❲❡❧❢❛%❡ ✐♥ ❛ ●%♦✇✐♥❣ ▼❛%❦❡#
❋✐❣✉&❡ ✷✳✷✿ ❈♦♥./❡❧❧❛/✐♦♥ ♦❢ ❊4✉✐❧✐❜&✐✉♠ ▼❛&❦❡/ ❙/&✉❝/✉&❡.
!♦♣♦$✐&✐♦♥ ✷✳✸✳✼✳ ●✐✈❡♥ %❤❡ ♣❛)❛♠❡%❡)+✱ %❤❡ ❡-✉✐❧✐❜)✐✉♠ ♠❛)❦❡% +%)✉❝%✉)❡ ✐+ ❣✐✈❡♥ ❜②
✶✳ FA < π∗ADUO✱FB < π∗BDUO✿ ✉♥✐-✉❡ ❡-✉✐❧✐❜)✐✉♠ ✇❤❡)❡ ❜♦%❤ ✜)♠+ ❡♥%❡)
✷✳ FA < π∗ADUO✱π∗BDUO < FB < π∗BMON ✿ ✐♥❝✉♠❜❡♥% ♠♦♥♦♣♦❧② ✐+ %❤❡ ✉♥✐-✉❡ ❡-✉✐❧✐❜)✐✉♠
✸✳ π∗ADUO < FA < π∗AMON ✱ FB < π∗BDUO✿ ❡♥%)❛♥% ♠♦♥♦♣♦❧② ✐+ %❤❡ ✉♥✐-✉❡ ❡-✉✐❧✐❜)✐✉♠
✹✳ π∗ADUO < FA < π∗AMON ✱ π∗BDUO < FB < π∗BMON ✿ ❡✐%❤❡) ❡♥%)❛♥% ♦) ✐♥❝✉♠❜❡♥% ♠♦♥♦♣♦❧② ❛)❡
❡-✉✐❧✐❜)✐❛✳
>)♦♦❢✳ ❚❤❡ ❡♥/&② ./❛❣❡ ✐. ❛ ✷①✷ ❣❛♠❡✳ ❋✐&./✱ ❝♦♥.✐❞❡& /❤❡ ❝❛.❡ /❤❛/ Fi < π∗iDUO✳ ■♥ /❤✐. ❝❛.❡✱
✐/ ✐. ❛ ❞♦♠✐♥❛♥/ ./&❛/❡❣② ❢♦& ✜&♠ i /♦ ❡♥/❡& /❤❡ ♠❛&❦❡/✳ ❙❡❝♦♥❞✱ ✐❢ π∗iDUO < Fi < π∗iMON ✱ ✜&♠
i✬. ❜❡./ &❡.♣♦♥.❡ ✐. /♦ ❡♥/❡& ✐❢ /❤❡ &✐✈❛❧ ❞♦❡. ♥♦/✱ ❛♥❞ ♦/❤❡&✇✐.❡ ❛❜./❛✐♥ ❢&♦♠ /❤❡ ♠❛&❦❡/✳
❚❤❡ ❝❧❛✐♠❡❞ ♠❛&❦❡/ ./&✉❝/✉&❡. ✐♥ /❤❡ ♣&♦♣♦.✐/✐♦♥ /❤❡♥ ❢♦❧❧♦✇ ❞✐&❡❝/❧② ❢&♦♠ ❝♦♠❜✐♥✐♥❣
/❤❡ ❝❛.❡. ❥✉./ ❞✐.❝✉..❡❞✳
❋✐❣✉&❡ ✷✳✷ .✉♠♠❛&✐.❡. ❣&❛♣❤✐❝❛❧❧② /❤❡ ♣♦..✐❜❧❡ ♠❛&❦❡/ ./&✉❝/✉&❡.✳
✷✳✹ ❲❡❧❢❛(❡ ❛♥❞ +(✐❝❡ ❉✐/❝(✐♠✐♥❛1✐♦♥
❈♦♥.✉♠❡& ❙✉&♣❧✉.✿
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✷ ✺✺
CS = β + θ
xNEWˆ
0
−tx− pANEWdx+
1ˆ
xNEW
−t(1− x)− pBNEWdx
✭✷✳✹✳✶✮
+ (1− θ)
xOLDˆ
0
−tx− pAOLDdx+
1ˆ
xOLD
−t(1− x)− pBOLD − sdx
!"♦✜%& ✇❡"❡ ❛❧"❡❛❞② ❞❡"✐✈❡❞ ❜❡❢♦"❡✳ ❙♦❝✐❛❧ ✇❡❧❢❛"❡ ✐& ❣✐✈❡♥ ❜②
W = β + θ
xNEWˆ
0
−txdx+
1ˆ
xNEW
−t(1− x)dx
✭✷✳✹✳✷✮
+ (1− θ)
xOLDˆ
0
−txdx+
1ˆ
xOLD
−t(1− x)− sdx
❚❤❡ ❡①♣"❡&&✐♦♥ ♠❛❦❡& ❝❧❡❛" %❤❡ ♥❛%✉"❡ ♦❢ %❤❡ ✇❡❧❢❛"❡ ❞✐&❝✉&&✐♦♥✳ ●✐✈❡♥ %❤❡ ❢✉❧❧ ❝♦✈❡"❛❣❡
❛&&✉♠♣%✐♦♥✱ %❤❡ &♦✉"❝❡& ♦❢ ✐♥❡✣❝✐❡♥❝② ✐♥ %❤❡ ♠♦❞❡❧ ❛"❡ ✭❛✮ ♠✐&❛❧❧♦❝❛%✐♦♥ ♦❢ ❝♦♥&✉♠❡"& ❛✇❛②
❢"♦♠ %❤❡ ♣"❡❢❡""❡❞ ❜"❛♥❞ ❛♥❞ ✭❜✮ &✇✐%❝❤✐♥❣ ❝♦&%&✳
✷✳✹✳✶ $%✐❝❡ ❉✐*❝%✐♠✐♥❛.✐♦♥ ✐♥ ❖❧✐❣♦♣♦❧②
❲❡ ♥♦✇ ❞❡"✐✈❡ %❤❡ ✇❡❧❢❛"❡✕♠❛①✐♠✐&✐♥❣ ♣♦❧✐❝② ♦♥ ♣"✐❝❡ ❞✐&❝"✐♠✐♥❛%✐♦♥ ✭✐✳❡✳ q✮✱ ❣✐✈❡♥ %❤❛% ❛
❞✉♦♣♦❧② ✐& ✐♥ ♣❧❛❝❡✳ ■% %✉"♥& ♦✉% %❤✐& ♣♦❧✐❝② ✐& %♦ ❜❛♥ ♣"✐❝❡ ❞✐&❝"✐♠✐♥❛%✐♦♥✿
!♦♣♦$✐&✐♦♥ ✷✳✹✳✶✳ ●✐✈❡♥ ❞✉♦♣♦❧②✱ ,❤❡ ✇❡❧❢❛1❡✕♠❛①✐♠✐5✐♥❣ ♣♦❧✐❝② ❝❛❧❧5 ❢♦1 ❛ ❝♦♠♣❧❡,❡ ❜❛♥ ♦❢
❜❡❤❛✈✐♦✉1✕❜❛5❡❞ ♣1✐❝❡ ❞✐5❝1✐♠✐♥❛,✐♦♥ ❜② ,❤❡ ✐♥❝✉♠❜❡♥,✳ ❚❤✐5 ♣♦❧✐❝② ♠❛①✐♠✐5❡5 ❜♦,❤ ❝♦♥5✉♠❡1
5✉1♣❧✉5 ❛♥❞ ♣1♦❞✉❝❡1 5✉1♣❧✉5✳
;1♦♦❢✳ ❙✉❜&%✐%✉%✐♥❣ ✐♥%♦ ❡F✉❛%✐♦♥& ✭✷✳✹✳✶✕✷✳✹✳✷✮ %❤❡ ❡F✉✐❧✐❜"✐✉♠ ♠❛"❣✐♥❛❧ ❝♦♥&✉♠❡"& ❢♦✉♥❞
✐♥ ♣"♦♣♦&✐%✐♦♥ ✷✳✸✳✸✱ ✇❡ ✜♥❞ ❛❢%❡" %❛❦✐♥❣ ❞❡"✐✈❛%✐✈❡& ✇✐%❤ "❡&♣❡❝% %♦ q
dCS
dq= −(s− q)(1− θ)θ
8t✭✷✳✹✳✸✮
dPS
dq= −q(1− θ)θ
4t✭✷✳✹✳✹✮
dW
dq= −(s+ q)(1− θ)θ
8t✭✷✳✹✳✺✮
❙✐♥❝❡ q ∈ [0, s/3]✱ %❤❡ ✜"&% ❡①♣"❡&&✐♦♥ ✐& ✉♥❛♠❜✐❣✉♦✉&❧② ♥❡❣❛%✐✈❡❀ &✐♠✐❧❛"❧②✱ %❤❡ ❞❡"✐✈❛%✐✈❡ ♦❢
✇❡❧❢❛"❡ ✇✐%❤ "❡&♣❡❝% %♦ q ✐& ✉♥❛♠❜✐❣✉♦✉&❧② ♥❡❣❛%✐✈❡✳ ❚❤✉& q = 0 ♠❛①✐♠✐&❡& ❜♦%❤ &♦❝✐❛❧ ❛♥❞
♣"♦❞✉❝❡" &✉"♣❧✉& ❛& ❝❧❛✐♠❡❞✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✺✻ ❍✐"#♦%②✕❇❛"❡❞ ,%✐❝❡ ❉✐"❝%✐♠✐♥❛#✐♦♥ ❛♥❞ ❲❡❧❢❛%❡ ✐♥ ❛ ●%♦✇✐♥❣ ▼❛%❦❡#
❋✐❣✉&❡ ✷✳✸✿ ❲❡❧❢❛&❡ ❊✛❡❝34 ♦❢ 6&✐❝❡ ❉✐4❝&✐♠✐♥❛3✐♦♥
6&✐❝❡ ❞✐4❝&✐♠✐♥❛3✐♦♥ ✐4 3❤✉4 ✈❡&② ❞❛♠❛❣✐♥❣ 3♦ ✇❡❧❢❛&❡ ✐♥ 3❤❡ ♣&❡4❡♥3 ♠♦❞❡❧✱ ❛♥❞ ❧❡❛❞4
3♦ ❛ ✏❞♦✉❜❧❡ ❧♦44✑ ❢♦& ❜♦3❤ ❝♦♥4✉♠❡&4 ❛♥❞ ♣&♦❞✉❝❡&4✳ 6&♦❞✉❝❡& 4✉&♣❧✉4 ❢❛❧❧4 ❜❡❝❛✉4❡ 3❤❡
✐♥❝✉♠❜❡♥3 ❧♦4❡4 ♠♦&❡ 3❤❛♥ 3❤❡ ❡♥3&❛♥3 ❣❛✐♥4✱ ❛4 ❞✐4❝✉44❡❞ ❛❜♦✈❡ ❛♥❞ ✐♥ ❧✐♥❡ ✇✐3❤ ♦3❤❡&
♠♦❞❡❧4✳
❋✐❣✉&❡ ✷✳✸ ✐❧❧✉43&❛3❡4 3❤❡ ❡✛❡❝34 ♦❢ ♣&✐❝❡ ❞✐4❝&✐♠✐♥❛3✐♦♥ ♦♥ 3❤❡ 43&✉❝3✉&❡ ♦❢ 3❤❡ ❡D✉✐❧✐❜&✐✉♠✳
❚❤❡ ✜&43✕❜❡43 ❛❧❧♦❝❛3✐♦♥ ❞✐✈✐❞❡4 ❝♦♥4✉♠❡&4 ❡✈❡♥❧② ❜❡3✇❡❡♥3 3❤❡ 3✇♦ ✜&♠4 ✐♥ 3❤❡ ♥❡✇ 4❡❣♠❡♥3
✭xFBNEW = 1
2✮✱ ❛4 ♦♥❡ ✇♦✉❧❞ ❡①♣❡❝3 ❣✐✈❡♥ 3❤❡ ✉♥✐❢♦&♠❧② ❞✐43&✐❜✉3❡❞ ❜&❛♥❞ ♣&❡❢❡&❡♥❝❡ ❛♥❞
❡D✉❛❧✐3② ♦❢ ♠❛&❣✐♥❛❧ ❝♦434✳ ❲❤❡♥ ♣&✐❝❡ ❞✐4❝&✐♠✐♥❛3✐♦♥ ✐4 ♥♦3 &❡❣✉❧❛3❡❞✱ 3❤✐4 ❛❧❧♦❝❛3✐♦♥ ✐4 ❛❧4♦
✐♠♣❧❡♠❡♥3❡❞ ❜② 3❤❡ ♠❛&❦❡3 3❤&♦✉❣❤ ❡D✉❛❧ ♣&✐❝❡4 ❢♦& ♦❧❞ ❝♦♥4✉♠❡&4 ♦✛❡&❡❞ ❜② ✜&♠4 A ❛♥❞ B
✭3❤❡ &❡❞ ❧✐♥❡ ✐♥❞✐❝❛3❡4 ♣&❡✕&❡❣✉❧❛3✐♦♥ ♣&✐❝❡4✮✳ ❆4 &❡❣✉❧❛3✐♦♥ ✐4 ✐♠♣♦4❡❞✱ 3❤❡ ✐♥❝✉♠❜❡♥3✬4 ♣&✐❝❡
❢♦& ♥❡✇ ❝♦♥4✉♠❡&4 &✐4❡4 ❢❛43❡& 3❤❛♥ 3❤❡ ❡♥3&❛♥3✬4 ♣&✐❝❡❀ 3❤❡ ♥❡✇ ♣&✐❝❡ 43&✉❝3✉&❡ ✐4 ✐♥❞✐❝❛3❡❞
✐♥ ❜❧✉❡✱ ❛♥❞ ❡♥3❛✐❧4 ❛ ❣❛✐♥ ✐♥ ♠❛&❦❡3 4❤❛&❡ ❢♦& 3❤❡ ❡♥3&❛♥3 ❛♠♦♥❣ ♥❡✇ ❝♦♥4✉♠❡&4✳
❆♠♦♥❣ ♦❧❞ ❝♦♥4✉♠❡&4✱ 3❤❡ ✜&43 ❜❡43 ❤❛4 ❛ ♠❛&❣✐♥❛❧ ❝♦♥4✉♠❡& xFBOLD = 1
2+ s
2t♦❢ ✜&♠ A✳
❇✉3 ❛4 ✐♥❞✐❝❛3❡❞ ✐♥ ♣&♦♣♦4✐3✐♦♥ ✷✳✸✳✷✱ ✉♥❞❡& ✉♥❢❡33❡&❡❞ ♣&✐❝❡ ❞✐4❝&✐♠✐♥❛3✐♦♥ 3❤❡ ♠❛&❦❡3 4❤❛&❡
♦❢ A ✐4✱ ✐♥ ❢❛❝3✱ ❜❡❧♦✇ 3❤✐4 ✈❛❧✉❡✳ ❚❤✉4✱ 3❤❡ ♠♦❞❡❧ ❡①❤✐❜✐34 ❡①❝❡44✐✈❡ 4✇✐3❝❤✐♥❣ ❞✉❡ 3♦ 3❤❡
✐♥❝✉♠❜❡♥3 ❤❛&✈❡43✐♥❣ &❡♥3 ❢&♦♠ 4✇✐3❝❤✐♥❣ ❝♦434 ✭♣&✐❝❡4 ♦✛❡&❡❞ ❜❡❢♦&❡ &❡❣✉❧❛3✐♦♥ ❛&❡ ❛❣❛✐♥
✐♥❞✐❝❛3❡❞ ✐♥ &❡❞✱ ✇✐3❤ A ❝❤❛&❣✐♥❣ ♠♦&❡ 3❤❛♥ B✮✳ ❆4 ♣&✐❝❡ ❞✐4❝&✐♠✐♥❛3✐♦♥ ✐4 &❡43&✐❝3❡❞✱ 3❤❡
✐♥❝✉♠❜❡♥3 ✐4 ❢♦&❝❡❞ 3♦ ❧♦✇❡& ♣&✐❝❡4 ❢♦& ♦❧❞ ❝♦♥4✉♠❡&4❀ 4✐♥❝❡ 3❤❡ ❡♥3&❛♥3✬4 ♣&✐❝❡ ❝✉3 ✐4 4♠❛❧❧❡&✱
3❤❡ ♠❛&❣✐♥❛❧ ❝♦♥4✉♠❡& 4❤✐❢34 3♦✇❛&❞4 A✱ ✇❤✐❝❤ 3❡♥❞4 3♦ ✐♠♣&♦✈❡ ❡✣❝✐❡♥❝②✳
❙♦❝✐❛❧ ✇❡❧❢❛&❡ &✐4❡4 ✇❤❡♥ ♣&✐❝❡ ❞✐4❝&✐♠✐♥❛3✐♦♥ ✐4 ❝✉&3❛✐❧❡❞✳ ❘❡❣✉❧❛3✐♦♥ ✐♠♣&♦✈❡4 ✇❡❧❢❛&❡
✐♥ 3❤❡ ♦❧❞ 4❡❣♠❡♥3 ❜② ♠♦✈✐♥❣ 3❤❡ ♠❛&❣✐♥❛❧ ❝♦♥4✉♠❡& ❝❧♦4❡& 3♦ 3❤❡ ✜&43✳ ❚❤✐4 ❣❛✐♥ ✐4 43&♦♥❣✱
❜❡❝❛✉4❡ 3❤❡ ❞✐43♦&3✐♦♥ ✕ ❞✉❡ 3♦ ✐♥❡✣❝✐❡♥3 4✇✐3❝❤✐♥❣ ✕ ✐4 43&♦♥❣ ❛❜4❡♥3 &❡❣✉❧❛3✐♦♥❀ 3❤❡ ❧♦44
♦❢ ✇❡❧❢❛&❡ ✐♥ 3❤❡ ♥❡✇ 4❡❣♠❡♥3 ✐4 4♠❛❧❧❡&✱ ❡43❛❜❧✐4❤✐♥❣ 3❤❡ ✇❡❧❢❛&❡ &❡4✉❧3✳ ❈♦♥4✉♠❡& 4✉&♣❧✉4
❢❛❧❧4 ✐♥ 3❤❡ ♥❡✇ 4❡❣♠❡♥3✱ ✇❤✐❝❤ ✐4 ❤✉&3 ❜② ❤✐❣❤❡& ♣&✐❝❡4✳ ❇✉3 ♦❧❞ ❝♦♥4✉♠❡&4 ❜❡♥❡✜3 ❜♦3❤
❢&♦♠ ❛ ♣&✐❝❡ ❢❛❧❧ ❛♥❞ 3❤❡ &❡❞✉❝3✐♦♥ ✐♥ 4✇✐3❝❤✐♥❣ ❡✛♦&3✳ ❆❣❛✐♥✱ 3❤❡ ❣❛✐♥ 3♦ ♦❧❞ ❝♦♥4✉♠❡&4 ✐4
4✉✣❝✐❡♥3❧② 43&♦♥❣ 3♦ ❞&✐✈❡ 3❤❡ ♦✈❡&❛❧❧ &❡4✉❧3✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✷ ✺✼
❯♥❞❡& '❤❡ ✇❡❧❢❛&❡✕♠❛①✐♠✐1✐♥❣ ♣♦❧✐❝② ✕ ✇❤✐❝❤✱ ❜② '❤❡ ♣&♦♣♦1✐'✐♦♥ ✐1 ❛ ❜❛♥ ♦♥ ♣&✐❝❡ ❞✐1✲
❝&✐♠✐♥❛'✐♦♥✱ '❤❡ ♠❛①✐♠✉♠ ✇❡❧❢❛&❡ '❤❛' ❝❛♥ ❜❡ ❛''❛✐♥❡❞ ✉♥❞❡& ❞✉♦♣♦❧② ✐1✿
W3 = β − c− t
4− 7(sθ)2 + 13s2θ
144t− s(1− θ)
2+
5s2
36t− Fb − Fa ✭✷✳✹✳✻✮
✷✳✹✳✷ ❊♥%&②✱ )&✐❝❡ ❉✐.❝&✐♠✐♥❛%✐♦♥ ❛♥❞ ❲❡❧❢❛&❡
❚❤✐1 1❡❝'✐♦♥ ❡1'❛❜❧✐1❤❡1 '❤❡ ❝❡♥'&❛❧ &❡1✉❧'1 ♦❢ '❤❡ ♣❛♣❡& &❡❧❛'✐♥❣ '♦ ✇❡❧❢❛&❡✱ ♣&✐❝❡ ❞✐1❝&✐♠✐♥❛✲
'✐♦♥ ❛♥❞ ❡♥'&②✴❡①✐'✳ ❚❤❡ ✜&1' ♣&♦♣♦1✐'✐♦♥ ❢♦❝✉1❡1 ♦♥ '❤❡ ❝❛1❡ ✇❤❡&❡ '❤❡ ❡♥'&② ♦❢ ✜&♠ B ✐1
♣♦'❡♥'✐❛❧❧② ❛✛❡❝'❡❞ ❜② ♣&✐❝❡ ❞✐1❝&✐♠✐♥❛'✐♦♥❀ ✐' 1❤♦✇1 '❤❛'✱ ✐❢ ♣&✐❝❡ ❞✐1❝&✐♠✐♥❛'✐♦♥ ✐1 ♠❛&❣✐♥❛❧
'♦ ❡♥'&②✱ '❤✐1 ♠✉1' ✐♠♣❧② '❤❛' ❇✬1 ✜①❡❞ ❝♦1' ✐1 1✉✣❝✐❡♥'❧② ❤✐❣❤ '♦ ♠❛❦❡ ❡♥'&② ✐♥❡✣❝✐❡♥'✳
❚❤✉1✱ '❤❡ ♥♦&♠❛'✐✈❡ &❡1✉❧'✱ ❜✉✐❧❞✐♥❣ ♦♥ '❤❡ ❛♥❛❧②1✐1 ♦❢ ♣&❡❝❡❡❞✐♥❣ 1❡❝'✐♦♥✱ 1'❛'❡1 '❤❛' ♣&✐❝❡
❞✐1❝&✐♠✐♥❛'✐♦♥ 1❤♦✉❧❞ ❜❡ ❜❛♥♥❡❞ ✐❢ ❛♥❞ ♦♥❧② ✐❢ ✐' ❞♦❡1 ♥♦' ❝❛✉1❡ ❡♥'&②✳ ■ '❤❡♥ ♠♦✈❡ '♦ '❤❡
❝❛1❡ ✇❤❡&❡ '❤❡ ✐♥❝✉♠❜❡♥' ♠❛② ❡①✐'❀ ❤❡&❡✱ '❤❡ ❛♥❛❧②1✐1 ✐1 1♦♠❡✇❤❛' ♠♦&❡ ✐♥'&✐❝❛'❡ ❜❡❝❛✉1❡ ✕
✐♥ ❝❛1❡ ♦❢ ❡①✐' ✕ ❛❧❧ ♦❧❞ ❝♦♥1✉♠❡&1 ❜❡❛& '❤❡ 1✇✐'❝❤✐♥❣ ❝♦1' '♦ ✜&♠ B✳
■♥❝✉♠❜❡♥' ♠♦♥♦♣♦❧②✳ ❆❧❧ ❝♦♥1✉♠❡&1 ❣❡' '❤❡ ❣♦♦❞✱ 1♦ ✉♥❞❡& ✐♥❝✉♠❜❡♥' ♠♦♥♦♣♦❧② ✇❡ ❤❛✈❡
'❤❡ ❢♦❧❧♦✇✐♥❣ ✇❡❧❢❛&❡ ❡①♣&❡11✐♦♥✿
W1 =
1ˆ
0
(β − tx)dx− c− FA ✭✷✳✹✳✼✮
= β − t
2− c− FA
◆♦✇✱ '❤❡ ❝&✉❝✐❛❧ &❡1✉❧'✿
!♦♣♦$✐&✐♦♥ ✷✳✹✳✷✳ ●✐✈❡♥ '❤❛' '❤❡ ✐♥❝✉♠❜❡♥' ❞♦❡2 ♥♦' ❡①✐'✱ ❜❛♥♥✐♥❣ ♣6✐❝❡ ❞✐2❝6✐♠✐♥❛'✐♦♥
❜② '❤❡ ✐♥❝✉♠❜❡♥' ♠❛①✐♠✐2❡2 2♦❝✐❛❧ ✇❡❧❢❛6❡ ✐❢ ❛♥❞ ♦♥❧② ✐❢ ❞♦❡2 ♥♦' ❝❛✉2❡ ❡♥'6②
96♦♦❢✳ ❚♦ ❡♥1✉&❡ '❤❛' '❤❡ ✐♥❝✉♠❜❡♥' &❡♠❛✐♥1 ✐♥ '❤❡ ♠❛&❦❡'✱ ✇❡ ♠✉1' ❤❛✈❡ FA ≤ π∗ADUO✳
❚❤❡♥✱ '✇♦ ❝❛1❡1 ❝❛♥ ❜❡ ❞✐1'✐♥❣✉✐1❤❡❞✿
✶✳ P&✐❝❡ ❞✐1❝&✐♠✐♥❛'✐♦♥ ♥♦' ♠❛&❣✐♥❛❧ '♦ ❡♥'&②✳
❇② ♣&♦♣♦1✐'✐♦♥ ✷✳✸✳✼✱ ✐❢ Fb ≤ π∗BDUO|q = s/3✱ ❢♦& ❛♥② ♣♦❧✐❝② q✱ '❤❡ ✉♥✐R✉❡ ❡R✉✐❧✐❜&✐✉♠
❤❛1 ❜♦'❤ ✜&♠1 ❛❝'✐✈❡ ✐♥ '❤❡ ♠❛&❦❡'✳ ❇② ❛♣♣❡❛❧ '♦ ♣&♦♣♦1✐'♦♥ ✷✳✹✳✶✱ ✉♥❞❡& ❞✉♦♣♦❧②✱ ✐'
✐1 ✇❡❧❢❛&❡ ♠❛①✐♠✐1✐♥❣ '♦ ❜❛♥ ♣&✐❝❡ ❞✐1❝&✐♠✐♥❛'✐♦♥ ♦❢ '❤❡ ✐♥❝✉♠❜❡♥' ✭q = 0✮✳
✷✳ P&✐❝❡ ❞✐1❝&✐♠✐♥❛'✐♦♥ ✐1 ♠❛&❣✐♥❛❧ '♦ ❡♥'&②
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✺✽ ❍✐"#♦%②✕❇❛"❡❞ ,%✐❝❡ ❉✐"❝%✐♠✐♥❛#✐♦♥ ❛♥❞ ❲❡❧❢❛%❡ ✐♥ ❛ ●%♦✇✐♥❣ ▼❛%❦❡#
❲❤❡♥ π∗BDUO|q = s/3 ≤ Fb ≤ π∗BDUO|q = 0✱ '❤❡(❡ ✐* ❛♥ ❡,✉✐❧✐❜(✐✉♠ ✇✐'❤ ✐♥❝✉♠❜❡♥'
♠♦♥♦♣♦❧② ✐❢ ♣(✐❝❡ ❞✐*❝(✐♠✐♥❛'✐♦♥ ✐* ✉♥(❡*'(❛✐♥❡❞✱ ❛♥❞ ❛♥ ❡,✉✐❧✐❜(✐✉♠ ✇✐'❤ ❞✉♦♣♦❧② ✐❢
♣(✐❝❡ ❞✐*❝(✐♠✐♥❛'✐♦♥ ✐* (❡*'(✐❝'❡❞✳ ❲✐'❤ ❡♥'(②✱ ✇❡ ❤❛✈❡ '❤❡ ❣❛✐♥ ✐♥ ♣(♦❞✉❝' ✈❛(✐❡'② ✭❧♦✇❡(
'(❛♥*♣♦('❛'✐♦♥ ❝♦*'✮✱ ❜✉' ♥❡❡❞ '♦ *✐♥❦ '❤❡ ✜①❡❞ ❝♦*' ♦❢ ✜(♠ B ❛♥❞ ❝(❡❛'❡ *✇✐'❝❤✐♥❣
❝♦*'*✳
❈♦♠♣✉'✐♥❣ '❤❡ ✇❡❧❢❛(❡ ❣❛✐♥ ♦❢ ❞✉♦♣♦❧②✿
W3 −W1 =t
4− 7(sθ)2 + 13s2θ
144t− s(1− θ)
2+
5s2
36t− Fb ✭✷✳✹✳✽✮
≤ t
4− Fb ✭✷✳✹✳✾✮
≤ t
4− (
t
2+
s2(1− θ)
18t− s(1− θ)
3) < 0 ✭✷✳✹✳✶✵✮
✇❤❡(❡ '❤❡ ✜(*' ✐♥❡,✉❛❧✐'② ✐* '❤❡ ✉♣♣❡( ❜♦✉♥❞ ♦♥ ✇❡❧❢❛(❡ ❣❛✐♥*✱ ✐❢ *✇✐'❝❤✐♥❣ ❝♦*'* ❛(❡
❞✐*(❡❣❛(❞❡❞✳ ❚❤❡ *❡❝♦♥❞ ✐♥❡,✉❛❧✐'② *✉❜*'✐'✉'❡* '❤❡ ❧♦✇❡( ❜♦✉♥❞ ♦♥ ✜①❡❞ ❝♦*' ♦❢ '❤❡
❡♥'(❛♥'✳ ❈♦♠❜✐♥✐♥❣✱ ✇❡ ♦❜'❛✐♥ '❤❛' ✇❡❧❢❛(❡ ✐* ❤✐❣❤❡( ✉♥❞❡( ✐♥❝✉♠❜❡♥'✬* ♠♦♥♦♣♦❧②
'❤❛♥ ❞✉♦♣♦❧② ❢♦( '❤❡ ❝❧❛✐♠❡❞ (❛♥❣❡ ♦❢ ❡♥'(❛♥'✬* ✜①❡❞ ❝♦*' ✉*✐♥❣ ❝♦♥❞✐'✐♦♥ ❈✶✳
❲❤❡♥ ♣(✐❝❡ ❞✐*❝(✐♠✐♥❛'✐♦♥ ✐* ♥♦' ♠❛(❣✐♥❛❧ '♦ ❡♥'(②✱ '❤❡ ✇❡❧❢❛(❡ (❡*✉❧'* ♦❜'❛✐♥❡❞ ♣(❡✈✐♦✉*❧②
❛♣♣❧②✿ ❡①❝❡**✐✈❡ *✇✐'❝❤✐♥❣ ❛♠♦♥❣ ♦❧❞ ❝♦♥*✉♠❡(* ✐* ♠♦(❡ ❝♦*'❧② ❢(♦♠ ❛ ✇❡❧❢❛(❡ ♣❡(*♣❡❝'✐✈❡
'❤❛♥ '❤❡ ❞✐*'♦('✐♦♥ ♦❢ ♠❛(❦❡' *❤❛(❡* ❛♠♦♥❣ ♥❡✇ ❝♦♥*✉♠❡(*✳ ▼♦(❡♦✈❡(✱ ❜♦'❤ ❝♦♥*✉♠❡(* ❛♥❞
♣(♦❞✉❝❡(* ❜❡♥❡✜' ❢(♦♠ ❛ ❜❛♥ ♦♥ ♣(✐❝❡ ❞✐*❝(✐♠✐♥❛'✐♦♥ ✐♥ '❤✐* ❝❛*❡✱ ❛* ❞✐*❝✉**❡❞ ❛❜♦✈❡✳ ▼❛''❡(*
❛(❡ *❧✐❣❤'❧② ♠♦(❡ ❝♦♠♣❧❡① ✇❤❡♥ ♣(✐❝❡ ❞✐*❝(✐♠✐♥❛'✐♦♥ ❛✛❡❝'* '❤❡ ❡♥'(② ❞❡❝✐*✐♦♥ ♦❢ ✜(♠ B✳
❙✐♥❝❡ ❜② ❝♦♥*'(✉❝'✐♦♥ '❤❡ ✐♥❝✉♠❜❡♥'✬* ❛❝'✐✈✐'② ✐♥ '❤❡ ♠❛(❦❡' ✐* ♥♦' ❛' *'❛❦❡✱ ❢(♦♠ ❛ ✇❡❧❢❛(❡
♣❡(*♣❡❝'✐✈❡ ❤❡( ✜①❡❞ ❝♦*'* ❛(❡ ❝♦♥*✐❞❡(❡❞ *✉♥❦✳ ❚❤❡ ❡♥'(② ♦❢ '❤❡ ✐♥❝✉♠❜❡♥' '❤❡♥ ♣(♦♠♦'❡*
✇❡❧❢❛(❡ '❤(♦✉❣❤ ❛ (❡❞✉❝'✐♦♥ ✐♥ '(❛♥*♣♦('❛'✐♦♥ ❝♦*'*✱ ❜✉' ❝(❡❛'❡* ❝♦*'* '❤(♦✉❣❤ ✐♥❡✣❝✐❡♥'
*✇✐'❝❤✐♥❣ ❛♥❞ '❤❡ ✜①❡❞ ❝♦*' ♦❢ ❡♥'(② '❤❛' ♠✉*' ❜❡ *♣❡♥'✳ ■♥ ♦(❞❡( ❢♦( ♣(✐❝❡ ❞✐*❝(✐♠✐♥❛'✐♦♥ '♦
❛✛❡❝' ❡♥'(②✱ ❤♦✇❡✈❡(✱ ✐' ♠✉*' ❜❡ '❤❛' '❤❡ ❡♥'(❛♥'✬* ✜①❡❞ ❝♦*'* ❛(❡ *✉✣❝✐❡♥'❧② ❤✐❣❤ '❤❛' ❡✈❡♥
❞✐*(❡❣❛(❞✐♥❣ '❤❡ *✇✐'❝❤✐♥❣ ❝♦*' ❝♦♠♣♦♥❡♥' ♦❢ ✇❡❧❢❛(❡✱ ❡♥'(② ✐* ✐♥❡✣❝✐❡♥'✳ ❚❤✉*✱ '❤❡ (❡*✉❧'
♦❜'❛✐♥*✳
❊♥"#❛♥" ♠♦♥♦♣♦❧②✳ ❆❣❛✐♥✱ ❛❧❧ ❝♦♥*✉♠❡(* ❣❡' '❤❡ ❣♦♦❞✱ ❜✉' ♥♦✇ ❛❧❧ ♦❧❞ ❝♦♥*✉♠❡(* ♥❡❡❞ '♦
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✷ ✺✾
"✇✐%❝❤✿
W2 = θ
1ˆ
0
β − t(1− x)dx+ (1− θ)
1ˆ
0
β − t(1− x)− sdx− c− FB ✭✷✳✹✳✶✶✮
= β − t
2− (1− θ)s− c− FB
!♦♣♦$✐&✐♦♥ ✷✳✹✳✸✳ ●✐✈❡♥ %❤❛% %❤❡ ❡♥%(❛♥% ❥♦✐♥+ %❤❡ ♠❛(❦❡%✱ ❜❛♥♥✐♥❣ ♣(✐❝❡ ❞✐+❝(✐♠✐♥❛%✐♦♥
❜② %❤❡ ✐♥❝✉♠❜❡♥% ♠❛①✐♠✐+❡+ +♦❝✐❛❧ ✇❡❧❢❛(❡ ✐❢ ✐% ❞♦❡+ ♥♦% ❝❛✉+❡ ❡①✐% ♦( %❤❡ +✇✐%❝❤✐♥❣ ❝♦+% ✐+
❜❡❧♦✇ %(❛♥+♣♦(%❛%✐♦♥ ❝♦+% ✭s < t✮
<(♦♦❢✳ ❚♦ ❡♥"✉4❡ ❡♥%4② ❜② ✜4♠ B✱ ✇❡ ♠✉"% ❤❛✈❡ FB ≤ π∗ADUO ❢♦4 ❛❧❧ ♣♦""✐❜❧❡ ♣♦❧✐❝✐❡" q✳
❆♥❛❧♦❣♦✉"❧② %♦ %❤❡ ♣4❡✈✐♦✉" ♣4♦♣♦"✐%✐♦♥✱ %✇♦ ❝❛"❡" ♥❡❡❞ %♦ ❜❡ ❞✐"%✐♥❣✉✐"❤❡❞✿
✶✳ B4✐❝❡ ❞✐"❝4✐♠✐♥❛%✐♦♥ ♥♦% ♠❛4❣✐♥❛❧ %♦ ❡①✐%
■❢ FA ≤ π∗ADUO|q = 0✱ %❤❡ ✐♥❝✉♠❜❡♥% ✇✐❧❧ "%❛② ✐♥ %❤❡ ♠❛4❦❡% ❢♦4 ❛♥② ♣♦❧✐❝② q✳ ❋4♦♠
♣4♦♣♦"✐%✐♦♥ ✷✳✹✳✶✱ %❤❡ ✇❡❧❢❛4❡ ♠❛①✐♠✐"✐♥❣ ♣♦❧✐❝② ✐" %♦ ❜❛♥ ♣4✐❝❡ ❞✐"❝4✐♠✐♥❛%✐♦♥✳
✷✳ B4✐❝❡ ❞✐"❝4✐♠✐♥❛%✐♦♥ ✐" ♠❛4❣✐♥❛❧ %♦ ❡①✐%✳
❲❤❡♥ π∗ADUO|q = 0 ≤ Fa ≤ π∗ADUO|q = s/3✱ ♣♦❧✐❝② ♠❛② ❜4✐♥❣ ❛❜♦✉% ❜♦%❤ ❡H✉✐❧✐❜4✐❛ ✐♥
✇❤✐❝❤ %❤❡ ✐♥❞✉"%4② ✐" ❛ ❞✉♦♣♦❧② ✭✇❤❡♥ 4❡❣✉❧❛%✐♦♥ ♦❢ B❉ ✐" ❧❛①✮ ♦4 %❤❡ ❡♥%4❛♥% ❜❡❝♦♠❡"
❛ ♠♦♥♦♣♦❧✐"% ✇❤✐❧❡ %❤❡ ✐♥❝✉♠❜❡♥% ❡①✐%" ✭❢♦4 %✐❣❤% 4❡❣✉❧❛%✐♦♥ ♦❢ B❉✮✳
W3 −W2 =t
4− 7(sθ)2 + 13s2θ
144t+
s(1− θ)
2+
5s2
36t− Fa ✭✷✳✹✳✶✷✮
≤ t
4+ s(1− θ)− Fa ✭✷✳✹✳✶✸✮
= − t
4− s2(1− θ)
18t+
2s(1− θ)
3✭✷✳✹✳✶✹✮
❲❤❡♥ s < t✱ %❤❡ ❡①♣4❡""✐♦♥ ✐" ❣✉❛4❛♥%❡❡❞ %♦ ❜❡ ♥❡❣❛%✐✈❡✱ "♦ ❡♥%4❛♥% ♠♦♥♦♣♦❧② ❛♥❞
❤❡♥❝❡ 4❡❣✉❧❛%✐♦♥ ♦❢ ♣4✐❝❡ ❞✐"❝4✐♠✐♥❛%✐♦♥ ♠❛①✐♠✐"❡" "♦❝✐❛❧ ✇❡❧❢❛4❡✳
❆ ♣♦%❡♥%✐❛❧ ❡①✐% ❜② %❤❡ ✐♥❝✉♠❜❡♥% ✐" ❞❛♠❛❣✐♥❣ %♦ ✇❡❧❢❛4❡ ❜❡❝❛✉"❡ ❛❧❧ ♦❧❞ ❝♦♥"✉♠❡4" ♠✉"%
✐♥❝✉4 %❤❡ "✇✐%❝❤✐♥❣ ❝♦"% %♦ ♠♦✈❡ %♦ %❤❡ ❡♥%4❛♥%✳ ❚❤✐" ♥❛%✉4❛❧❧② ✇❡❛❦❡♥" %❤❡ ✇❡❧❢❛4❡ 4❛%✐♦♥❛❧❡
❢♦4 ❡♥%4❛♥% ♠♦♥♦♣♦❧②✳ ❚♦ ❣✉❛4❛♥%❡❡ %❤❛% "♦❝✐❛❧ ✇❡❧❢❛4❡ 4✐"❡" ✐♥ %❤✐" ❝❛"❡✱ ❛ ❢✉4%❤❡4 ❝♦♥❞✐%✐♦♥
♦♥ %❤❡ ♣❛4❛♠❡%❡4" ✐" 4❡H✉✐4❡❞✱ ✐✳❡✳ %❤❡ %4❛♥"♣♦4%❛%✐♦♥ ❝♦"% "❤♦✉❧❞ ❜❡ ❜❡❧♦✇ %❤❡ "✇✐%❝❤✐♥❣
❝♦"%✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✻✵ ❍✐"#♦%②✕❇❛"❡❞ ,%✐❝❡ ❉✐"❝%✐♠✐♥❛#✐♦♥ ❛♥❞ ❲❡❧❢❛%❡ ✐♥ ❛ ●%♦✇✐♥❣ ▼❛%❦❡#
✷✳✺ ❈♦♥❝❧✉)✐♦♥
❚❤✐% ♣❛♣❡) %*✉❞✐❡❞ ❛ ♠♦❞❡❧ ♦❢ ❤✐%*♦)②✕❜❛%❡❞ ♣)✐❝❡ ❞✐%❝)✐♠✐♥❛*✐♦♥ ✐♥ *❤❡ ❝♦♥*❡①* ♦❢ ❛ ❣)♦✇✐♥❣
♠❛)❦❡*✱ ✇❤❡)❡ ♦❧❞ ❛♥❞ ♥❡✇ ❝♦♥%✉♠❡)% ♠❛② ❜❡ *)❡❛*❡❞ ❞✐✛❡)❡♥*❧②✳ ❚❤❡ ❦❡② ❝♦♥*)✐❜✉*✐♦♥
♦❢ *❤❡ ♣)❡%❡♥* %*✉❞② ✇❛% *♦ ❛❧❧♦✇ *❤❡ ♣♦*❡♥*✐❛❧ ❡♥*)❛♥* *♦ ❡♥❣❛❣❡ ✐♥ ♣)✐❝❡ ❞✐%❝)✐♠✐♥❛*✐♦♥✱
%♦ ❧♦♥❣ ❛% *❤❡ ❝♦♥%✉♠❡)%✬ ✐♥❝❡♥*✐✈❡ ❝♦♠♣❛*✐❜✐❧✐*② ❝♦♥%*)❛✐♥* ✐% ♠❡*✳ ❚❤✐% ❝♦♥%*)❛✐♥* ❛)✐%❡%
❜❡❝❛✉%❡ *❤❡ ❡♥*)❛♥* ❞♦❡% ♥♦* ❞✐)❡❝*❧② ♦❜%❡)✈❡ ✇❤♦ ♣)❡✈✐♦✉%❧② ♣✉)❝❤❛%❡❞ ❢)♦♠ *❤❡ ✐♥❝✉♠❜❡♥*❀
❤♦✇❡✈❡)✱ ❛% *❤❡ ♠♦❞❡❧ %❤♦✇%✱ *❤✐% ♣)❡%❡♥*% ♥♦ %*)❛*❡❣✐❝ ❞✐%❛❞✈❛♥*❛❣❡ ✕ ✐♥ ❛♥② ❡@✉✐❧✐❜)✐✉♠✱
*❤❡ ✐♥❝❡♥*✐✈❡ ❝♦♥%*)❛✐♥* ✐% ♥♦♥✕❜✐♥❞✐♥❣✱ ❛♥❞ ❜♦"❤ ✜)♠% ❡♥❣❛❣❡ ✐♥ ♣)✐❝❡ ❞✐%❝)✐♠✐♥❛*✐♦♥✳
B)✐❝❡ ❞✐%❝)✐♠✐♥❛*✐♦♥ ✐♥ *❤✐% %❡**✐♥❣ ❤❛% ✈❡)② ❛❞✈❡)%❡ ✇❡❧❢❛)❡ ❝♦♥%❡@✉❡♥❝❡%✳ ■♥ ♣❛)*✐❝✉❧❛)✱
*❤❡ ♠❛)❦❡* ♦❢ ♦❧❞ ❝♦♥%✉♠❡)% ✐% ❤❡❛✈✐❧② ❞✐%*♦)*❡❞ *❤)♦✉❣❤ ❡①❝❡%%✐✈❡ ❝♦♥%✉♠❡) %✇✐*❝❤✐♥❣✳ ❲❤✐❧❡
*❤❡ ♠❛)❦❡* ❢♦) ♥❡✇ ❝♦♥%✉♠❡)% ❛**❛✐♥% ❛♥ ❡✣❝✐❡♥* ❛❧❧♦❝❛*✐♦♥ ✉♥❞❡) ♣)✐❝❡ ❞✐%❝)✐♠✐♥❛*✐♦♥✱ *❤❡
✇❡❧❢❛)❡ ❝♦%*% ✐♥ *❤❡ ♦❧❞ %❡❣♠❡♥* ❛)❡ %✉✣❝✐❡♥*❧② %*)♦♥❣ *♦ ❛%%✉)❡ *❤❛* ♣)✐❝❡ ❞✐%❝)✐♠✐♥❛*✐♦♥
❤✉)*% ❝♦♥%✉♠❡) ❛♥❞ ♣)♦❞✉❝❡) %✉)♣❧✉% ❛)✐%❡✳ ❚❤✉%✱ ❣✐✈❡♥ *❤❛* ❛ ❞✉♦♣♦❧② ♠❛)❦❡* %*)✉❝*✉)❡ ✐%
✐♥ ♣❧❛❝❡✱ ❜❛♥♥✐♥❣ ♣)✐❝❡ ❞✐%❝)✐♠✐♥❛*✐♦♥ ✐% *❤❡ ♦♣*✐♠❛❧ ♣♦❧✐❝② ✐♥ *❤✐% ❢)❛♠❡✇♦)❦✳
❘❡❣✉❧❛*✐♦♥ ♠❛② ❛❧%♦ ❛✛❡❝* ❡♥*)② ❛♥❞ ❡①✐* ❞❡❝✐%✐♦♥%✱ )❡@✉✐)✐♥❣ ❛ ❝❛)❡❢✉❧ ✇❡❧❢❛)❡ ❛♥❛❧②%✐%✳
❲❤❡♥ ❛♥ ✐♥✐*✐❛❧❧② ♠♦♥♦♣♦❧✐%❡❞ ✐♥❞✉%*)② ❜❡❝♦♠❡% %✉❜❥❡❝* *♦ ❝♦♠♣❡*✐*✐♦♥✱ ♦♥❡ ♠✉%* *)❛❞❡
♦✛ ✕ ❢)♦♠ ❛ %♦❝✐❛❧ ✇❡❧❢❛)❡ ♣❡)%♣❡❝*✐✈❡ ✕ *❤❡ ❣❛✐♥% ❛)✐%✐♥❣ ❞✉❡ *♦ )❡❞✉❝❡❞ *)❛♥%♣♦)*❛*✐♦♥
❝♦%* ❛❣❛✐♥%* *❤❡ ❛❞❞❡❞ ✜①❡❞ ❝♦%* ❡①♣❡♥❞❡❞ ❜② *❤❡ ❡♥*)❛♥*✳ ❙✐♥❝❡ *❤❡ ❡♥*)❛♥* ♣❛)*✐❛❧❧②
✏%*❡❛❧%✑ )❡♥* ❢)♦♠ *❤❡ ✐♥❝✉♠❜❡♥*✱ ❤❡) ✐♥❝❡♥*✐✈❡ *♦ ❡♥*❡) *❤❡ ✐♥❞✉%*)② ✐% ❣❡♥❡)❛❧❧② ✐♥❡✣❝✐❡♥*❧②
%*)♦♥❣✳ ■♥ ❢❛❝*✱ ■ %❤♦✇ *❤❛* ♣)✐❝❡ ❞✐%❝)✐♠✐♥❛*✐♦♥ ✐% ♦♥❧② ♠❛)❣✐♥❛❧ *♦ ❡♥*)② ✇❤❡♥ ❡♥*)② ✇♦✉❧❞
❜❡ ✐♥❡✣❝✐❡♥*✳ ❚❤❡)❡❢♦)❡✱ ♣)✐❝❡ ❞✐%❝)✐♠✐♥❛*✐♦♥ ❜❛♥% *❤❛* ❡♥❝♦✉)❛❣❡ ❡♥*)② ❛)❡ ♥♦* ✇❡❧❢❛)❡
♠❛①✐♠✐%✐♥❣ ✐♥ *❤✐% ♠♦❞❡❧✱ ❛❧*❤♦✉❣❤ *❤❡② ♠❛② ❜❡♥❡✜* ❝♦♥%✉♠❡)%✳ ❈♦♥✈❡)%❡❧②✱ ✇❤❡♥ *❤❡
✐♥❝✉♠❜❡♥* ✐% ✉♥❞❡) *❤)❡❛* ♦❢ ❡①✐*✱ ❛ ❜❛♥ ♦♥ ♣)✐❝❡ ❞✐%❝)✐♠✐♥❛*✐♦♥ ♠❛② ❝♦♥%♦❧✐❞❛*❡ *❤❡ ✐♥❞✉%*)②
✐♥*♦ ❛♥ ❡♥*)❛♥* ♠♦♥♦♣♦❧②✳ ❆ %✉✣❝✐❡♥* ❝♦♥❞✐*✐♦♥ ❢♦) *❤✐% *♦ ❜❡ ♦♣*✐♠❛❧ ✐% *❤❛* %✇✐*❝❤✐♥❣ ❝♦%*%
❛)❡ ♥♦* ❧❛)❣❡) *❤❛♥ *)❛♥%♣♦)*❛*✐♦♥ ❝♦%*%✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❇✐❜❧✐♦❣&❛♣❤②
❆!♠#$!♦♥❣✱ ▼✳✱ ❱✐❝❦❡!#✱ ❏✳✱ ✶✾✾✸✳ 4!✐❝❡ ❞✐#❝!✐♠✐♥❛$✐♦♥✱ ❝♦♠♣❡$✐$✐♦♥ ❛♥❞ !❡❣✉❧❛$✐♦♥✳ ❚❤❡
❏♦✉!♥❛❧ ♦❢ ■♥❞✉#$!✐❛❧ ❊❝♦♥♦♠✐❝#✱ ✸✸✺✕✸✺✾✳
❇❡#$❡!✱ ❍✳✱ 4❡$!❛❦✐#✱ ❊✳✱ ✶✾✾✻✳ ❈♦✉♣♦♥# ❛♥❞ ♦❧✐❣♦♣♦❧✐#$✐❝ ♣!✐❝❡ ❞✐#❝!✐♠✐♥❛$✐♦♥✳ ■♥$❡!♥❛$✐♦♥❛❧
❏♦✉!♥❛❧ ♦❢ ■♥❞✉#$!✐❛❧ ❖!❣❛♥✐③❛$✐♦♥ ✶✹ ✭✷✮✱ ✷✷✼✕✷✹✷✳
❇♦✉❝❦❛❡!$✱ ❏✳✱ ❉❡❣!②#❡✱ ❍✳✱ ❉✐❥❦✱ ❚✳✱ ✷✵✶✸✳ ❇❡!$!❛♥❞ ❝♦♠♣❡$✐$✐♦♥ ✇✐$❤ ❛♥ ❛#②♠♠❡$!✐❝ ♥♦✲
❞✐#❝!✐♠✐♥❛$✐♦♥ ❝♦♥#$!❛✐♥$✳ ❚❤❡ ❏♦✉!♥❛❧ ♦❢ ■♥❞✉#$!✐❛❧ ❊❝♦♥♦♠✐❝# ✻✶ ✭✶✮✱ ✻✷✕✽✸✳
❈❤❡♥✱ ❨✳✱ ✶✾✾✼✳ 4❛②✐♥❣ ❝✉#$♦♠❡!# $♦ #✇✐$❝❤✳ ❏♦✉!♥❛❧ ♦❢ ❊❝♦♥♦♠✐❝# ✫ ▼❛♥❛❣❡♠❡♥$ ❙$!❛$❡❣②
✻ ✭✹✮✱ ✽✼✼✕✽✾✼✳
❈❤❡♥✱ ❨✳✱ ✷✵✵✽✳ ❉②♥❛♠✐❝ ♣!✐❝❡ ❞✐#❝!✐♠✐♥❛$✐♦♥ ✇✐$❤ ❛#②♠♠❡$!✐❝ ✜!♠#✳ ❚❤❡ ❏♦✉!♥❛❧ ♦❢ ■♥❞✉#✲
$!✐❛❧ ❊❝♦♥♦♠✐❝# ✺✻ ✭✹✮✱ ✼✷✾✕✼✺✶✳
❈♦!$#✱ ❑✳✱ ✶✾✾✽✳ ❚❤✐!❞✲❞❡❣!❡❡ ♣!✐❝❡ ❞✐#❝!✐♠✐♥❛$✐♦♥ ✐♥ ♦❧✐❣♦♣♦❧②✿ ❛❧❧✲♦✉$ ❝♦♠♣❡$✐$✐♦♥ ❛♥❞
#$!❛$❡❣✐❝ ❝♦♠♠✐$♠❡♥$✳ ❚❤❡ ❘❆◆❉ ❏♦✉!♥❛❧ ♦❢ ❊❝♦♥♦♠✐❝#✱ ✸✵✻✕✸✷✸✳
❋❛!!❡❧❧✱ ❏✳✱ ❑❛$③✱ ▼✳ ▲✳✱ ✷✵✵✻✳ ❚❤❡ ❡❝♦♥♦♠✐❝# ♦❢ ✇❡❧❢❛!❡ #$❛♥❞❛!❞# ✐♥ ❛♥$✐$!✉#$✳
❋✉❞❡♥❜❡!❣✱ ❉✳✱ ❱✐❧❧❛#✲❇♦❛#✱ ❏✳✱ ❍❡♥❞❡!#❤♦$$✱ ❚✳✱ ✷✵✵✻✳ ❇❡❤❛✈✐♦!✲❜❛#❡❞ ♣!✐❝❡ ❞✐#❝!✐♠✐♥❛$✐♦♥
❛♥❞ ❝✉#$♦♠❡! !❡❝♦❣♥✐$✐♦♥✳ ❍❛♥❞❜♦♦❦ ♦♥ ❡❝♦♥♦♠✐❝# ❛♥❞ ✐♥❢♦!♠❛$✐♦♥ #②#$❡♠# ✶✱ ✸✼✼✕✹✸✻✳
●❡❤!✐❣✱ ❚✳✱ ❙❤②✱ ❖✳✱ ❙$❡♥❜❛❝❦❛✱ ❘✳✱ ✷✵✶✶✳ ❍✐#$♦!②✲❜❛#❡❞ ♣!✐❝❡ ❞✐#❝!✐♠✐♥❛$✐♦♥ ❛♥❞ ❡♥$!② ✐♥
♠❛!❦❡$# ✇✐$❤ #✇✐$❝❤✐♥❣ ❝♦#$#✿ ❛ ✇❡❧❢❛!❡ ❛♥❛❧②#✐#✳ ❊✉!♦♣❡❛♥ ❊❝♦♥♦♠✐❝ ❘❡✈✐❡✇ ✺✺ ✭✺✮✱ ✼✸✷✕
✼✸✾✳
●❡❤!✐❣✱ ❚✳✱ ❙❤②✱ ❖✳✱ ❙$❡♥❜❛❝❦❛✱ ❘✳✱ ✷✵✶✷✳ ❆ ✇❡❧❢❛!❡ ❡✈❛❧✉❛$✐♦♥ ♦❢ ❤✐#$♦!②✲❜❛#❡❞ ♣!✐❝❡ ❞✐#✲
❝!✐♠✐♥❛$✐♦♥✳ ❏♦✉!♥❛❧ ♦❢ ■♥❞✉#$!②✱ ❈♦♠♣❡$✐$✐♦♥ ❛♥❞ ❚!❛❞❡ ✶✷ ✭✹✮✱ ✸✼✸✕✸✾✸✳
●❡!❛❞✐♥✱ ❉✳✱ 4❡$✐$✱ ◆✳✱ ✷✵✵✺✳ 4!✐❝❡ ❞✐#❝!✐♠✐♥❛$✐♦♥ ✉♥❞❡! ❡❝ ❝♦♠♣❡$✐$✐♦♥ ❧❛✇✳ ❚❤❡ ♣!♦# ❛♥❞
❝♦♥# ♦❢ ♣!✐❝❡ ❞✐#❝!✐♠✐♥❛$✐♦♥✳ ❙✇❡❞✐#❤ ❈♦♠♣❡$✐$✐♦♥ ❆✉$❤♦!✐$②✱ ❙$♦❝❦❤♦❧♠✱ ✷✶✕✻✹✳
✻✶
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✻✷ ❇■❇▲■❖●❘❆'❍❨
❍❛✉❝❛♣✱ ❏✳✱ ✷✵✵✸✳ ❙❡❧❡❝/✐✈❡ ♣2✐❝❡ ❝✉/3 ❛♥❞ ✉♥✐❢♦2♠ ♣2✐❝✐♥❣ 2✉❧❡3 ✐♥ ♥❡/✇♦2❦ ✐♥❞✉3/2✐❡3✳ ❏♦✉2♥❛❧
♦❢ ■♥❞✉3/2②✱ ❈♦♠♣❡/✐/✐♦♥ ❛♥❞ ❚2❛❞❡ ✸✱ ✷✻✾✕✷✾✶✳
❑❛2❧✐♥❣❡2✱ ▲✳✱ ▼♦//❛✱ ▼✳✱ ✷✵✶✷✳ ❊①❝❧✉3✐♦♥❛2② ♣2✐❝✐♥❣ ✇❤❡♥ 3❝❛❧❡ ♠❛//❡23✳ ❚❤❡ ❏♦✉2♥❛❧ ♦❢
■♥❞✉3/2✐❛❧ ❊❝♦♥♦♠✐❝3 ✻✵ ✭✶✮✱ ✼✺✕✶✵✸✳
▼♦//❛✱ ▼✳✱ ✷✵✵✹✳ ❈♦♠♣❡/✐/✐♦♥ ♣♦❧✐❝②✿ /❤❡♦2② ❛♥❞ ♣2❛❝/✐❝❡✳ ❈❛♠❜2✐❞❣❡ ❯♥✐✈❡23✐/② Q2❡33✳
❙❡❣❛❧✱ ■✳ ❘✳✱ ❲❤✐♥3/♦♥✱ ▼✳ ❉✳✱ ✷✵✵✵✳ ◆❛❦❡❞ ❡①❝❧✉3✐♦♥✿ ❝♦♠♠❡♥/✳ ❚❤❡ ❆♠❡2✐❝❛♥ ❊❝♦♥♦♠✐❝
❘❡✈✐❡✇ ✾✵ ✭✶✮✱ ✷✾✻✕✸✵✾✳
❙♣❡❝/♦2✱ ❉✳✱ ✷✵✵✺✳ ❚❤❡ 3/2❛/❡❣✐❝ ✉3❡3 ♦❢ ♣2✐❝❡ ❞✐3❝2✐♠✐♥❛/✐♦♥✳ ❚❤❡ ♣2♦3 ❛♥❞ ❝♦♥3 ♦❢ ♣2✐❝❡
❞✐3❝2✐♠✐♥❛/✐♦♥✳ ❙✇❡❞✐3❤ ❈♦♠♣❡/✐/✐♦♥ ❆✉/❤♦2✐/②✱ ❙/♦❝❦❤♦❧♠✱ ✶✽✼✕✷✶✶✳
❚❤✐33❡✱ ❏✳✲❋✳✱ ❱✐✈❡3✱ ❳✳✱ ✶✾✽✽✳ ❖♥ /❤❡ 3/2❛/❡❣✐❝ ❝❤♦✐❝❡ ♦❢ 3♣❛/✐❛❧ ♣2✐❝❡ ♣♦❧✐❝②✳ ❚❤❡ ❆♠❡2✐❝❛♥
❊❝♦♥♦♠✐❝ ❘❡✈✐❡✇✱ ✶✷✷✕✶✸✼✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡& ✸
❖❢ *❡♥♥✐❡- ❛♥❞ *&♦-♣❡❝$-✿
❯♥❞❡&-$❛♥❞✐♥❣ ❇❡❤❛✈✐♦✉& ✐♥ *❡♥♥②
❆✉❝$✐♦♥-
❆❜"#$❛❝#✳ ❡♥♥② ❛✉❝'✐♦♥* ❛+❡ ❛*❝❡♥❞✐♥❣ ❛✉❝'✐♦♥* ✇❤❡+❡ ❜✐❞❞❡+* ♣❛② ❛ ❢❡❡ ❢♦+ ❡❛❝❤ ❜✐❞ '❤❡②
♣❧❛❝❡✳ ❚❤❡ ❧❛*' ❜✐❞❞❡+ ✇✐♥* '❤❡ ❛✉❝'✐♦♥ ✕ '❤✉* ❛ ❜✐❞ ✐* ❡**❡♥'✐❛❧❧② ❛ ❜❡' ♦♥ ❜❡✐♥❣ '❤❡ ❧❛*'
❜✐❞❞❡+✱ ❛❞❞✐♥❣ ❛ ❞✐♠❡♥*✐♦♥ ♦❢ ❣❛♠❜❧✐♥❣ '♦ '❤❡ ❛✉❝'✐♦♥✳ ❆❧*♦✱ ❧✐❦❡ ❧♦''❡+✐❡* ❛♥❞ *❧♦' ♠❛❝❤✐♥❡*✱
'❤❡*❡ ❛✉❝'✐♦♥* ❛+❡ ♦❢'❡♥✱ ❜✉' ♥♦' ❛❧✇❛②*✱ ❤✐❣❤❧② ♣+♦✜'❛❜❧❡ ❢♦+ '❤❡ *❡❧❧❡+✳ ❚❤❡ ♣❛♣❡+ ❡①♣❧❛✐♥*
'❤❡*❡ ❢❛❝'* ✉*✐♥❣ ♣+♦*♣❡❝' '❤❡♦+②✱ ♦❜'❛✐♥✐♥❣ ❡*'✐♠❛'❡* ❢♦+ '❤❡ ♣+♦❜❛❜✐❧✐'② ✇❡✐❣❤'✐♥❣ ❛♥❞ ✈❛❧✉❡
❢✉♥❝'✐♦♥* '❤❛' ❛+❡ ✐♥ ❧✐♥❡ ✇✐'❤ '❤❡ ❧✐'❡+❛'✉+❡✳ ■♥ ❝♦♥'+❛*' '♦ '❤❡ ❝♦♠♣❡'✐♥❣ ❤②♣♦'❤❡*✐* ♦❢ +✐*❦✕
❧♦✈✐♥❣ ❜✐❞❞❡+*✱ '❤❡ ♠♦❞❡❧ ❝❛♥ ❡①♣❧❛✐♥ ✇❤② ❛✉❝'✐♦♥* ❢♦+ ❧♦✇✕✈❛❧✉❡ ♦❜❥❡❝'* ❛+❡ ✉♥♣+♦✜'❛❜❧❡✳
✸✳✶ ■♥%&♦❞✉❝%✐♦♥
❡♥♥② ❛✉❝'✐♦♥* ❛+❡ ❛ ♥♦✈❡❧'② ♦♥❧✐♥❡ ❛✉❝'✐♦♥ ❢♦+♠❛'✱ ✇❤❡+❡ ❡❛❝❤ ❜✐❞❞❡+ ♣❛②* ❛ ✜①❡❞ ❢❡❡ '♦
♣❧❛❝❡ ❛ ❜✐❞✳ ❚❤✐* ❢❡❡ +❛✐*❡* '❤❡ ❝✉++❡♥' ♣+✐❝❡ ✐♥ '❤❡ ❛✉❝'✐♦♥ ❜② ❛ ✜①❡❞ ❛♠♦✉♥' ✭'❤❡ ♣+✐❝❡
✐♥❝+❡♠❡♥'✮✳ ❚❤❡ ❧❛*' ❛❣❡♥' '♦ ♣❧❛❝❡ ❛ ❜✐❞ ✇✐♥* '❤❡ ❣♦♦❞✱ ❛* ✐♥ ❛ *'❛♥❞❛+❞ ❛✉❝'✐♦♥ ✕ *✉❝❤
❛* '❤♦*❡ ❝♦♥❞✉❝'❡❞ ♦♥ ❡❇❛②✳ ❇✉'✱ ❝+✉❝✐❛❧❧②✱ ♣❛+'✐❝✐♣❛♥'* ♣❛② ❛ ❢❡❡ ❢♦+ ❡❛❝❤ ❜✐❞ '❤❡② ♣❧❛❝❡✱
❡✈❡♥ ✐❢ '❤❡② ❞♦ ♥♦' ❣♦ ♦♥ '♦ ✇✐♥ '❤❡ ❛✉❝'✐♦♥✳ ❚❤✉*✱ '❤❡ ❛✉❝'✐♦♥ ❝❛♥ ❜❡ *❡❡♥ ❛* ❛ ❤②❜+✐❞ ✇✐'❤
❛ ❧♦''❡+②✿ ♣❧❛❝✐♥❣ ❛ ❜✐❞ ❡**❡♥'✐❛❧❧② ❛♠♦✉♥'* '♦ ♣❧❛❝✐♥❣ ❛ ❜❡' '❤❛' ♥♦ ♦'❤❡+ ♣❛+'✐❝✐♣❛♥'* ✇✐❧❧
♣❧❛❝❡ ❜✐❞* ✐♥ '❤❡ ♥❡①' +♦✉♥❞✱ ✐♥ '❤❡ ❤♦♣❡ ♦❢ ✇✐♥♥✐♥❣ '❤❡ ♦❜❥❡❝' ❛' ❛ ❢+❛❝'✐♦♥ ♦❢ ✐'* +❡'❛✐❧ ♣+✐❝❡✳
❚❤❡*❡ ❛✉❝'✐♦♥* ❛+❡ ❡♠♣✐+✐❝❛❧❧② ✈❡+② ✐♥'❡+❡*'✐♥❣✱ ❜❡❝❛✉*❡ ✕ ✐♥ '❤❡ ✇♦+❞* ♦❢ ❚❤❛❧❡+ ✭✷✵✵✾✮ ✕
✻✸
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✻✹ ❖❢ "❡♥♥✐❡& ❛♥❞ ")♦&♣❡❝-&✿ ❯♥❞❡)&-❛♥❞✐♥❣ ❇❡❤❛✈✐♦✉) ✐♥ "❡♥♥② ❆✉❝-✐♦♥&
♣❛$%✐❝✐♣❛♥%) ✏♣❛② ❛ ♣$✐❝❡ ❢♦$ %❤❡ %❤$✐❧❧ ♦❢ %❤❡ ❤✉♥%✑✿ ♦♥ ❛✈❡$❛❣❡✱ %❤❡ )❡❧❧❡$) $❡✈❡♥✉❡✱ ❢$♦♠
✇✐♥♥❡$) ❛♥❞ ❧♦)❡$) ❝♦♠❜✐♥❡❞✱ ❡①❝❡❡❞) %❤❡ ✈❛❧✉❡ ♦❢ ❣♦♦❞) )♦❧❞ ❜② ♥❡❛$❧② ✺✵✪✦
❙✇♦♦♣♦✱ ❛ ♥♦✇✕❞❡❢✉♥❝% ●❡$♠❛♥ ❝♦♠♣❛♥②✱ ✜$)% ✐♥%$♦❞✉❝❡❞ %❤❡)❡ ❛✉❝%✐♦♥) %♦ %❤❡ ♠❛$❦❡%✳
❯)✐♥❣ ❛ $✐❝❤ ❞❛%❛)❡% ♦❢ ❣❛♠❡ ❛✉❝%✐♦♥) ❝♦♥❞✉❝%❡❞ ♦♥ ✐%) ❯♥✐%❡❞ ❑✐♥❣❞♦♠ ✇❡❜)✐%❡ ❜❡%✇❡❡♥ ✷✵✵✾
❛♥❞ ✷✵✶✵✱ ❝♦♥%❛✐♥✐♥❣ ♦✈❡$ ✷✺✵✵✵ ❛✉❝%✐♦♥)✱ ■ ❞❡✈❡❧♦♣ )♦♠❡ )%②❧✐)❡❞ ❢❛❝%) ♦♥ ♣❡♥♥② ❛✉❝%✐♦♥)✳ ❆)
❆✉❣❡♥❜❧✐❝❦ ✭✷✵✶✷✮✱ %❧❛(( ❡( ❛❧✳ ✭✷✵✶✸✮ ❛♥❞ ❍✐♥♥♦2❛❛3 ✭✷✵✶✵✮ ❤❛✈❡ ♥♦(❡❞✱ ♣❡♥♥② ❛✉❝(✐♦♥2 ❛3❡
✐♥❞❡❡❞✱ ♦♥ ❛✈❡3❛❣❡✱ ✈❡3② ♣3♦✜(❛❜❧❡ ❢♦3 (❤❡ 2❡❧❧❡3✳ ❍♦✇❡✈❡3✱ (❤✐2 ❛❣❣3❡❣❛(❡ ♠❛2❦2 ❝♦♥2✐❞❡3❛❜❧❡
❤❡(❡3♦❣❡♥❡✐(②❀ ✐♥ ♣❛3(✐❝✉❧❛3✱ ❛✉❝(✐♦♥2 ❢♦3 ❧♦✇✕♣3✐❝❡❞ ♣3♦❞✉❝(2 ②✐❡❧❞❡❞ ❧❡22 3❡✈❡♥✉❡ (❤❛♥ (❤❡
✈❛❧✉❡ ♦❢ (❤❡ ❣♦♦❞ ♦♥ ❛✈❡3❛❣❡✳ ❋✉3(❤❡3♠♦3❡✱ ■ ❞❡✈❡❧♦♣ 2♦♠❡ ❢❛❝(2 ♦♥ (❤❡ 3♦❧❡ ♦❢ (❤❡ ♣3✐❝❡
✐♥❝3❡♠❡♥( ❛♥❞ ✭♠♦♥❡(❛3②✮ 3❡(✉3♥2 (♦ ❜✐❞❞✐♥❣ ❞✉3✐♥❣ ❞✐✛❡3❡♥( 3♦✉♥❞2 ♦❢ ❛✉❝(✐♦♥2✱ ✉2✐♥❣ ❜♦(❤
✈❛3✐❛(✐♦♥2 ❜❡(✇❡❡♥ ❛✉❝(✐♦♥2 ❢♦3 ❞✐✛❡3❡♥( ♦❜❥❡❝(2 ❛♥❞ ✇✐(❤✐♥ ❛✉❝(✐♦♥2 ❢♦3 (❤❡ 2❛♠❡ ♦❜❥❡❝(✳
❚❤✐2 2❤♦✇2 (❤❛( ❛ ✈❡32✐♦♥ ♦❢ (❤❡ ❧♦♥❣✕2❤♦( ❜✐❛2 ❖((❛✈✐❛♥✐ ❛♥❞ ❙J3❡♥2❡♥ ✭✷✵✵✽✮ ❢❛♠✐❧✐❛3 ❢3♦♠
♠❛♥② ❜❡((✐♥❣ ♠❛3❦❡(2 ✐2 ♣3❡2❡♥( ✐♥ ♣❡♥♥② ❛✉❝(✐♦♥2✳
❚❤❡ ❝❡♥(3❛❧ ❝♦♥(3✐❜✉(✐♦♥ ♦❢ (❤❡ ♣❛♣❡3 ✐2 (♦ ❡①♣❧❛✐♥ (❤❡ 2(②❧✐2❡❞ ❢❛❝(2 ♦❢ ♣❡♥♥② ❛✉❝(✐♦♥
❜❡❤❛✈✐♦✉3 ✉2✐♥❣ ♣3♦2♣❡❝( (❤❡♦3② ✭❑❛❤♥❡♠❛♥ ❛♥❞ ❚✈❡32❦②✱ ✶✾✼✾❀ ❚✈❡32❦② ❛♥❞ ❑❛❤♥❡♠❛♥✱
✶✾✾✷✮✳ %❡3❤❛♣2 (❤❡ ❧❡❛❞✐♥❣ ❛❧(❡3♥❛(✐✈❡ (❤❡♦3② (♦ ❡①♣❡❝(❡❞ ✉(✐❧✐(② ✭❙(❛3♠❡3✱ ✷✵✵✵✮✱ ♣3♦2♣❡❝(
(❤❡♦3② ✐♥❝♦3♣♦3❛(❡2 3❡❣✉❧❛3✐(✐❡2 ♦❢ ❜❡❤❛✈✐♦✉3 ❢♦✉♥❞ ✐♥ ❧❛❜♦3❛(♦3② 2(✉❞✐❡2
✶
(♦ ♣3♦✈✐❞❡ ❛ ❞❡✲
#❝%✐♣(✐✈❡ ❛❝❝♦✉♥( ♦❢ ❤✉♠❛♥ ❛((✐(✉❞❡2 (♦ 3✐2❦✳ ❚❤❡ (❤❡♦3② ✐2 ❛❜❧❡ (♦ ❡①♣❧❛✐♥ ❤✐❣❤ 3❡✈❡♥✉❡ ✐♥
♣❡♥♥② ❛✉❝(✐♦♥2 (❤3♦✉❣❤ ♣3♦❜❛❜✐❧✐(② ✇❡✐❣❤(✐♥❣✿ ❤✉♠❛♥2 ♦✈❡3✇❡✐❣❤( ❧♦✇✕♣3♦❜❛❜✐❧✐(② ❡✈❡♥(2✱
2✉❝❤ ❛2 ✇✐♥♥✐♥❣ ✐♥ ❛ ❧♦((❡3②✳ ❚❤✉2✱ ❤✉♠❛♥2 ♠❛② ❜❡ ✇✐❧❧✐♥❣ (♦ ♣❛3(✐❝✐♣❛(❡ ✐♥ ❛ ♣❡♥♥② ❛✉❝(✐♦♥
❡✈❡♥ ✐❢ (❤❡ ♦❞❞2 ✐♥ ❛ ❣✐✈❡♥ ❡Q✉✐❧✐❜3✐✉♠ ❛3❡ ✈❡3② ❧♦✇✳ ❍♦✇❡✈❡3✱ ❞✐♠✐♥✐2❤✐♥❣ ♠❛3❣✐♥❛❧ 2❡♥✲
2✐(✐✈✐(② ✕ ❛❦✐♥ (♦ ❛ ❞✐♠✐♥✐2❤✐♥❣ ♠❛3❣✐♥❛❧ ✉(✐❧✐(② ♦❢ ✇❡❛❧(❤ ✕ ❛♥❞ ❧♦22 ❛✈❡32✐♦♥ ✇♦3❦ ❛❣❛✐♥2(
❡①❝❡22✐✈❡ ❜✐❞❞✐♥❣ ✐♥ (❤❡ ❛✉❝(✐♦♥✳ ❯2✐♥❣ (❤❡ ❢✉♥❝(✐♦♥❛❧ ❢♦3♠2 ♦❢ ❚✈❡32❦② ❛♥❞ ❑❛❤♥❡♠❛♥
✭✶✾✾✷✮✱ ■ 2❤♦✇ (❤❛( ♣3♦2♣❡❝( (❤❡♦3② ♠❛② ✐♠♣❧② ❛ ✏ ❝✉( ♦✛ ✑ 2♦ (❤❛( ❛✉❝(✐♦♥2 ❢♦3 ✐(❡♠2 ❜❡❧♦✇
(❤❡ ❝✉(✲♦✛ 3❡(❛✐❧ ✈❛❧✉❡ ❛3❡ ✉♥♣3♦✜(❛❜❧❡✳ ▼♦3❡♦✈❡3✱ ■ ❡2(✐♠❛(❡ (❤❡ ♣3♦2♣❡❝( (❤❡♦3② ♠♦❞❡❧
✉2✐♥❣ ♠❛①✐♠✉♠ ❧✐❦❡❧✐❤♦♦❞✳ ■ 2❤♦✇ (❤❛( (❤❡ ♣❛3❛♠❡(❡32 ❛3❡ Q✉❛❧✐(❛(✐✈❡❧② ❛♥❞ Q✉❛♥(✐(❛(✐✈❡❧②
✐♥ ❧✐♥❡ ✇✐(❤ 3❡2✉❧(2 ❢3♦♠ ❡①♣❡3✐♠❡♥(❛❧ ❛♥❞ ♦❜2❡3✈❛(✐♦♥❛❧ 2(✉❞✐❡2✳
■( ❛♣♣❡❛32 (❤❛( (❤❡ ♠❛✐♥ ❛❧(❡3♥❛(✐✈❡ ❤②♣♦(❤❡2✐2 (♦ ♣3♦2♣❡❝( (❤❡♦3② ✐♥ (❤❡ ♣❡♥♥② ❛✉❝(✐♦♥
2❡((✐♥❣ ✐2 (❤❛( ❛❣❡♥(2 ❤❛✈❡ ❡①♣❡❝(❡❞ ✉(✐❧✐(② ❢✉♥❝(✐♦♥2✱ ❜✉( ❛3❡ 3✐2❦✕❧♦✈✐♥❣✳ %❧❛(( ❡( ❛❧✳ ✭✷✵✶✸✮
❛❞✈❛♥❝❡ (❤✐2 ❤②♣♦(❤❡2✐2 ✐♥ (❤❡ ❝♦♥(❡①( ♦❢ ♣❡♥♥② ❛✉❝(✐♦♥2✱ ❛♥❞ ❡2(✐♠❛(❡ (❤❡✐3 ♠♦❞❡❧ ♦♥ ❛
❞❛(❛2❡( 2✐♠✐❧❛3 (♦ ♦♥❡ ✉2❡❞ ✐♥ (❤❡ ♣3❡2❡♥( ♣❛♣❡3✳ ■ 2✐♠✐❧❛3❧② ❡2(✐♠❛(❡ (❤❡✐3 ♠♦❞❡❧ ♦♥ ♠②
❞❛(❛2❡(✱ ❛♥❞ ❝♦♠♣❛3❡ (❤❡ ♣3❡❞✐❝(2 Q✉❛❧✐(❛(✐✈❡❧② ❛♥❞ Q✉❛♥(✐(❛(✐✈❡❧② (♦ (❤❡ ♣3♦2♣❡❝( (❤❡♦3②
♠♦❞❡❧✳ ❙✐♥❝❡ (❤❡ 3✐2❦✕❧♦✈✐♥❣ ❛♥❞ ♣3♦2♣❡❝( (❤❡♦3② ♠♦❞❡❧2 ❛3❡ ♥♦( ♥❡2(❡❞✱ ♠♦❞❡❧ 2❡❧❡❝(✐♦♥
✐2 ♥♦( ❥✉2( ❛ 2(❛(✐2(✐❝❛❧ ❡①❡3❝✐2❡2✳ ▼② ❛♣♣3♦❛❝❤ ✐2 (❤✉2 (♦ ❝♦♠♣❛3❡ (❤❡ ♣3❡❞✐❝(✐♦♥2 ♦❢ ❜♦(❤
✶
❇✉" ♥♦" ♦♥❧②✿ (❡❡ ❚+❡♣❡❧ ❡" ❛❧✳ ✭✷✵✵✺✮ ❢♦+ ❛♥ ✐♥"❡+❡("✐♥❣ ♥❡✉+♦❡❝♦♥♦♠✐❝ ("✉❞②
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✸ ✻✺
♠♦❞❡❧' ❛❣❛✐♥', ,❤❡ ',②❧✐'❡❞ ❢❛❝,' ❛♥❞ ❛''❡'' ,❤❡✐1 ♦✉, ♦❢ '❛♠♣❧❡ ♣❡1❢♦1♠❛♥❝❡✳
❆ ♥✉♠❜❡1 ♦❢ 1❡❝❡♥, ❛♥❞ ❝❧♦'❡❧② 1❡❧❛,❡❞ ♣❛♣❡1' ✐♥✈❡',✐❣❛,❡ ♣❡♥♥② ❛✉❝,✐♦♥'✳ ❍✐♥♥♦'❛❛1
✭✷✵✶✵✮ ❞❡✈❡❧♦♣❡❞ ,❤❡ ,❤❡♦1② ♦❢ ♣❡♥♥② ❛✉❝,✐♦♥' ✐♥ ❛ 1✐'❦✕♥❡✉,1❛❧ '❡,,✐♥❣✱ ✇❤✐❝❤ ■ ❞✐'❝✉''
❜❡❧♦✇ ❛' ❛ ❜❡♥❝❤♠❛1❦✳ ❆✉❣❡♥❜❧✐❝❦ ✭✷✵✶✷✮ '✉❣❣❡',' ,❤❛, ❛ ♥❛✐✈❡ '✉♥❦ ❝♦', ❢❛❧❧❛❝② ♦♥ ,❤❡
'✐❞❡ ♦❢ ♣❡♥♥② ❛✉❝,✐♦♥ ♣❛1,✐❝✐♣❛♥,' ❝❛♥ ❡①♣❧❛✐♥ ,❤❡ ❤✐❣❤ 1❡✈❡♥✉❡❀ ,❤✐' ,❤❡♦1② '✐♠✐❧❛1❧② ❤❛'
,❤❡ ❧✐♠✐,❛,✐♦♥ ,❤❛, ✐, ♣1❡❞✐❝,' ❡①❝❡'' 1❡✈❡♥✉❡ ❢♦1 ❛❧❧ ❛✉❝,✐♦♥'✳ ❲❛♥❣ ❛♥❞ ❳✉ ✭✷✵✶✸✮ ✜♥❞ ,❤❛,
,❤❡ ♦✈❡1✇❤❡❧♠✐♥❣ ♥✉♠❜❡1 ♦❢ ♣❧❛②❡1' ❧♦'❡ ♠♦♥❡②✱ ❛' ♦♥❡ ✇♦✉❧❞ ❡①♣❡❝,✱ ❜✉, ❛❧'♦ ,❤❛, ,❤❡②
❧❡❛✈❡ ,❤❡ ♣❧❛,❢♦1♠ I✉✐❝❦❧②✳ ❚❤✐' ❣✐✈❡' '♦♠❡ '✉♣♣♦1, ,♦ ❜❡❤❛✈✐♦✉1❛❧ ❡①♣❧❛♥❛,✐♦♥'✱ ❛' ❛❣❡♥,'
❤❛✈❡ ❛♥ ✐♥❝❡♥,✐✈❡ ,♦ ❧❡❛✈❡ ✇❤❡♥ ,❤❡✐1 ♠✐'♣❡1❝❡♣,✐♦♥' ❜❡❝♦♠❡ ❡①♣♦'❡❞✳ ❇②❡1' ❡, ❛❧✳ ✭✷✵✶✵✮
❞✐'❝✉'' ✏❛'②♠♠❡,1✐❡'✑ ✐♥ ♣❡♥♥② ❛✉❝,✐♦♥'✱ ❛♥❞ '❤♦✇ ❤♦✇ ✕ ❢♦1 ❡①❛♠♣❧❡ ✕ ♠✐'♣❡1❝❡♣,✐♦♥' ♦❢
,❤❡ ♥✉♠❜❡1 ♦❢ ♣❧❛②❡1' ❝❛♥ ❧❡❛❞ ,♦ ❡①❝❡'' 1❡✈❡♥✉❡✳
❲✐♥♥❡1✕♣❛②' ♦♥❧✐♥❡ ❛✉❝,✐♦♥'✱ '✉❝❤ ❛' ❡❇❛② ❛1❡ ❜② ♥♦✇ ✇❡❧❧ ',✉❞✐❡❞ ✭'❡❡ ❖❝❦❡♥❢❡❧' ❡, ❛❧✳
✭✷✵✵✻✮ ❛' '✉1✈❡②✮✳ ❈❧♦'❡❧② 1❡❧❛,❡❞ ,♦ ,❤❡ ♣1❡'❡♥, ♣❛♣❡1 ✐' ▼❛❧♠❡♥❞✐❡1 ❛♥❞ ❙③❡✐❞❧ ✭✷✵✵✽✮✱ ✇❤♦
❞❡✈❡❧♦♣ ❛ ♠♦❞❡❧ ♦❢ ❜❡❤❛✈✐♦✉1❛❧ ❜✐❞❞❡1' ✐♥ ,❤❡ ❡❇❛② ❝♦♥,❡①,✳ ❚❤✐' ',✉❞② ❛❧'♦ '❡❡❦' ,♦ ❡①♣❧❛✐♥
❡①❝❡'' 1❡✈❡♥✉❡✱ ✇❤✐❝❤ ❛♠♦✉♥,' ,♦ ✽✪ ✐♥ ,❤❡ ❡',✐♠❛,❡' ♦❢ ▼❛❧♠❡♥❞✐❡1 ❛♥❞ ▲❡❡ ✭✷✵✶✶✮✱ ✐✳❡✳
❧❡'' ,❤❛♥ ♦♥❡✕'✐①,❤ ♦❢ ,❤❡ ❛✈❡1❛❣❡ ❢♦✉♥❞ ✐♥ ♣❡♥♥② ❛✉❝,✐♦♥'✳
❋✐♥❛❧❧②✱ ,❤❡ ♣❛♣❡1 ✐' 1❡❧❛,❡❞ ,♦ ♦,❤❡1 ♣1♦'♣❡❝, ,❤❡♦1② ✉'✐♥❣ ♦❜'❡1✈❛,✐♦♥❛❧ ❞❛,❛ ✭❈❛♠❡1❡1✱
✷✵✵✹✮✳ ●✉1❡✈✐❝❤ ❡, ❛❧✳ ✭✷✵✵✾✮ ✜♥❞' ❡✈✐❞❡♥❝❡ ❢♦1 ♣1♦❜❛❜✐❧✐,② ✇❡✐❣❤,✐♥❣ ❛♥❞ ❞✐♠✐♥✐'❤✐♥❣
♠❛1❣✐♥❛❧ '❡♥'✐,✐✈✐,② ✐♥ ❞❛,❛ ♦♥ ✜♥❛♥❝✐❛❧ ♦♣,✐♦♥'✳ ❏✉❧❧✐❡♥ ❛♥❞ ❙❛❧❛♥✐[ ✭✷✵✵✵✮ ❡',✐♠❛,❡ ❛
♣1♦'♣❡❝, ,❤❡♦1② ♠♦❞❡❧ ❢♦1 ❜❡,' ✐♥ ❤♦1'❡✲1❛❝❡'❀ 1❡❧❛,❡❞❧②✱ ❙♥♦✇❜❡1❣ ❛♥❞ ❲♦❧❢❡1' ✭✷✵✶✵✮ ✐♥✈❡'✲
,✐❣❛,❡ ,❤❡ ❤②♣♦,❤❡'✐' ♦❢ ♣1♦❜❛❜✐❧✐,② ♠✐'♣❡1❝❡♣,✐♦♥✱ ❛❧'♦ ✐♥ ,❤❡ ❤♦1'❡ 1❛❝❡ ❝♦♥,❡①,✳ ❈♦♠♣❛1❡❞
,♦ ,❤❡'❡ ',✉❞✐❡'✱ ✇❡ ✜♥❞ ❡✈✐❞❡♥❝❡ ♦❢ ',1♦♥❣❡1 ♣1♦❜❛❜✐❧✐,② ✇❡✐❣❤,✐♥❣ ❜✐❛'❡'✳ ❚❤✐' ♠❛② ✇❡❧❧
❛1✐'❡ ❜❡❝❛✉'❡✱ ✉♥❧✐❦❡ ✐♥ ,❤❡ ♠❛1❦❡,' ',✉❞✐❡❞ ❜② ,❤❡ ♣1❡✈✐♦✉' ♣❛♣❡1'✱ ♣❡♥♥② ❛✉❝,✐♦♥' ❞♦ ♥♦,
♣1♦✈✐❞❡ ❛ 1❛,✐♦♥❛❧ ❛❣❡♥, ✇✐,❤ ❛♥ ♦♣♣♦1,✉♥✐,② ,♦ ✏❜❡, ❛❣❛✐♥',✑ ,❤❡ ♠❛1❦❡, ♦,❤❡1 ,❤❛♥ ❜②
❛❜',❛✐♥✐♥❣ ❢1♦♠ ,❤❡ ❛✉❝,✐♦♥✳
❚❤❡ ♣❛♣❡1 ♣1♦❝❡❡❞' ❛' ❢♦❧❧♦✇'✳ ❙❡❝,✐♦♥ ✸✳✷ ♣1❡'❡♥,' ,❤❡ ❞❛,❛'❡, ❛♥❞ ❞❡✈❡❧♦♣' ,❤❡ ❝1✉❝✐❛❧
',②❧✐'❡❞ ❢❛❝,' ❢♦1 ,❤❡♦1② ,♦ ❛❞❞1❡''✳ ❙❡❝,✐♦♥ ✸✳✸ ,❤❡♥ ♣1❡'❡♥,' ,❤❡ ❡①♣❡❝,❡❞ ✉,✐❧✐,② ♠♦❞❡❧
♦❢ ♣❡♥♥② ❛✉❝,✐♦♥'✱ ❝♦♥'✐❞❡1✐♥❣ ,❤❡ 1✐'❦✕♥❡✉,1❛❧ ❛♥❞ 1✐'❦✕❧♦✈✐♥❣ ❝❛'❡'✳ ❚❤❡♥✱ '❡❝,✐♦♥ ✸✳✹
❞❡✈❡❧♦♣' ,❤❡ ❛❧,❡1♥❛,✐✈❡ ♠♦❞❡❧✱ ✇❤✐❝❤ ✐' ❜❛'❡❞ ♦♥ ♣1♦'♣❡❝, ,❤❡♦1②✳ ❊',✐♠❛,✐♦♥ ✐' ❞✐'❝✉''❡❞
✐♥ '❡❝,✐♦♥ ✸✳✺✳ ❙❡❝,✐♦♥ ✸✳✻ ♣1❡'❡♥,' ,❤❡ ❡',✐♠❛,✐♦♥ 1❡'✉❧,'✱ ❢♦❧❧♦✇❡❞ ❜② ✸✳✼✱ ✇❤✐❝❤ ❝♦♠♣❛1❡'
♣1❡❞✐❝,✐♦♥' ♦❢ ,❤❡ ♠♦❞❡❧' ,♦ ,❤❡ ',②❧✐'❡❞ ❢❛❝,'✳ ❙❡❝,✐♦♥ ✸✳✽ ❝♦♥❝❧✉❞❡'✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✻✻ ❖❢ "❡♥♥✐❡& ❛♥❞ ")♦&♣❡❝-&✿ ❯♥❞❡)&-❛♥❞✐♥❣ ❇❡❤❛✈✐♦✉) ✐♥ "❡♥♥② ❆✉❝-✐♦♥&
❱❛#✐❛❜❧❡ ❯♥✐* ❉❡,❝#✐♣*✐♦♥
#❡*❛✐❧❴♣#✐❝❡ ●❇3 ❘❡*❛✐❧ ♣#✐❝❡ ♦❢ *❤❡ ♣#♦❞✉❝*✱ ❛, :✉♦*❡❞ ❜② ❙✇♦♦♣♦
✐♠♣✉*❡❞❴#❡✈❡♥✉❡ ●❇3 ❘❡✈❡♥✉❡✱ ❝❛❧❝✉❧❛*❡❞ ❢#♦♠ ✜♥❛❧ ♣#✐❝❡
♠❛#❣✐♥ ✕ ❘❛*✐♦ ♦❢ #❡✈❡♥✉❡ *♦ #❡*❛✐❧ ♣#✐❝❡
✇✐♥♥❡#❴,❛✈✐♥❣,❴♣❝♥* ✪ ❲✐♥♥✐♥❣ ❜✐❞❞❡#✬, ,❛✈✐♥❣, #❡❧❛*✐✈❡ *♦ #❡*❛✐❧ ♣#✐❝❡
✢❛❣❴❡♥❞♣#✐❝❡ ❉✉♠♠② ✶ ✐❢ ❛✉❝*✐♦♥ ✇❛, ✐♥ ✏✜♥❛❧ ♣#✐❝❡ ♦✛✑ ❢♦#♠❛*
✢❛❣❴♦♥❡❝❡♥* ❉✉♠♠② ✶ ✐❢ ♣#✐❝❡ ✐♥❝#❡♠❡♥* ✇❛, ●❇3 ✵✳✵✶
✢❛❣❴✺❝❡♥*, ❉✉♠♠② ✶ ✐❢ ♣#✐❝❡ ✐♥❝#❡♠❡♥* ✇❛, ●❇3 ✵✳✵✺
✢❛❣❴✷✵❝❡♥*, ❉✉♠♠② ✶ ✐❢ ♣#✐❝❡ ✐♥❝#❡♠❡♥* ✇❛, ●❇3 ✵✳✷✵
❋✐❣✉#❡ ✸✳✶✿ ❱❛#✐❛❜❧❡,
✸✳✷ ❉❛%❛ ❛♥❞ ❙%②❧✐,❡❞ ❋❛❝%,
❚❤❡ ♣#❡,❡♥* ,*✉❞② ✐, ❜❛,❡❞ ♦♥ ❛ ❞❛*❛,❡* ♦❢ ♠♦#❡ *❤❛♥ ✷✺✵✵✵ ❛✉❝*✐♦♥,✳ ❆❧❧ ♦❢ *❤❡,❡ ❛✉❝*✐♦♥,
✇❡#❡ ❝♦♥❞✉❝*❡❞ ♦♥ *❤❡ ❇#✐*✐,❤ ✇❡❜,✐*❡ ♦❢ ❙✇♦♦♣♦ ❤!!♣✿✴✴✇✇✇✳'✇♦♦♣♦✳❝♦✳✉❦ ✭❡❛#❧✐❡# ❦♥♦✇♥
❛, !❡❧❡❜✐❞✳❝♦✳✉❦✮✳ ❚❤❡ ❞❛*❛,❡* ✇❛, ❝♦❧❧❡❝*✐♦♥ ✉,✐♥❣ ❛♥ ❛✉*♦♠❛*❡❞ ✏,♣✐❞❡#✑ ♣#♦❣#❛♠✱ ✇❤✐❝❤
❞♦✇♥❧♦❛❞❡❞ *❤❡ ❞❛*❛ ❢#♦♠ *❤❡ ❝♦♠♣❧❡*❡❞ ❛✉❝*✐♦♥ ♣❛❣❡ ♦❢ *❤❡ ✇❡❜ ,✐*❡✱ ❛♥❞ ,♣❛♥, ❛✉❝*✐♦♥,
#✉♥♥✐♥❣ ❢#♦♠ ▼❛② ✷✵✵✽ *❤#♦✉❣❤ ❉❡❝❡♠❜❡# ✷✵✵✾✳ ■♥ ❝♦♥,*#✉❝*✐♥❣ *❤❡ ❞❛*❛,❡*✱ ✇❡ ,❡❧❡❝*❡❞
❛✉❝*✐♦♥, ❢♦# ♣#♦❞✉❝*, *❤❛* ✇❡#❡ ,♦❧❞ ❛* ❧❡❛,* ✺✵✵ *✐♠❡, ❞✉#✐♥❣ *❤❡ ,❛♠♣❧❡ ♣❡#✐♦❞❀ *❤✐, ②✐❡❧❞,
❛ #✐❝❤ ♣❛♥❡❧ ✐♥ ✇❤✐❝❤ ✇❡ ♦❜,❡#✈❡ ♥♦* ♦♥❧② ✈❛#✐❛*✐♦♥ ❜❡*✇❡❡♥ ❞✐✛❡#❡♥* ✐*❡♠,✱ ❜✉* ❛❧,♦ ❝♦♥✲
,✐❞❡#❛❜❧❡ ✈❛#✐❛*✐♦♥ ✇✐*❤✐♥ ❛✉❝*✐♦♥, ❢♦# *❤❡ ,❛♠❡ ♣#♦❞✉❝* ✕ ♦♥ ❛✈❡#❛❣❡✱ ❡❛❝❤ ♣#♦❞✉❝* ✐♥ *❤❡
,❛♠♣❧❡ ✇❛, ,♦❧❞ ✶✸✼✵ *✐♠❡,✳ ❋✐❣✉#❡ ✸✳✶ ❞❡,❝#✐❜❡, *❤❡ ✈❛#✐❛❜❧❡, ♦❢ *❤❡ ❞❛*❛,❡*✱ ❛♥❞ ✜❣✉#❡ ✸✳✷
♣#♦✈✐❞❡, ❞❡,❝#✐♣*✐✈❡ ,*❛*✐,*✐❝, ♦❢ *❤❡ ,❛♠♣❧❡✳
❍✐❣❤ ❘❡✈❡♥✉❡✿ ❚❤❡ ♠♦,* ,*#✐❦✐♥❣ ♦❜,❡#✈❛*✐♦♥ ❢#♦♠ ✜❣✉#❡ ✸✳✷ ✐, *❤❛*✱ ♦♥ ❛✈❡#❛❣❡✱ ❙✇♦♦♣♦
♠❛❦❡, ❛ #❡✈❡♥✉❡ ♠♦#❡ *❤❛♥ ●❇3 ✸✵✵ ♣❡# ❛✉❝*✐♦♥ ❢♦# ♣#♦❞✉❝*, ✇♦#*❤ ❛ ♠❡❛♥ #❡*❛✐❧ ♣#✐❝❡ ♦❢
♦♥❧② ●❇3 ✶✼✺✳✶✺✳ ❚❤✉, ❛* ❧❡❛,* ♦♥ *❤❡ ,✉#❢❛❝❡✱ ✐* ❛♣♣❡❛#, *❤❛* ♣❡♥♥② ❛✉❝*✐♦♥, ❛#❡ ✐♥ ♣#❛❝*✐❝❡
❛ ♣#♦✜*❛❜❧❡ ♠❡❝❤❛♥✐,♠ ❢♦# *❤❡ ,❡❧❧❡#✿ *❤❡ ❛✈❡#❛❣❡ ♠❛#❣✐♥ ✭❞❡✜♥❡❞ ❛, #❛*✐♦ ♦❢ #❡✈❡♥✉❡ ♦✈❡#
#❡*❛✐❧ ♣#✐❝❡✮ ✐, ✶✳✹✼✱ ✐♥❞✐❝❛*✐♥❣ *❤❛* ✐♥ ❛ *②♣✐❝❛❧ ♣❡♥♥② ❛✉❝*✐♦♥✱ *❤❡ ,❡❧❧❡#✬, #❡✈❡♥✉❡ ✐, ♥❡❛#❧②
✺✵✪ ❤✐❣❤❡# *❤❛♥ *❤❡ #❡*❛✐❧ ♣#✐❝❡ ♦❢ *❤❡ ♦❜❥❡❝*✳ ❍♦✇❡✈❡#✱ ♣❡♥♥② ❛✉❝*✐♦♥, ❛#❡ ❛❧,♦ #✐,❦② ❢♦#
*❤❡ ,❡❧❧❡#✿ *❤❡ ❝♦❡✣❝✐❡♥* ♦❢ ✈❛#✐❛*✐♦♥✱ ❞❡✜♥❡❞ ❛, *❤❡ #❛*✐♦ ♦❢ ,*❛♥❞❛#❞ ❞❡✈✐❛*✐♦♥ *♦ ♠❡❛♥,✱ ✐♥
#❡✈❡♥✉❡ ✐, ✷✳✵✷✱ ❝♦♠♣❛#❡❞ *♦ ✶✳✵✸ ❢♦# *❤❡ #❡*❛✐❧ ♣#✐❝❡✳ ❚❤❡ ♠❡❞✐❛♥ ❛✉❝*✐♦♥ ②✐❡❧❞, ❛♥ ❡①❝❡,,
#❡✈❡♥✉❡ ♦❢ ✷✸✪✳
❚❤❡ ❤✐❣❤ ❡①♣❡❝*❡❞ #❡✈❡♥✉❡ ❤❛, ❛**#❛❝*❡❞ ❝♦♥,✐❞❡#❛❜❧❡ #❡,❡❛#❝❤ ✐♥*❡#❡,*✱ ❛♥❞ *❤✉, #❡❝❡✐✈❡,
♣#✐❞❡ ♦❢ ♣❧❛❝❡ ❛, *❤❡ ✜#,* ,*②❧✐,❡❞ ❢❛❝*✿
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✸ ✻✼
❱❛$✐❛❜❧❡ ▼❡❛♥ ▼❡❞✐❛♥ ◆✳❖❜/✳ ❙1❞✳❉❡✈
$❡1❛✐❧❴♣$✐❝❡ ✶✼✺✳✶✺✹✸ ✾✹✾ ✷✺✾✶✾ ✶✽✶✳✹✹
✐♠♣✉1❡❞❴$❡✈❡♥✉❡ ✸✵✽✳✵✹✸✸ ✶✹✵✳✺✵✵✵ ✷✺✾✶✾ ✻✷✹✳✺✷
♠❛$❣✐♥ ✶✳✹✼✹✼ ✶✳✷✸✾✵ ✷✺✾✶✾ ✶✳✷✷
✐♠♣✉1❡❞❴❜✐❞/ ✻✶✹✳✼✶✺✾ ✷✼✾✳✵✵✵✵ ✷✺✾✶✾ ✶✷✹✾✳✵✹
✇✐♥♥❡$❴/❛✈✐♥❣/❴♣❝♥1 ✺✺✳✻✼✸✼ ✻✶✳✵✵✵✵ ✷✺✾✶✾ ✷✾✳✻✺
✢❛❣❴❡♥❞♣$✐❝❡ ✵✳✵✹✺✷ ✵✳✵✵✵✵ ✷✺✾✶✾ ✵✳✷✶
✢❛❣❴♦♥❡❝❡♥1 ✵✳✵✽✶✸ ✵✳✵✵✵✵ ✷✺✾✶✾ ✵✳✷✼
✢❛❣❴✷❝❡♥1/ ✵✳✵✶✸✻ ✵✳✵✵✵✵ ✷✺✾✶✾ ✵✳✶✷
✢❛❣❴✺❝❡♥1/ ✵✳✵✵✼✵ ✵✳✵✵✵✵ ✷✺✾✶✾ ✵✳✵✽
✢❛❣❴✷✵❝❡♥1/ ✵✳✵✵✵✹ ✵✳✵✵✵✵ ✷✺✾✶✾ ✵✳✵✷
❋✐❣✉$❡ ✸✳✷✿ ❉❡/❝$✐♣1✐✈❡ ❙1❛1✐/1✐❝/
❙!②❧✐%❡❞ ❋❛❝! ✶✳ ❖♥ ❛✈❡%❛❣❡✱ ♣❡♥♥② ❛✉❝,✐♦♥ %❡✈❡♥✉❡ ✐/ ❛♣♣%♦①✐♠❛,❡❧② ✺✵✪ ❤✐❣❤❡% ,❤❛♥ ,❤❡
✈❛❧✉❡ ♦❢ ,❤❡ ♦❜❥❡❝, ❜❡✐♥❣ /♦❧❞ ♦♥ ❛✈❡%❛❣❡
❆❢1❡$ 1❛❦✐♥❣ ✐♥1♦ ❛❝❝♦✉♥1 ❜✐❞❞✐♥❣ ❢❡❡/✱ 1❤❡ ✇✐♥♥✐♥❣ ❜✐❞❞❡$ ✏/❛✈❡/ ✑❛♣♣$♦①✐♠❛1❡❧② ✺✺✪ ♦❢
1❤❡ ✈❛❧✉❡ ♦❢ 1❤❡ ❣♦♦❞✳ ❙✐♥❝❡ ❛✈❡$❛❣❡ $❡✈❡♥✉❡ ✐/ ❝❧♦/❡ 1♦ ✶✺✵✪ ♦❢ 1❤❡ ✈❛❧✉❡✱ 1❤✐/ ♠❡❛♥/ 1❤❛1
❧♦/✐♥❣ ❜✐❞❞❡$/ ❛❝❝♦✉♥1 ❢♦$ 1❤❡ ❧✐♦♥✬/ /❤❛$❡ ♦❢ $❡✈❡♥✉❡✿ ❝♦♠❜✐♥❡❞✱ 1❤❡ ❧♦/❡$/ ♣❛② ♠♦$❡ 1❤❛♥
✶✵✵✪ ♦❢ 1❤❡ ✈❛❧✉❡ ♦❢ 1❤❡ ❣♦♦❞✳ ❇❡❝❛✉/❡ 1❤❡ ❜✐❞❞✐♥❣ ❢❡❡ ✐/ /♠❛❧❧ ❝♦♠♣❛$❡❞ 1♦ 1❤❡ ✈❛❧✉❡ ♦❢
1❤❡ ❣♦♦❞✱ ❛✉❝1✐♦♥/ ♠✉/1 $❡❝❡✐✈❡ ♠❛♥② ❜✐❞/ ♦♥ ❛✈❡$❛❣❡✳ ❚❤✐/ ✐/ ❝❧❡❛$❧② 1❤❡ ❝❛/❡✿ 1❤❡ 1②♣✐❝❛❧
❛✉❝1✐♦♥/ $❡❝❡✐✈❡/ ♠♦$❡ 1❤❛♥ ✻✶✹ ❜✐❞/✦ ❚❤❡/❡ ♦❜/❡$✈❛1✐♦♥/ ❝❧❡❛$❧② /❤♦✇ 1❤❡ ❧♦11❡$②✕❧✐❦❡ ♥❛1✉$❡
♦❢ 1❤❡ ♣❡♥♥② ❛✉❝1✐♦♥✳ ■♥ ❝♦♥1$❛/1✱ /1❛♥❞❛$❞ ❛✉❝1✐♦♥/✱ /✉❝❤ ❛/ ❋✐$/1 ♦$ ❙❡❝♦♥❞ W$✐❝❡✱ 1②♣✐❝❛❧❧②
②✐❡❧❞ ❛ /♠❛❧❧ /✉$♣❧✉/ ❢♦$ 1❤❡ ✇✐♥♥✐♥❣ ❜✐❞❞❡$ ❛♥❞ ③❡$♦ ❢♦$ ❛❧❧ ♦1❤❡$/✳
;%♦❞✉❝,/ ❜❡✐♥❣ /♦❧❞✿ ■♥ ❝♦♥1$❛/1 1♦ ♠♦$❡ ❡/1❛❜❧✐/❤❡❞ ♦♥❧✐♥❡ ❛✉❝1✐♦♥ ♣❧❛1❢♦$♠/✱ ❙✇♦♦♣♦ ❞✐❞
♥♦1 /❡❧❧ ✉/❡❞ ♦$ $❛$❡ ✐1❡♠/✳ ❚❤❡ /❛♠♣❧❡ ❝♦♥1❛✐♥/ ✷✺ ♣$♦❞✉❝1/✳ ❊①❝❡♣1 ❢♦$ ❛ ●❇W ✹✵ ❝❛/❤
$❡✇❛$❞✱ ❛❧❧ ♣$♦❞✉❝1/ ❛$❡ ❝♦♥/✉♠❡$ ❡❧❡❝1$♦♥✐❝/ 1❤❛1 ❛$❡ $❡❛❞✐❧② ❛✈❛✐❧❛❜❧❡ ❢$♦♠ ♦♥❧✐♥❡ $❡1❛✐❧✲
❡$/ ♦$ ❧♦❝❛❧ /1♦$❡/✳ ❋✉$1❤❡$♠♦$❡✱ ❛❧❧ ♣$♦❞✉❝1/ ✇❡$❡ /♦❧❞ ❜② ❙✇♦♦♣♦ 1❤❡♠/❡❧✈❡/✱ $❛1❤❡$ 1❤❛♥
1❤$♦✉❣❤ 1❤✐$❞✕♣❛$1② /❡❧❧❡$/✳ ❲❤✐❧❡ /1✉❞✐❡/ ♦❢ ❡❇❛②✱ ❢♦$ ❡①❛♠♣❧❡✱ ❛$❡ ❝♦♠♣❧✐❝❛1❡❞ ❜② 1❤❡ ❢❛❝1
1❤❛1 ❜✐❞❞✐♥❣ ❜❡❤❛✈✐♦✉$ ❞❡♣❡♥❞/ ♥♦1 ♦♥❧② ♦♥ 1❤❡ 1②♣❡ ♦❢ ♣$♦❞✉❝1 ❜✉1 ❛❧/♦ 1❤❡ $❡♣✉1❛1✐♦♥
$❛1✐♥❣ ♦❢ ❛ /❡❧❧❡$
✷
✱ 1❤❡/❡ ✐//✉❡/ ❞♦ ♥♦1 ❛$✐/❡ ✐♥ 1❤❡ ♣$❡/❡♥1 ❞❛1❛/❡1✳
❘❡❣%❡//✐♦♥ ❆♥❛❧②/✐/✿ ●✐✈❡♥ 1❤❡ ❧❛$❣❡ ♥✉♠❜❡$ ♦❢ ♦❜/❡$✈❛1✐♦♥/✱ ✐/ ✐♥/1$✉❝1✐✈❡ 1♦ /❡1 ✉♣ ❛
$❡❣$❡//✐♦♥ ♠♦❞❡❧ 1♦ ✉♥❞❡$/1❛♥❞ ❦❡② ❢❡❛1✉$❡/ ♦❢ 1❤❡ ❞❛1❛/❡1✳ ❙✐♥❝❡ 1❤❡ ❦❡② ♦✉1❝♦♠❡ ♦❢ ✐♥1❡$❡/1
✷
❙❡❡✱ ❡✳❣✳✱ ❘❡&♥✐❝❦ ❡+ ❛❧✳ ✭✷✵✵✻✮ ❢♦5 ❛♥ ✐♥+❡5❡&+✐♥❣ ❝♦♥+5♦❧❧❡❞ ❡①♣❡5✐♠❡♥+
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✻✽ ❖❢ "❡♥♥✐❡& ❛♥❞ ")♦&♣❡❝-&✿ ❯♥❞❡)&-❛♥❞✐♥❣ ❇❡❤❛✈✐♦✉) ✐♥ "❡♥♥② ❆✉❝-✐♦♥&
▼♦❞❡❧ ✭✶✮ ✭✷✮
✭■♥-❡.❝❡♣-✮ −0.11∗∗ −0.13∗∗✭✵✳✵✹✮ ✭✵✳✵✹✮
❧♦❣✭.❡-❛✐❧❴♣.✐❝❡✮ 0.33∗∗∗ 0.33∗∗∗
✭✵✳✵✶✮ ✭✵✳✵✶✮
✢❛❣❴✷✵❝❡♥-9 ✵✳✸✵
✭✵✳✸✼✮
✢❛❣❴✺❝❡♥-9 0.15†
✭✵✳✵✾✮
✢❛❣❴♦♥❡❝❡♥- 0.15∗∗∗ 0.15∗∗∗
✭✵✳✵✸✮ ✭✵✳✵✸✮
✢❛❣❴❡♥❞♣.✐❝❡ 0.81∗∗∗ 0.81∗∗∗
✭✵✳✵✹✮ ✭✵✳✵✹✮
◆ ✷✺✾✶✾ ✷✺✾✶✾
R2✵✳✵✽ ✵✳✵✽
❙!❛♥❞❛%❞ ❡%%♦%( ✐♥ ♣❛%❡♥!❤❡(❡(
†(✐❣♥✐✜❝❛♥! ❛! p < .10❀ ∗p < .05❀ ∗∗p < .01❀ ∗∗∗p < .001
❋✐❣✉.❡ ✸✳✸✿ ❘❡❣.❡99✐♦♥ ❘❡9✉❧-9
✐9 -❤❡ ♣.♦✜-❛❜✐❧✐-② ✕ ♦. ❧❛❝❦ -❤❡.❡♦❢ ✕ ♦❢ ❛ ♣❡♥♥② ❛✉❝-✐♦♥✱ -❤❡ ❢♦❧❧♦✇✐♥❣ ♠♦❞❡❧ ✐9 ♥❛-✉.❛❧✿
margini = f(retail❴pricei, Xi) + ǫi ✭✸✳✷✳✶✮
✇❤❡.❡ i ❞❡♥♦-❡9 -❤❡ ✐♥❞❡① ♦❢ -❤❡ ♦❜9❡.✈❛-✐♦♥✱ margin ❛♥❞ retailprice ❛.❡ ❛9 ❞❡✜♥❡❞ ❛❜♦✈❡✱
❛♥❞ Xi ✐9 ❛ ✈❡❝-♦. ♦❢ ❛✉❝-✐♦♥ ❝❤❛.❛❝-❡.✐9-✐❝9✳ ●✐✈❡♥ -❤❡ 9❛♠♣❧❡ ❛- ❤❛♥❞✱ -❤✐9 ♠❡❛♥9 -❤❛- Xi
❝♦♥-❛✐♥9 ❞✉♠♠② ✈❛.✐❛❜❧❡9 ✐♥❞✐❝❛-✐♥❣ -❤❡ ♣.✐❝❡ ✐♥❝.❡♠❡♥- ✉9❡❞ ✐♥ ❛ ❣✐✈❡♥ ❛✉❝-✐♦♥✳ ❇❛9❡❞ ♦♥
9-❛-✐9-✐❝❛❧ ✜-✱ -❤❡ ❢♦❧❧♦✇✐♥❣ ❢✉♥❝-✐♦♥❛❧ ❢♦.♠ ✇❛9 ❝❤♦9❡♥✿
margini = β0 + β1log(retail❴pricei) + β2flag❴20centsi ✭✸✳✷✳✷✮
+ β3flag❴5centsi + β4flag❴onecenti
+ β5flag❴endprice+ ǫi
❚❤❡ ♠♦❞❡❧ ✇❛9 ❡9-✐♠❛-❡❞ ❜② ❖▲❙❀ .❡9✉❧-9 ❛.❡ .❡♣♦.-❡❞ ✐♥ ✜❣✉.❡ ✸✳✸✳ ▼♦❞❡❧ ✭✶✮ ♣.❡9❡♥-9
.❡9✉❧-9 ❢♦. -❤❡ ❢✉❧❧ ♠♦❞❡❧❀ ❛❢-❡. ✏-❡9-✐♥❣ ❞♦✇♥✑ -♦ ❞.♦♣ ✐♥9✐❣♥✐✜❝❛♥- ✈❛.✐❛❜❧❡9✱ -❤❡ ♣.❡❢❡..❡❞
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✸ ✻✾
❡#✉❛&✐♦♥ ✭✷✮ -❡.✉❧&.✳ ❆& ✇✐&❤ ❛♥ R2♦❢ ✽✪✱ ❢♦- ❜♦&❤ ♠♦❞❡❧.✱ ✐& ✐. ❝❧❡❛- &❤❛& ❝♦♥.✐❞❡-❛❜❧❡
✈❛-✐❛&✐♦♥ -❡♠❛✐♥. ✉♥❡①♣❧❛✐♥❡❞ ❜② &❤❡ ♠♦❞❡❧❀ &❤✐. ✐. ❛. ♦♥❡ ✇♦✉❧❞ ❡①♣❡❝&✱ .✐♥❝❡ &❤❡♦-❡&✐❝❛❧
❝♦♥.✐❞❡-❛&✐♦♥. ♣♦✐♥& &♦ ❝♦♥.✐❞❡-❛❜❧❡ -❛♥❞♦♠♥❡..✱ ❣✐✈❡♥ ♦❜.❡-✈❛❜❧❡.✱ ✐♥ &❤❡ ♦✉&❝♦♠❡. ♦❢ ❡❛❝❤
❛✉❝&✐♦♥✳ ▼♦-❡ ✐♠♣♦-&❛♥&❧②✱ &❤❡ ❝♦❡✣❝✐❡♥&. ❛-❡ ✈❡-② ♣-❡❝✐.❡❧② ❡.&✐♠❛&❡❞❀ ✐♥ ♠♦❞❡❧ ✭✷✮✱ ❛❧❧
❝♦❡✣❝✐❡♥&. ❛-❡ .✐❣♥✐✜❝❛♥& ❛& &❤❡ ✶✪ ❧❡✈❡❧✳
❱❛"✐❛$✐♦♥ ❜② ❘❡$❛✐❧ ,"✐❝❡✿ ❆& &❤❡ ❤✐❣❤✕♣-✐❝❡ ❡♥❞ ♦❢ &❤❡ ♣-♦❞✉❝& .♣❡❝&-✉♠✱ ❙✇♦♦♣♦ .♦❧❞
.❡♠✐✕♣-♦❢❡..✐♦♥❛❧ ❝❛♠❡-❛.❀ ❢♦- ❡①❛♠♣❧❡✱ ♠♦-❡ &❤❛♥ ✶✶✵✵ ❛✉❝&✐♦♥. ❛-❡ -❡❝♦-❞❡❞ ❢♦- &❤❡ ◆✐❦♦♥
❉✾✵ ❝❛♠❡-❛✱ ✇✐&❤ -❡&❛✐❧ ♣-✐❝❡ #✉♦&❡❞ ❛& ●❇N ✼✾✶✳✹✾✱ ❛♥❞ ②✐❡❧❞✐♥❣ ❛♥ ❛✈❡-❛❣❡ -❡✈❡♥✉❡ ♦❢ ●❇N
✶✾✾✺✳✻✵✳ ■♥ &❤❡ ♠✐❞✕-❛♥❣❡✱ ♦♥❡ ✜♥❞. ❣❛♠❡ ❝♦♥.♦❧❡. ❧✐❦❡ &❤❡ ◆✐♥$❡♥❞♦ ❉❙ ❛♥❞ ,❧❛②3$❛$✐♦♥
✸✱ ✇✐&❤ -❡&❛✐❧ ♣-✐❝❡. ❜❡&✇❡❡♥ ●❇N ✾✾✳✾✾ ❛♥❞ ●❇N ✷✾✾✳✷✸✳ ❚❤❡.❡ ❛✉❝&✐♦♥. ❛❧.♦ &❡♥❞❡❞ &♦ ❜❡
-❛&❤❡- ♣-♦✜&❛❜❧❡✱ ✇✐&❤ -❡✈❡♥✉❡. ❛-♦✉♥❞ ✺✵✪ ❤✐❣❤❡- &❤❛♥ &❤❡ ✈❛❧✉❡. ♦❢ &❤❡ ♦❜❥❡❝&✳
❆✉❝&✐♦♥. ❢♦- ❧♦✇❡-✕♣-✐❝❡❞ ♣-♦❞✉❝&. &❡♥❞❡❞ &♦ ❢❛✐❧ &♦ .❤♦✇ -❡.✉❧&. ✐♥ &❤❡ ❛✉❝&✐♦♥✱ ✇✐&❤
❛✈❡-❛❣❡ -❡✈❡♥✉❡. ♦❢&❡♥ ❢❛❧❧✐♥❣ .❤♦-& ♦❢ &❤❡ -❡&❛✐❧ ✈❛❧✉❡✳ ❋♦- ❡①❛♠♣❧❡✱ ✐♥ ✻✹✽ ❛✉❝&✐♦♥. ❢♦- ❛
❑✐♥❣3$♦♥ ▼✐❝"♦ ❙❉ -❡❛❞❡- ✇✐&❤ -❡&❛✐❧ ♣-✐❝❡ ●❇N ✶✾✳✾✾✱ -❡✈❡♥✉❡ ♦♥ ❛✈❡-❛❣❡ -❡❛❝❤❡❞ ♦♥❧②
●❇N ✺✳✻✾✳ ❚❤❡ ❋"❡❡❝♦♠ ❉❛$❛❜❛" ✶✻●❇ ❛❝❤✐❡✈❡❞ ❛✈❡-❛❣❡ -❡✈❡♥✉❡ ♦❢ ●❇N ✷✹✳✸✹✱ ❜❛-❡❧②
❡①❝❡❡❞✐♥❣ &❤❡ -❡&❛✐❧ ♣-✐❝❡ ♦❢ ●❇N ✷✸✳✵✽ ✐♥ ✻✸✸ ❛✉❝&✐♦♥.✳
❚❤❡ ❧♦✇✱ ✐♥❞❡❡❞ ♥❡❣❛&✐✈❡✱ ♣-♦✜& ♠❛-❣✐♥ ❢♦- ❧♦✇✕✈❛❧✉❡ ❣♦♦❞. ✐. ❝♦♥✜-♠❡❞ ❜② -❡❣-❡..✐♦♥
❛♥❛❧②.✐.✳ ❋♦- ❛ ✶✵♣ ❛✉❝&✐♦♥✱ ❢♦- ❡①❛♠♣❧❡✱ &❤❡ ♠♦❞❡❧ ♣-❡❞✐❝&. ❛ ♠❛-❣✐♥ ❧❡.. &❤❛♥ ♦♥❡ ❢♦-
♣-♦❞✉❝&. ✇✐&❤ ❛ -❡&❛✐❧ ♣-✐❝❡ ❧❡.. &❤❛♥ ●❇N ✷✽✳✽✾✳ ●❡♥❡-❛❧❧②✱ ❛ ♦♥❡✕♣❡-❝❡♥& ✐♥❝-❡❛.❡ ✐♥ -❡&❛✐❧
♣-✐❝❡ ✐. ❛..♦❝✐❛&❡❞ ✇✐&❤ ❛ ✵✳✸✸ ✐♥❝-❡❛.❡ ✐♥ &❤❡ ♣-♦✜& ♠❛-❣✐♥❀ &❤✉.✱ ❛. ❡①♣❡❝&❡❞ ❢-♦♠ &❤❡
♣-✐♦- ❞✐.❝✉..✐♦♥✱ ❤✐❣❤✕✈❛❧✉❡ ❣♦♦❞. ❛-❡ ✐♥❞❡❡❞ ♣-❡❞✐❝&❡❞ &♦ ❤❛✈❡ ❤✐❣❤ ♣-♦✜& ♠❛-❣✐♥✱ ♥♦& ❥✉.&
❤✐❣❤ ❛❜.♦❧✉&❡ ❡①❝❡.. -❡✈❡♥✉❡ ♦✈❡- &❤❡ -❡&❛✐❧ ♣-✐❝❡✳ ❋✐❣✉-❡ ✸✳✹ ♣❧♦&. &❤❡ ♣-❡❞✐❝&❡❞ ♠❛-❣✐♥✱ ❛.
❝♦♠♣❛-❡❞ &♦ &❤❡ ✏③❡-♦✕♣-♦✜& ✑ ❝❛.❡ ♦❢ ❛ ✉♥✐& ♠❛-❣✐♥ ❢♦- &❤❡ ❝❛.❡ ♦❢ ❛ ✶✵♣ ❛✉❝&✐♦♥✳
▼♦-❡♦✈❡-✱ ♣❡-❤❛♣. .✉-♣-✐.✐♥❣❧②✱ &❤✐. ❢❛❝& ❛♣♣❡❛-. &♦ ❜❡ ❤❛✈❡ ❜❡❡♥ ♦✈❡-❧♦♦❦❡❞ ✐♥ &❤❡
❧✐&❡-❛&✉-❡ ♦♥ ♣❡♥♥② ❛✉❝&✐♦♥. .♦ ❢❛-✳ ❚❤✉. ✐& ✐. ❛♥ ✐♠♣♦-&❛♥& ❝❤❛❧❧❡♥❣❡ ❢♦- &❤❡♦-② &♦ ❡①♣❧❛✐♥
✇❤② ❧♦✇✕♣-✐❝❡❞ ✐&❡♠. ✐♥❝✉- ❧♦..❡. ♦♥ ❛✈❡-❛❣❡✱ ✇❤❡♥ ✕ ✉♥❞❡- &❤❡ .❛♠❡ ❛✉❝&✐♦♥ ❢♦-♠❛& ✕
❤✐❣❤✕♣-✐❝❡❞ ✐&❡♠. ❣❡♥❡-❛❧❧② ❞♦ ✇❡❧❧✿
❙!②❧✐%❡❞ ❋❛❝! ✷✳ ❚❤❡ ♣"♦✜$ ♠❛"❣✐♥ ♦❢ ❛ ♣❡♥♥② ❛✉❝$✐♦♥ ✐3 ✐♥❝"❡❛3✐♥❣ ✐♥ $❤❡ "❡$❛✐❧ ✈❛❧✉❡ ♦❢ $❤❡
♣"♦❞✉❝$✳ ❲❤✐❧❡ ❤✐❣❤✕✈❛❧✉❡ ♣"♦❞✉❝$3 ❛"❡ ♦❢$❡♥ ❛❧3♦ ❤✐❣❤❧② ♣"♦✜$❛❜❧❡✱ ❛✉❝$✐♦♥3 ❢♦" ❧♦✇✕♣"✐❝❡
♦❜❥❡❝$3 $❡♥❞ $♦ ✐♥❝✉" ❧♦33❡3 ♦♥ ❛✈❡"❛❣❡✳
❱❛"✐❛$✐♦♥ ❜② ,"✐❝❡ ■♥❝"❡♠❡♥$✿ ■♥ ❛❧❧ ❛✉❝&✐♦♥.✱ &❤❡ ❜✐❞ ❢❡❡ ✇❛. ●❇N ✵✳✺✵✳ ❍♦✇❡✈❡-✱ &❤❡-❡ ✐.
✈❛-✐❛&✐♦♥ ✐♥ &❤❡ ♣-✐❝❡ ✐♥❝-❡♠❡♥& ✕ ✐♥ &❤❡ ✏❞❡❢❛✉❧&✑ ❛✉❝&✐♦♥✱ ❡❛❝❤ ❜✐❞ -❛✐.❡. &❤❡ ♣-✐❝❡ ❜② ●❇N
✵✳✶✵❀ &❤✐. ❢♦-♠❛& ✇❛. ✉.❡❞ ✐♥ ✽✺✳✷✺✪ ♦❢ ❛✉❝&✐♦♥.✳ ■♥ ♦♥❧② ✶✶ ❛✉❝&✐♦♥. ✭✵✳✵✹✪✮ ♦❢ &❤❡ .❛♠♣❧❡
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✼✵ ❖❢ "❡♥♥✐❡& ❛♥❞ ")♦&♣❡❝-&✿ ❯♥❞❡)&-❛♥❞✐♥❣ ❇❡❤❛✈✐♦✉) ✐♥ "❡♥♥② ❆✉❝-✐♦♥&
❋✐❣✉&❡ ✸✳✹✿ ❘❡-❛✐❧ 0&✐❝❡ ❛♥❞ ▼❛&❣✐♥✿ ✶✵♣ ❛✉❝-✐♦♥8
✇❛8 ❛ ❤✐❣❤❡& ✐♥❝&❡♠❡♥- ♦❢ ●❇0 ✷✵ ✉8❡❞✱ ✇❤✐❧❡ ✵✳✼✪ ♦❢ ❛✉❝-✐♦♥8 ✇❡&❡ ❝♦♥❞✉❝-❡❞ ✇✐-❤ ❛ ●❇0
✵✳✵✺ ✐♥❝&❡♠❡♥- ❛♥❞ ✵✳✵✶✪ ✇✐-❤ ❛ ●❇0 ✵✳✵✷ ✐♥❝&❡♠❡♥-✳ ✽✪ ♦❢ ❛✉❝-✐♦♥8 ✇❡&❡ ❝♦♥❞✉❝-❡❞ ✇✐-❤ ❛
8✐♥❣❧❡✕♣❡♥♥② ♣&✐❝❡ ✐♥❝&❡♠❡♥-✳ ■♥ -❤❡ &❡♠❛✐♥✐♥❣ ✹✳✺✪ ♦❢ ❛✉❝-✐♦♥8✱ -❤❡ ❛✉❝-✐♦♥ ✇❛8 ❝♦♥❞✉❝-❡❞
✇✐-❤ ❛ ③❡&♦ ✐♥❝&❡♠❡♥-✿ ✐♥ -❤❡8❡ ❛✉❝-✐♦♥8✱ -❤❡ ✇✐♥♥✐♥❣ ❜✐❞❞❡& &❡❝❡✐✈❡❞ -❤❡ ✏✜♥❛❧ ♣&✐❝❡ ♦✛✑✱ ❛8
-❤❡8❡ ❛✉❝-✐♦♥8 ✇❡&❡ ❝❛❧❧❡❞ ♦♥ ❙✇♦♦♣♦✳
■♥ 8♦♠❡ ❝❛8❡8✱ ✇❡ ♦❜8❡&✈❡ ✈❛&✐❛-✐♦♥ ✐♥ -❤❡ ♣&✐❝❡ ✐♥❝&❡♠❡♥- ❢♦& ❞✐✛❡&❡♥- ❛✉❝-✐♦♥8 ♦❢ -❤❡
8❛♠❡ ♣&♦❞✉❝-✳ ❋♦& ❡①❛♠♣❧❡✱ -❤❡ ◆✐❦♦♥ ❉✾✵ ✇❛8 8♦❧❞ ✸✺✶ -✐♠❡8 ✇✐-❤ ❛ ●❇0 ✵✳✶✵ ✐♥❝&❡♠❡♥-✱
②✐❡❧❞✐♥❣ ❛✈❡&❛❣❡ &❡✈❡♥✉❡ ♦❢ ●❇0 ✶✽✺✾✳✻✷✱ ❛♥❞ ✻✷✺ -✐♠❡8 ✇✐-❤ ❛ ♦♥❡ ♣❡♥♥② ✐♥❝&❡♠❡♥-✳ ■♥
-❤❡ ❧❛--❡& ❢♦&♠❛-✱ ❛✈❡&❛❣❡ &❡✈❡♥✉❡ ✕ ❢♦& -❤❡ 8❛♠❡ ♣&♦❞✉❝- ✕ ❛♠♦✉♥-❡❞ -♦ ●❇0 ✷✶✻✼✳✺✸✦
❲❤✐❧❡ ❡①♣❧♦&❛-♦&② ❛♥❛❧②8✐8 8✉❣❣❡8-8 -❤❛- ❧♦✇❡& ♣&✐❝❡ ✐♥❝&❡♠❡♥-8 ❛&❡ ❛88♦❝✐❛-❡❞ ✇✐-❤ ✐♠♣&♦✈❡❞
♣&♦✜-❛❜✐❧✐-② ♦❢ -❤❡ ❛✉❝-✐♦♥✱ ♦-❤❡& -❤✐♥❣8 ❤❡❧❞ ❡W✉❛❧✱ ✐- ✐8 ❝❧❡❛& -❤❛- -❤❡ &❡❧❛-✐♦♥8❤✐♣ ✐8 8✉❜❥❡❝-
-♦ ♥♦✐8❡✿ ❢♦& ❡①❛♠♣❧❡✱ ●❇0 ✵✳✵✺ ❛✉❝-✐♦♥8 ❢♦& -❤❡ ❉✾✵ ✇❡&❡ ❧❡88 ♣&♦✜-❛❜❧❡ -❤❛♥ ●❇0 ✵✳✶✵
♦♥❡8✱ ❛❧-❤♦✉❣❤ -❤❡ 8❛♠♣❧❡ 8✐③❡ ✐8 &❡❧❛-✐✈❡❧② 8♠❛❧❧ ❤❡&❡ ✭✶✽✶ ♦❜8❡&✈❛-✐♦♥8✮✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✸ ✼✶
❋✐❣✉&❡ ✸✳✺✿ ❊①♣❡❝0❡❞ ❘❡0✉&♥4 0♦ ❇✐❞❞✐♥❣ ✭❲✐✐ ❆✉❝0✐♦♥4✱ ✶✵♣✮
❘❡❣&❡44✐♦♥ ❛♥❛❧②4✐4 4❤♦✇4 0❤❛0 ✜♥❛❧ ♣&✐❝❡ ♦✛ ❛✉❝0✐♦♥4 ❛&❡ ❡4♣❡❝✐❛❧❧② ♣&♦✜0❛❜❧❡✱ ❛44♦❝✐❛0❡❞
✇✐0❤ ❛ ✵✳✽✶ ✐♥❝&❡❛4❡ ✐♥ ♠❛&❣✐♥ ♦✈❡& 0❤❡ ✶✵♣ ❛✉❝0✐♦♥ ❜❡♥❝❤♠❛&❦✳ ❙✐♠✐❧❛&❧②✱ ♦♥❡✕❝❡♥0 ❛✉❝0✐♦♥4
❛&❡ ♠♦&❡ ♣&♦✜0❛❜❧❡ 0❤❛♥ 0❤❡ 40❛♥❞❛&❞✱ ❛❧0❤♦✉❣❤ 0❤❡ ♠❛&❣✐♥ ✐4 ❧♦✇❡&✿ 0❤❡② ❛&❡ ❛44♦❝✐❛0❡❞
✇✐0❤ ❛ ✵✳✶✺ ❤✐❣❤❡& ♠❛&❣✐♥✳ ❋♦& ✺♣ ❛♥❞ ✷✵♣ ❛✉❝0✐♦♥4✱ 0❤❡ ❞✐✛❡&❡♥❝❡4 0♦ 0❤❡ ❞❡❢❛✉❧0 ♣❡♥♥②
❛✉❝0✐♦♥ ❛&❡ ♥♦0 4✐❣♥✐✜❝❛♥0 ❛0 0❤❡ ✺✪ ❧❡✈❡❧✱ ♣&❡4✉♠❛❜❧② ❜❡❝❛✉4❡ ✇❡ ♦❜4❡&✈❡ 4♦ ❢❡✇ ❛✉❝0✐♦♥4
✐♥ 0❤✐4 ❝♦♥✜❣✉&❛0✐♦♥✳ ❍❡♥❝❡✱
❙!②❧✐%❡❞ ❋❛❝! ✸✳ ●✐✈❡♥ %❤❡ '❡%❛✐❧ ✈❛❧✉❡ ♦❢ %❤❡ ♦❜❥❡❝%✱ ❧♦✇❡' ♣'✐❝❡ ✐♥❝'❡♠❡♥%4 ❛'❡ ❛44♦❝✐❛%❡❞
✇✐%❤ ❤✐❣❤❡' ♣'♦✜% ♠❛'❣✐♥4 ✐♥ %❤❡ ❛✉❝%✐♦♥
❱❛'✐❛%✐♦♥ ❜❡%✇❡❡♥ ❘♦✉♥❞4✿ ❙✐♥❝❡ 0❤❡ ❞❛0❛4❡0 ✐4 ✇✐❞❡✱ ✐✳❡✳ ❝♦♥0❛✐♥4 ♠❛♥② ♦❜4❡&✈❛0✐♦♥4 ❢♦&
❛✉❝0✐♦♥4 ♦❢ 0❤❡ 4❛♠❡ ♣&♦❞✉❝0✱ ✐4 ✐♠♣♦&0❛♥0 0♦ ❝♦♥4✐❞❡& ✈❛&✐❛0✐♦♥ ✇✐0❤✐♥ ❛✉❝0✐♦♥4 ❢♦& 0❤❡ 4❛♠❡
♦❜❥❡❝04✳ ●✐✈❡♥ 0❤❛0 ❛♥ ❛✉❝0✐♦♥ &❡❛❝❤❡❞ &♦✉♥❞ i✱ ♦♥❡ ♠❛② ❝♦♠♣✉0❡ 0❤❡ ❡♠♣✐&✐❝❛❧ ♣&♦❜❛❜✐❧✐0②
♦❢ 0❤❡ ❛✉❝0✐♦♥ ❡♥❞✐♥❣ ✐♥ 0❤✐4 &♦✉♥❞ ✭✐♥ 0❤❡ 0❡&♠✐♥♦❧♦❣② ♦❢ ●✉&❡✈✐❝❤ ❡0 ❛❧✳ ✭✷✵✵✾✮✱ 0❤✐4 ✐4 0❤❡
✏♣❤②4✐❝❛❧ ♣&♦❜❛❜✐❧✐0②✑✮✳ ❚❛❦✐♥❣ ✐♥0♦ ❛❝❝♦✉♥0 0❤❡ ❝✉&&❡♥0 ♣&✐❝❡ ✐♥ &♦✉♥❞ i ❛♥❞ 0❤❡ ✈❛❧✉❡ ♦❢ 0❤❡
♦❜❥❡❝0✱ 0❤✐4 ❛❧❧♦✇4 ❢♦& ❛ 40&❛✐❣❤0❢♦&✇❛&❞ ❝♦♠♣✉0❛0✐♦♥ ♦❢ 0❤❡ ❡①♣❡❝0❡❞ ✭♠♦♥❡0❛&②✮ &❡0✉&♥ 0♦
❛ ❜✐❞✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✼✷ ❖❢ "❡♥♥✐❡& ❛♥❞ ")♦&♣❡❝-&✿ ❯♥❞❡)&-❛♥❞✐♥❣ ❇❡❤❛✈✐♦✉) ✐♥ "❡♥♥② ❆✉❝-✐♦♥&
❋✐❣✉&❡ ✸✳✺ ♣❧♦./ .❤❡ ❡①♣❡❝.❡❞ &❡.✉&♥/ .♦ ❜✐❞❞✐♥❣ ✐♥ ◆✐♥.❡♥❞♦ ❲✐✐ ❛✉❝.✐♦♥/ ✇✐.❤ ❛ ✶✵♣
♣&✐❝❡ ✐♥❝&❡♠❡♥.❀ .❤❡ ♣✐❝.✉&❡ ✐/ /✐♠✐❧❛& ❢♦& ♦.❤❡& ❛✉❝.✐♦♥✳ ■. ✐/ ❝❧❡❛& .❤❛. ✐♥ ❡❛&❧② &♦✉♥❞/✱
.❤❡ ❡①♣❡❝.❡❞ &❡.✉&♥/ .♦ ❜✐❞❞✐♥❣ ❛&❡ ✈❡&② /.&♦♥❣❧② ♥❡❣❛.✐✈❡✿ ✐♥ ❢❛❝.✱ ✐♥ &♦✉♥❞ ✶✱ .❤❡ ❡①♣❡❝.❡❞
&❡.✉&♥ ✐/ ●❇F ✲✵✳✹✵ ♦♥ ❛ ❜✐❞❞✐♥❣ /.❛❦❡ ♦❢ ●❇F ✵✳✺✵✳ ❆/ .❤❡ ❛✉❝.✐♦♥ ♣&♦❣&❡//❡/✱ .❤❡ ❡①♣❡❝.❡❞
&❡.✉&♥ .♦ ❜✐❞❞✐♥❣ &✐/❡/❀ ✐♥ ❧❛.❡ &♦✉♥❞/✱ .❤❡ ❡①♣❡❝.❡❞ &❡.✉&♥ .♦ ❜✐❞❞✐♥❣ ❡✈❡♥ ❜❡❝♦♠❡/ ♣♦/✐.✐✈❡✳
❋♦& ❡①❛♠♣❧❡✱ ✐♥ /❛②✱ &♦✉♥❞ ✶✷✵✵✱ ✇❤❡♥ .❤❡ ♣&✐❝❡ ❤❛/ &❡❛❝❤❡❞ ●❇F ✶✷✵✳✵✵ ❢♦& ❛ ❝♦♥/♦❧❡ ✇♦&.❤
●❇F ✶✽✵✳✵✵✱ .❤❡ ♣&♦❜❛❜✐❧✐.② ♦❢ ✇✐♥♥✐♥❣ ✐/ /✉✣❝✐❡♥.❧② ❤✐❣❤ .❤❛. ❛ ❜✐❞ ②✐❡❧❞/ ❛ ♣♦/✐.✐✈❡ ♣&♦✜. ♦❢
●❇F ✵✳✷✵ ✐♥ ❡①♣❡❝.❛.✐♦♥✳ ❖❢ ❝♦✉&/❡✱ &❡❧❛.✐✈❡❧② ❢❡✇ ❛✉❝.✐♦♥/ &❡❛❝❤ /✉❝❤ ❧❛.❡ &♦✉♥❞/✱ ✐♠♣❧②✐♥❣
.❤❛. ✐♥ ♣&❛❝.✐❝❡ .❤❡ ❛&❜✐.&❛❣❡ ♦♣♣♦&.✉♥✐.② ❢♦& ❛ &✐/❦✕♥❡✉.&❛❧ ❜✐❞❞❡& ♠❛② ❜❡ ❧✐♠✐.❡❞✿
❙!②❧✐%❡❞ ❋❛❝! ✹✳ ❚❤❡ ❡①♣❡❝&❡❞ (❡&✉(♥ &♦ ❜✐❞❞✐♥❣ ✐♥ ❛ ♣❡♥♥② ❛✉❝&✐♦♥ ✐♥❝(❡❛1❡1 ✇✐&❤ &❤❡ (♦✉♥❞❀
✐♥ ❡❛(❧② (♦✉♥❞1✱ &❤❡ (❡&✉(♥ ✐1 ♥❡❣❛&✐✈❡✱ ❛♥❞ ✐♥ ❧❛&❡ (♦✉♥❞1 &✉(♥1 ♣♦1✐&✐✈❡✳
❆ ♣♦/✐.✐✈❡ ❝♦&&❡❧❛.✐♦♥ ❜❡.✇❡❡♥ ✇✐♥♥✐♥❣ ♣&♦❜❛❜✐❧✐.② ❛♥❞ ❡①♣❡❝.❡❞ &❡.✉&♥ ❤❛/ ❜❡❡♥ ♦❜/❡&✈❡❞
✐♥ ❤♦&/❡ &❛❝❡ ❜❡..✐♥❣ ♠❛&❦❡./ /✐♥❝❡ ●&✐✣.❤ ✭✶✾✹✾✮✱ ❛♥❞ ✐/ ❦♥♦✇♥ ❛/ .❤❡ ✏❧♦♥❣✕/❤♦. ❜✐❛/✑✳ ❆/
✐♥ ♦✉& ❞❛.❛✱ ✐♥ ❙♥♦✇❜❡&❣ ❛♥❞ ❲♦❧❢❡&/ ✭✷✵✶✵✮ ❛♥❞ ❏✉❧❧✐❡♥ ❛♥❞ ❙❛❧❛♥✐W ✭✷✵✵✵✮✱ &❡.✉&♥/ ❢♦&
❧♦♥❣✕/❤♦. ❜❡./ ❛&❡ /❤❛&♣❧② ♥❡❣❛.✐✈❡ ❜✉. ❜❡./ ♦♥ ❤✐❣❤✕♣&♦❜❛❜✐❧✐.② ♦✉.❝♦♠❡/ ✭❤❡&❡✿ ♣❧❛❝✐♥❣ ❛
❜✐❞ ❧❛.❡ ✐♥ ❛ ♣❡♥♥② ❛✉❝.✐♦♥✮ ②✐❡❧❞ ♣♦/✐.✐✈❡ &❡.✉&♥✳ ❚❤✐/ /✉❣❣❡/./ .❤❛. ♣❡♥♥② ❛✉❝.✐♦♥/ /❤♦✉❧❞
❜❡ ❛❞❞❡❞ .♦ .❤❡ ❛❧&❡❛❞② ❧♦♥❣ ❧✐/. ♦❢ /♣❡❝✉❧❛.✐✈❡ ♠❛&❦❡./ ❡①❤✐❜✐.✐♥❣ ❛ ❧♦♥❣ /❤♦. ❜✐❛/
✸
✳
✸✳✸ ❊①♣❡❝'❡❞ ❯'✐❧✐'② ▼♦❞❡❧
❚❤✐/ /❡❝.✐♦♥ ♣&❡/❡♥./ .❤❡ ❝❛♥♦♥✐❝❛❧ ❡①♣❡❝.❡❞ ✉.✐❧✐.② ♠♦❞❡❧ ♦❢ ♣❡♥♥② ❛✉❝.✐♦♥ ❜✐❞❞✐♥❣✱ ❢♦❧❧♦✇✲
✐♥❣ ✈❡&② ❝❧♦/❡❧② F❧❛.. ❡. ❛❧✳ ✭✷✵✶✸✮✱ ❆✉❣❡♥❜❧✐❝❦ ✭✷✵✶✷✮ ❛♥❞ ❍✐♥♥♦/❛❛& ✭✷✵✶✵✮✳
❆✉❝&✐♦♥ ❘✉❧❡1 ✿ ❚❤❡&❡ ✐/ ❛ /✐♥❣❧❡ ❣♦♦❞ ❝♦♠♠♦♥❧② ✈❛❧✉❡❞ ❛. V ❜② ❛❧❧ ♣♦.❡♥.✐❛❧ ❜✐❞❞❡&/✱ ♦❢
✇❤✐❝❤ .❤❡&❡ ❛&❡ N ✱ ❛♥❞ .❤❡ ♥♦♥✕/.&❛.❡❣✐❝ /❡❧❧❡&✳ ❚❤❡ ❛✉❝.✐♦♥ ♣&♦❝❡❡❞/ .❤&♦✉❣❤ ❛ /❡&✐❡/ ♦❢
(♦✉♥❞1✱ i = 0, 1, 2, . . . ✳ ■♥ &♦✉♥❞ ③❡&♦✱ .❤❡ /.❛&.✐♥❣ ♣&✐❝❡ ✐/ ❛❧/♦ ❡[✉❛❧ .♦ ③❡&♦ ✕ /♦ .❤❡&❡ ❛&❡
♥♦ &❡/❡&✈❡ ♣&✐❝❡/ ✕ ❛♥❞ &✐/❡/ ❜② ❛♥ ❡①♦❣❡♥♦✉/❧② ✜①❡❞ ✐♥❝&❡♠❡♥. β > 0 ❡❛❝❤ &♦✉♥❞
✹
✳ ❚❤✉/✱
✐♥ &♦✉♥❞ i✱ .❤❡ ❝✉&&❡♥. ♣&✐❝❡ ✐/ /✐♠♣❧② βi✳ ❋&♦♠ &♦✉♥❞ ✶ ♦♥✇❛&❞/✱ .❤❡&❡ ✐/ ❛ ❝✉((❡♥& ❤✐❣❤❡1&
❜✐❞❞❡(✱ ✇❤♦ ✐/ &❛♥❞♦♠❧② /❡❧❡❝.❡❞ ❢&♦♠ ❛❧❧ ❛❣❡♥./ .❤❛. ♣❧❛❝❡❞ ❛ ❜✐❞ ✐♥ .❤❡ ♣&❡✈✐♦✉/ &♦✉♥❞ ❛♥❞
♣❛②/ ❛ ❜✐❞❞✐♥❣ ❢❡❡ f ❢♦& ❤❡& ❜✐❞✳ ❚❤❡ ❝✉&&❡♥. ❤✐❣❤❡/. ❜✐❞❞❡& ✐/✱ ❜② ❛//✉♠♣.✐♦♥✱ ♥♦. ❛❧❧♦✇❡❞
✸
❋♦" ❡①❛♠♣❧❡✱ ❲♦♦❞❧❛♥❞ ❛♥❞ ❲♦♦❞❧❛♥❞ ✭✶✾✾✹✮ ♣"❡2❡♥3 ❡✈✐❞❡♥❝❡ ♦❢ 3❤❡ ❧♦♥❣ 2❤♦3 ❜✐❛2 ❢♦" ❜❛2❡❜❛❧❧ ❜❡33✐♥❣✱
❛♥❞ ❍♦❞❣❡2 ❡3 ❛❧✳ ✭✷✵✵✸✮ ❢♦" ❢✉3✉"❡2 ♦♣3✐♦♥2
✹
❆❧3❤♦✉❣❤ 2♦♠❡ ❛✉❝3✐♦♥2 ✇✐3❤ β = 0 ❛"❡ ♦❜2❡"✈❡❞✱ ✐♥ 3❤✐2 ❝❛2❡ 3❤❡ ❛✉❝3✐♦♥ "❡❞✉❝❡2 3♦ ❛ ❲❛" ♦❢ ❆33"✐3✐♦♥✳
❙✐♥❝❡ 3❤✐2 ❝❛2❡ ✐2 ✇❡❧❧ ❦♥♦✇♥✱ ✐3 ✐2 ♦♠✐33❡❞ ❢"♦♠ 3❤❡ ♣"❡2❡♥3 ❛♥❛❧②2✐2
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✸ ✼✸
"♦ ♣❧❛❝❡ ❛ ❜✐❞✳ ❆♥② ♦"❤❡1 ❛❣❡♥"3 "❤❛" ♣❧❛❝❡❞ ❜✐❞3 ❛♥❞ ✇❡1❡ ♥♦" ❝❤♦3❡♥ "♦ ❜❡❝♦♠❡ ❝✉11❡♥"
❤✐❣❤❡3" ❜✐❞❞❡1 ❛❧3♦ ❞♦ ♥♦" ♣❛② "❤❡ ❢❡❡✳ ■❢ ✐♥ 1♦✉♥❞ i > 0 ♥♦ ❜✐❞ ✐3 3✉❜♠✐""❡❞✱ "❤❡ ❣♦♦❞ ✐3
❛✇❛1❞❡❞ "♦ "❤❡ ❝✉11❡♥" ❤✐❣❤❡3" ❜✐❞❞❡1 ✇❤♦ ♣❛②3 "❤❡ ❝✉11❡♥" ♣1✐❝❡ βi✳ ■❢ ♥♦ ❜✐❞ ✐3 3✉❜♠✐""❡❞
✐♥ 1♦✉♥❞ ③❡1♦✱ "❤❡ ❛✉❝"✐♦♥ ❡♥❞3 ✐♠♠❡❞✐❛"❡❧② ❛♥❞ "❤❡ 3❡❧❧❡1 ❦❡❡♣3 "❤❡ ❣♦♦❞✳
❙!"❛!❡❣✐❡' ✿ ❲❡ ❛1❡ ❧♦♦❦✐♥❣ ❢♦1 ❡>✉✐❧✐❜1✐❛ ✐♥ ▼❛1❦♦✈✐❛♥ ♠✐①❡❞ 3"1❛"❡❣✐❡3✳ ■♥ ❡❛❝❤ 1♦✉♥❞ i✱ "❤❡
j = 1, . . . , N − 1 ❝✉11❡♥" ♥♦♥✕❤✐❣❤❡3" ❜✐❞❞❡13 ♣❧❛❝❡ ❛ ❜✐❞ ✇✐"❤ ♣1♦❜❛❜✐❧✐"② pji ✳ ❆3 ✇❡ 3❤♦✇
❜❡❧♦✇✱ ✇✐"❤♦✉" ❧♦33 ♦❢ ❣❡♥❡1❛❧✐"② ✇❡ ❝❛♥ ❝♦♥✜♥❡ ❛""❡♥"✐♦♥ ❢✉1"❤❡1 "♦ "❤❡ 3❡" ♦❢ 3②♠♠❡"1✐❝
❡>✉✐❧✐❜1✐❛✳ ❚❤✉3 "❤❡ 3"1❛"❡❣② 3♣❛❝❡ ♦❢ "❤❡ ❣❛♠❡ ❝❛♥ ❜❡ ✇1✐""❡♥ ❛3 "❤❡ ✐♥✐✜♥✐"❡ 3❡>✉❡♥❝❡✱
{pi}∞0 ✳
❍❛③❛"❞ ❘❛!❡' ✿ ▲❡" h(i) ❜❡ "❤❡ ❤❛③❛"❞ "❛!❡ ♦❢ "❤❡ ❛✉❝"✐♦♥ ✐♥ 1♦✉♥❞ ✐✱ ✐✳❡✳ "❤❡ ♣1♦❜❛❜✐❧✐"② ♦❢
"❤❡ ❛✉❝"✐♦♥ ❡♥❞✐♥❣ ✐♥ 1♦✉♥❞ i✱ ❝♦♥❞✐"✐♦♥❛❧ ♦♥ ❤❛✈✐♥❣ 1❡❛❝❤❡❞ "❤✐3 1♦✉♥❞✳ ❙✐♥❝❡ "❤✐3 >✉❛♥"✐"②
✇✐❧❧ ❜❡ ❡33❡♥"✐❛❧ ❢♦1 ❡♠♣✐1✐❝❛❧ ❛♥❛❧②3✐3✱ ♦❜3❡1✈❡ "❤❛" ❜② "❤❡ 1✉❧❡3 ♦❢ "❤❡ ❣❛♠❡ "❤❡ ❤❛③❛1❞ 1❛"❡
✐3 1❡❧❛"❡❞ "♦ ✐♥❞✐✈✐❞✉❛❧ ❜✐❞❞✐♥❣ ♣1♦❜❛❜✐❧"✐❡3 ❛3 ❢♦❧❧♦✇3✿
h(i) =
(1− pi)N−1
✐❢ i ≥ 1
(1− pi)N
✐❢ i = 0✭✸✳✸✳✶✮
❋✉1"❤❡1♠♦1❡ ❧❡" f(i) ❞❡♥♦"❡ "❤❡ ♣1♦❜❛❜✐❧✐"② ♦❢ "❤❡ ❛✉❝"✐♦♥ ❡♥❞✐♥❣ ✐♥ 1♦✉♥❞ i ✭❡♥❞✐♥❣
♣1♦❜❛❜✐❧✐"②✮✳ ❚❤✐3 ✐3 ❛ ❞✐1❡❝" ❢✉♥❝"✐♦♥ ♦❢ "❤❡ ❤❛③❛1❞ 1❛"❡✿
f(i) = h(i)i−1∏
k=0
(1− h(k)) ✭✸✳✸✳✷✮
❙❡❧❧❡"✬' ❘❡✈❡♥✉❡ ✿ ❙✉♣♣♦3❡ "❤❡ ❛✉❝"✐♦♥ ❡♥❞3 ❛❢"❡1 1♦✉♥❞ i✳ ❚❤❡♥✱ "❤❡ ❝✉11❡♥" ♣1✐❝❡ ✐3 βi✱ ❛♥❞
i ❜✐❞3 ❤❛✈❡ ❜❡❡♥ ♣❧❛❝❡❞✳ ❚❤✐3 ②✐❡❧❞3 "❤❡ ❢♦❧❧♦✇✐♥❣ ❡①♣1❡33✐♦♥ ❢♦1 ❡①♣❡❝"❡❞ 1❡✈❡♥✉❡✿
E(R) =∞∑
i=0
(f + β)if(i) ✭✸✳✸✳✸✮
2❛②♦✛' ✿ L❧❛②❡13 ❤❛✈❡ ❛♥ ❡①♣❡❝"❡❞ ✉"✐❧✐"② ❢✉♥❝"✐♦♥ u(x) ❛❝❝♦1❞✐♥❣ "♦ ✇❤✐❝❤ ♦✉"❝♦♠❡3 ❛1❡
❡✈❛❧✉❛"❡❞✳ ❲❡ ✇✐❧❧ ✈❛1✐♦✉3❧② ❛33✉♠❡ "❤✐3 ❢✉♥❝"✐♦♥ "♦ ❜❡ ❡✐"❤❡1 1✐3❦✕♥❡✉"1❛❧ ♦1 1✐3❦✕❧♦✈✐♥❣✳
❋✉1"❤❡1♠♦1❡✱ ❧❡" VN(i) ❞❡♥♦"❡ "❤❡ ❝♦♥"✐♥✉❛"✐♦♥ ✉"✐❧✐"② ♦❢ ❛ ♣❧❛②❡1 1❡❛❝❤✐♥❣ 1♦✉♥❞ i ❛3 ♥♦♥✕
❤✐❣❤❡3" ❜✐❞❞❡1✱ ❛♥❞ VH(i) "❤❡ ❝♦♥"✐♥✉❛"✐♦♥ ✉"✐❧✐"② ♦❢ ❜❡✐♥❣ ❤✐❣❤❡3" ❜✐❞❞❡1✳
❋✐❣✉1❡ ✸✳✻ ✐❧❧✉3"1❛"❡3 "❤❡ 1✉❧❡3 ♦❢ "❤❡ ❣❛♠❡ ❢♦1 ❛ ♣❡♥♥② ❛✉❝"✐♦♥ ✇✐"❤ ✸ ♣❧❛②❡13✳ ❙✉♣♣♦3❡
"❤❡ ❣❛♠❡ ✐3 ❝✉11❡♥"❧② ✐♥ 1♦✉♥❞ i ≥ 1✱ ❛♥❞ ♣❧❛②❡1 ✶ ✐3 "❤❡ ❝✉11❡♥" ❤✐❣❤❡3" ❜✐❞❞❡1✳ L❧❛②❡13
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✼✹ ❖❢ "❡♥♥✐❡& ❛♥❞ ")♦&♣❡❝-&✿ ❯♥❞❡)&-❛♥❞✐♥❣ ❇❡❤❛✈✐♦✉) ✐♥ "❡♥♥② ❆✉❝-✐♦♥&
❋✐❣✉&❡ ✸✳✻✿ ❙-❛❣❡ ●❛♠❡ ✇✐-❤ ◆❂✸
✷ ❛♥❞ ✸ 8✐♠✉❧-❛♥❡♦✉8❧② ❞❡❝✐❞❡ ✇❤❡-❤❡& -♦ ♣❧❛❝❡ ❛ ❜✐❞✳ ■♥ ❝❛8❡ ♥❡✐-❤❡& 8✉❜♠✐-8 ❛ ❜✐❞✱ -❤❡
❛✉❝-✐♦♥ ❡♥❞8✳ A❧❛②❡& ✶ ✇✐♥8 -❤❡ ❣♦♦❞ ❛- ♣&✐❝❡ β(i − 1)✱ ❛♥❞ ♣❧❛②❡&8 ✷ ❛♥❞ ✸ ❛&❡ ❧❡❢- ✇✐-❤
-❤❡✐& &❡8❡&✈❛-✐♦♥ ✉-✐❧✐-②✳ ■♥ ❝❛8❡ ♦♥❧② ♦♥❡ ♦❢ ♣❧❛②❡&8 ✷ ❛♥❞ ✸ ♣❧❛❝❡8 ❛ ❜✐❞✱ -❤✐8 ♣❧❛②❡& ❜❡❝♦♠❡8
-❤❡ -❤❡ ♥❡①- ❤✐❣❤❡8- ❜✐❞❞❡&✱ &❡❝❡✐✈✐♥❣ ❝♦♥-✐♥✉❛-✐♦♥ ✉-✐❧✐-② VH(i+ 1) ✉♣♦♥ ❡♥-&② -♦ -❤❡ ♥❡①-
&♦✉♥❞✳ ❚❤❡ ♦-❤❡& ♣❧❛②❡&8 ❡♥-❡& &♦✉♥❞ i+1 ❛8 ♥♦♥✕❤✐❣❤❡8- ❜✐❞❞❡&8✱ ✇✐-❤ ❝♦♥-✐♥✉❛-✐♦♥ ✉-✐❧✐-②
VN(i+1)✳ ❋✐♥❛❧❧②✱ ✐♥ ❝❛8❡ ❜♦-❤ ✷ ❛♥❞ ✸ ❜✐❞✱ ♥❛-✉&❡ &❛♥❞♦♠❧② 8❡❧❡❝-8 ♦♥❡ ❜✐❞ -♦ ❜❡ ❛❝❝❡♣-❡❞✱
-❤❡ ♦-❤❡& ❜✐❞ ❜❡✐♥❣ ❞✐8❝❛&❞❡❞✳
❚❤❡ ▲❛%& ❘♦✉♥❞ ✿ ❙✐♥❝❡ -❤❡ ♣&✐❝❡ ♦❢ -❤❡ ❛✉❝-✐♦♥ ✐♥❝&❡❛8❡8 ❜② ❛ ❝♦♥8-❛♥- ✐♥❝&❡♠❡♥- ❡❛❝❤ &♦✉♥❞✱
❛- 8♦♠❡ ♣♦✐♥- -❤❡ ❝✉&&❡♥- ♣&✐❝❡ ♦❢ -❤❡ ❛✉❝-✐♦♥ ✇✐❧❧ ❡①❝❡❡❞ -❤❡ &❡-❛✐❧ ♣&✐❝❡✳ ■♥ ❢❛❝-✱ -❤✐8 ♦❝❝✉&8
✐♥ &♦✉♥❞
i =v − f
β✭✸✳✸✳✹✮
■- ✐8 ❝❧❡❛& -❤❛- ♥♦ ❛❣❡♥- ✇✐❧❧ ❜✐❞ ❛- 8✉❝❤ ♣&✐❝❡8✿
!♦♣♦$✐&✐♦♥ ✸✳✸✳✶✳ ❋♦- ❛❧❧ -♦✉♥❞% i ≥ i✱ ✐♥ ❛♥② %✉❜❣❛♠❡ ♣❡-❢❡❝& ❡8✉✐❧✐❜-✐✉♠ pi = 0
9-♦♦❢✳ ❈♦♥8✐❞❡& ❛♥ ❛❣❡♥- ♣❧❛❝✐♥❣ ❛ ❜✐❞ -❤❛- ✐8 ❛❝❝❡♣-❡❞ ✐♥ &♦✉♥❞ i✳ ❚❤✐8 ②✐❡❧❞8 ❛ ✉-✐❧✐-② ♦❢ ❛-
♠♦8- u(w+V −β(i+1)− f) < u(w)✱ ✐♥ -❤❡ ❡✈❡♥- ♦❢ -❤❡ ❛❣❡♥- ✇✐♥♥✐♥❣ -❤❡ ❛✉❝-✐♦♥ ♦✉-&✐❣❤-
✇✐-❤ -❤✐8 ❜✐❞ ✐♥ &♦✉♥❞ i+ 1✳❇✉- ❡✈❡♥ ✐♥ -❤✐8 ❝❛8❡ -❤❡ ♣❧❛②❡& ❤❛8 ❛ ❜❡--❡& &❡8♣♦♥8❡ -♦ &❡❢&❛✐♥
❢&♦♠ ❜✐❞❞✐♥❣❀ -❤✉8 pi = 0 ✐♥ ❛♥② 8✉❜❣❛♠❡ ♣❡&❢❡❝- ❡M✉✐❧✐❜&✐✉♠✳
❘✐%❦✕◆❡✉&-❛❧✐&② ✿ ❆--❡♥-✐♦♥ ♥♦✇ -✉&♥8 -♦ ❞❡-❡&♠✐♥✐♥❣ -❤❡ ❡M✉✐❧✐❜&✐✉♠ 8-&❛-❡❣✐❡8 ❢♦& -❤❡ &❡✲
♠❛✐♥✐♥❣ &♦✉♥❞8 ✐♥ -❤❡ ❝❛8❡ ♦❢ &✐8❦✕♥❡✉-&❛❧ ❡①♣❡❝-❡❞ ✉-✐❧✐-②✳ ❲❡ ❤❛✈❡
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✸ ✼✺
!♦♣♦$✐&✐♦♥ ✸✳✸✳✷✳ ●✐✈❡♥ u(w) = w✱ &❤❡(❡ ❡①✐*&* ❛ *✉❜❣❛♠❡ ♣❡(❢❡❝& ❡3✉✐❧✐❜(✐✉♠ *✉❝❤ &❤❛&
❜✐❞❞✐♥❣ ♣(♦❜❛❜✐❧✐&✐❡* ❛(❡ ❣✐✈❡♥ ❜②
pi =
1 ✐❢ i = 0
1− N−1
√f
v−βi✐❢ 0 < i < i
0 ✐❢ i ≥ i
✭✸✳✸✳✺✮
✐♠♣❧②✐♥❣ &❤❡ ❤❛③❛(❞ ❢✉♥❝&✐♦♥
h(i) =
0 ✐❢ i = 0
fv−βi
✐❢ 0 < i < i
1 ✐❢ i ≥ i
✭✸✳✸✳✻✮
9(♦♦❢✳ ❋✐)*+✱ +❤❡ ❡/✉✐❧✐❜)✐✉♠ *+)❛+❡❣✐❡* ❢♦) +❤❡ ❝❛*❡ i ≥ i ❢♦❧❧♦✇ ❢)♦♠ ♣)♦♣♦*✐+✐♦♥ ✸✳✸✳✶✳
◆♦✇✱ +✉)♥ +♦ )♦✉♥❞* i < i✳ ❲❡ ✇✐❧❧ ❛**✉♠❡ +❤❛+ VN(i) = VH(i) = 0 ✐♥ ❛❧❧ +❤❡*❡ )♦✉♥❞*✱ ❛♥❞
*❤♦✇ +❤❛+ ✐+ ❤♦❧❞* ✉♥❞❡) +❤❡ ❝❧❛✐♠❡❞ ❡/✉✐❧✐❜)✐✉♠ *+)❛+❡❣✐❡*✳ ❋✐)*+✱ ❝♦♥*✐❞❡) +❤❡ ❝♦♥+✐♥✉❛+✐♦♥
✉+✐❧✐+② ♦❢ ❜❡✐♥❣ +❤❡ ❤✐❣❤❡*+ ❜✐❞❞❡) ✐♥ )♦✉♥❞ ✐✳ ❲✐+❤ ♣)♦❜❛❜✐❧✐+② h(i) +❤✐* ❧❡❛❞* +♦ ✇✐♥♥✐♥❣
+❤❡ ❛✉❝+✐♦♥✱ ❛♥❞ ♦+❤❡)✇✐*❡ +♦ ❜❡✐♥❣ ♥♦♥✕❤✐❣❤❡*+ ❜✐❞❞❡) ✐♥ )♦✉♥❞ i+ 1✳ ❚❤✐* ❣✐✈❡*✱
VH(i) = h(i)(v − βi− f) + (1− h(i))(VN(i+ 1)− f) ✭✸✳✸✳✼✮
=f
v − βi(v − βi)− f = 0 ✭✸✳✸✳✽✮
❋♦) +❤❡ ♥♦♥✕❤✐❣❤❡*+ ❜✐❞❞❡)✱ ✇✐+❤ ♣)♦❜❛❜✐❧✐+② h(i) +❤❡ ❛✉❝+✐♦♥ ❡♥❞* ✐♥ +❤❡ ❝✉))❡♥+ )♦✉♥❞✱
❧❡❛✈✐♥❣ +❤❡ ❜✐❞❞❡) ✇✐+❤ ❤❡) ✇❡❛❧+❤✱ ♥♦)♠❛❧✐*❡❞ +♦ ③❡)♦ ✐♥ +❤✐* *❡❝+✐♦♥ ❢♦) )❡❛❞❛❜✐❧✐+②✳ ❖+❤✲
❡)✇✐*❡✱ +❤❡ ❛✉❝+✐♦♥ ❝♦♥+✐♥✉❡* ❛♥❞ *❤❡ ♠❛② ❡✐+❤❡) ❜❡❝♦♠❡ ♥♦♥✕❤✐❣❤❡*+ ❜✐❞❞❡)✱ ♦) ❝♦♥❞✐+✐♦♥❛❧
♦♥ ❤❛✈✐♥❣ ❛♥ ❛❝❝❡♣+❡❞ ❜✐❞✱ ❤✐❣❤❡*+ ❜✐❞❞❡)✳ ❚❤✐* ②✐❡❧❞*
VN(i) = h(i)0 + (1− h(i)) (ζ(i)VH(i+ 1) + (1− ζ(i))VN(i+ 1)) ✭✸✳✸✳✾✮
= 0 ✭✸✳✸✳✶✵✮
✇❤❡)❡ +❤❡ ❢✉♥❝+✐♦♥ ζ(i) )❡✢❡❝+* +❤❡ ♣)♦❜❛❜✐❧✐+② ♦❢ ❛ *✉❜♠✐++❡❞ ❜✐❞ ❜❡✐♥❣ ❛❝❝❡♣+❡❞✱ ✐✳❡✳ ❛♥②
+✐❡✕❜)❡❛❦✐♥❣ ✐♥ )♦✉♥❞ i✳ ❚❤✉*✱ ③❡)♦ ❝♦♥+✐♥✉❛+✐♦♥ ✉+✐❧✐+② ❛)❡ ❝♦♥*✐*+❡♥+ ✇✐+❤ +❤❡ ❡/✉✐❧✐❜)✐✉♠
*+)❛+❡❣✐❡*✳ ●✐✈❡♥ +❤✐*✱ +❤❡ ♣❧❛②❡)✬* ✉+✐❧✐+② ♦❢ ❡✐+❤❡) ❜✐❞❞✐♥❣ ♦) ♥♦+ ❜✐❞❞✐♥❣ ✐* ③❡)♦ ✐♥ ❡❛❝❤
)♦✉♥❞✳ ❚❤✉*✱ ❛❧❧ ♠✐①+✉)❡* ❛)❡ ✐♥ +❤❡ ❜❡*+ )❡*♣♦♥*❡❀ ❤❡♥❝❡✱ +❤❡ ❝❧❛✐♠❡❞ *+)❛+❡❣✐❡* ❝♦♥*+✐+✉+❡
❛♥ ❡/✉✐❧✐❜)✐✉♠✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✼✻ ❖❢ "❡♥♥✐❡& ❛♥❞ ")♦&♣❡❝-&✿ ❯♥❞❡)&-❛♥❞✐♥❣ ❇❡❤❛✈✐♦✉) ✐♥ "❡♥♥② ❆✉❝-✐♦♥&
❚❤❡ ✐♥'✉✐'✐♦♥ ♦❢ '❤❡ ❡+✉✐❧✐❜.✐✉♠ ✐0 ❛0 ❢♦❧❧♦✇0✿ ♣❧❛❝✐♥❣ ❛ ❜✐❞ ✐♥ .♦✉♥❞ i ✐0 ❡00❡♥'✐❛❧❧② ❛
❣❛♠❜❧❡ '❤❛' ♥♦ ❛❣❡♥' ✇✐❧❧ ♦✈❡.❜✐❞ ✐♥ .♦✉♥❞ i+1✳ ❚❤❡ ❤❛③❛.❞ .❛'❡0 ✐♥ '❤❡ ♣.♦♣♦0✐'✐♦♥ ❡♥0✉.❡
'❤❛' '❤✐0 ❣❛♠❜❧❡ ❤❛0 ❛ ③❡.♦ ❡①♣❡❝'❡❞ ✈❛❧✉❡✱ ❥✉0' ❧✐❦❡ 0'❛②✐♥❣ ♦✉' ♦❢ '❤❡ ❛✉❝'✐♦♥✳ ❍❡♥❝❡✱
❛❣❡♥'0 ✇✐❧❧ ❜❡ ✐♥❞✐✛❡.❡♥' ♦✈❡. ❛♥② ♠✐①'✉.❡ ♦❢ ❜✐❞❞✐♥❣✴♥♦' ❜✐❞❞✐♥❣✱ ❛♥❞ ✇❡ ❛.❡ ❢.❡❡ '♦ ❝❤♦♦0❡
'❤❡ ✇✐♥♥✐♥❣ ♣.♦❜❛❜✐❧✐'✐❡0 ✐♥ .♦✉♥❞ i+1 '♦ ♠❛❦❡ ❛❣❡♥'0 ✐♥❞✐✛❡.❡♥' ❛❜♦✉' ❜✐❞❞✐♥❣ ✐♥ .♦✉♥❞ i✳
❆0 D❧❛'' ❡' ❛❧✳ ✭✷✵✶✸✱ &'♦♣♦*✐,✐♦♥ ✷✮ *❤♦✇✱ ♦,❤❡' ❡2✉✐❧✐❜'✐❛ ❝❛♥ ❛'✐*❡ ✐♥ ,❤❡ '✐*❦✕♥❡✉,'❛❧
*❡,,✐♥❣✳ ❍♦✇❡✈❡'✱ ,❤❡*❡ ❡2✉✐❧✐❜'✐❛ '❡2✉✐'❡ ,❤❡ ❛✉❝,✐♦♥ ❡♥❞✐♥❣ ❡✐,❤❡' ✐♥ '♦✉♥❞ i = 0 ♦' i = 1❀
✐♥,✉✐,✐✈❡❧②✱ ✐❢ ✐♥ ❛♥② '♦✉♥❞ i ❛ ♣❧❛②❡' *,'✐❝,❧② ♣'❡❢❡'* ,♦ ❜✐❞✱ ,❤❡♥ ♥♦ ♣❧❛②❡' ✇❛♥,* ,♦ ❜✐❞
✐♥ '♦✉♥❞ i − 1✱ ❤❡♥❝❡ ✉♥'❛✈❡❧❧✐♥❣ ,❤❡ ❡2✉✐❧✐❜'✐✉♠✳ ❙✐♥❝❡ *✉❝❤ ♦✉,❝♦♠❡* ❛'❡ ♥♦, ♦❜*❡'✈❡❞
❡♠♣✐'✐❝❛❧❧②✱ ✇❡ ❢♦❝✉* ❛,,❡♥,✐♦♥ ♦♥ ,❤❡ ♥♦♥✕❞❡❣❡♥❡'❛,❡ ❡2✉✐❧✐❜'✐✉♠ ✭❛♥❞ ✐,* ✈❡'*✐♦♥* ✉♥❞❡'
'✐*❦✕❛✈❡'*✐♦♥ ❛♥❞ ♣'♦*♣❡❝, ,❤❡♦'②✮ ✐♥ ,❤❡ *✉❜*❡2✉❡♥, ❛♥❛❧②*✐*✳
❙✐♥❝❡ ,❤❡ ♠♦❞❡❧ ❤❛* ♥♦ ❢'❡❡ ♣❛'❛♠❡,❡'* ,♦ ❡*,✐♠❛,❡✱ ,❤❡ ♣'❡❞✐❝,✐♦♥* ♦❢ ,❤❡ ♠♦❞❡❧ ❝❛♥ ❜❡
❞❡'✐✈❡❞ ❞✐'❡❝,❧②✿
!♦♣♦$✐&✐♦♥ ✸✳✸✳✸✳ ❯♥❞❡$ %❤❡ ❡'✉✐❧✐❜$✐✉♠ ✐♥ ♣$♦♣♦/✐%✐♦♥ ✸✳✸✳✹✱
✶✳ ❚❤❡ ❡①♣❡❝%❡❞ $❡%✉$♥ %♦ ❛ ❜✐❞ ✐/ ③❡$♦ ✐♥ $♦✉♥❞ i < i
✷✳ ❙❡❧❧❡$✬/ ❡①♣❡❝%❡❞ $❡✈❡♥✉❡ ❡'✉❛❧/ %❤❡ $❡%❛✐❧ ♣$✐❝❡✱ E(R) = v
>$♦♦❢✳ ✶✳ ❋♦❧❧♦✇* ✐♠♠❡❞✐❛,❡❧② ❢'♦♠ ,❤❡ ♣'♦♦❢ ♦❢ ♣'♦♣♦*✐,✐♦♥ ✸✳✸✳✹
✷✳ ❙❡❡ &❧❛,, ❡, ❛❧✳ ✭✷✵✶✸✱ *❡❝,✐♦♥ ✷✳✷✮
■♥ ♦,❤❡' ✇♦'❞*✱ ,❤❡ ♠♦❞❡❧ ❢❛✐❧* ,♦ ♠❛,❝❤ ❛♥② ♦❢ ,❤❡ *,②❧✐*❡❞ ❢❛❝,*✳ ❊①♣❡❝,❡❞ '❡✈❡♥✉❡
❡2✉❛❧* ,❤❡ '❡,❛✐❧ ✈❛❧✉❡ ♦❢ ,❤❡ ❣♦♦❞✱ ✐♥ ❝♦♥,'❛❞✐❝,✐♦♥ ♦❢ *,②❧✐*❡❞ ❢❛❝, ✶✳❚❤❡ ♣'✐❝❡ ✐♥❝'❡♠❡♥,
❤❛* ♥♦ ✐♠♣❛❝, ♦♥ '❡✈❡♥✉❡✱ ❛♥❞ ,❤❡ ❡①♣❡❝,❡❞ '❡,✉'♥ ,♦ ❜✐❞❞✐♥❣ ✐* ③❡'♦ ✐♥ ❡❛❝❤ '♦✉♥❞✱ ♥♦,
✐♥❝'❡❛*✐♥❣ ❛* ♣❡' *,②❧✐*❡❞ ❢❛❝, ✹✳ ❋✉',❤❡'♠♦'❡✱ ♣'♦✜,* ❛'❡ ❛❧✇❛②* ✕ ✐♥ ❝♦♥,'❛❞✐❝,✐♦♥ ♦❢ *,②❧✐*❡❞
❢❛❝, ✷✱ ,❤❡'❡ ✐* ♥♦ ❞❡♣❡♥❞❡♥❝❡ ♦♥ ,❤❡ ✈❛❧✉❡ ♦❢ ,❤❡ ❣♦♦❞✳
❚❤✐* ♣'♦♠♣,❡❞ &❧❛,, ❡, ❛❧✳ ✭✷✵✶✸✮ ,♦ ❡①,❡♥❞ ,❤❡ &❡♥♥② ❆✉❝,✐♦♥ ♠♦❞❡❧ ❢♦' '✐*❦ ❧♦✈✐♥❣
♣'❡❢❡'❡♥❝❡*✱ ✐♥ ,❤❡ ,'❛❞✐,✐♦♥ ♦❢ ❲❡✐,③♠❛♥ ✭✶✾✻✺✮✳ ❚❤❛, ✐*✱ ❧❡, ,❤❡ ♣❧❛②❡' ♥♦✇ ❤❛✈❡ ❈❆❘❆
✉,✐❧✐,② ❢✉♥❝,✐♦♥* ♦❢ ,❤❡ ❢♦'♠
u(w) =1− e−αw
α✭✸✳✸✳✶✶✮
❚❤✐* ❧❡❛❞* ,♦ ,❤❡ '❡✈✐*❡❞ ❡2✉✐❧✐❜'✐✉♠✿
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✸ ✼✼
!♦♣♦$✐&✐♦♥ ✸✳✸✳✹✳ ❲✐"❤ ❈❆❘❆ ✉"✐❧✐"②✱ "❤❡,❡ ❡①✐.". ❛♥ ❡1✉✐❧✐❜,✐✉♠ .✉❝❤ "❤❛" ❤❛③❛,❞ ,❛"❡.
❛,❡ ❣✐✈❡♥ ❜②
h(i) =
0 ✐❢ i = 0
eαf−1eαf−eα(f+βi−v) ✐❢ 0 < i < i
1 ✐❢ i ≥ i
✭✸✳✸✳✶✷✮
.✉♣♣♦,"❡❞ ❜② ❜✐❞❞✐♥❣ ♣,♦❜❛❜✐❧✐"✐❡.
pi =
1 ✐❢ i = 0
1− N−1√
h(i) ✐❢ 0 < i < i
0 ✐❢ i ≥ i
✭✸✳✸✳✶✸✮
<,♦♦❢✳ ❚❤❡ *+❡♣* ❛.❡ ❞✐.❡❝+❧② ❛♥❛❧♦❣♦✉* +♦ ♣.♦♣♦*✐+✐♦♥ ✸✳✸✳✹✳ ❙❡❡ :❧❛++ ❡+ ❛❧✳ ✭✷✵✶✸✱ *❡❝+✐♦♥
✷✳✸✮ ❢♦. ❢✉.+❤❡. ❞❡+❛✐❧*
❲✐+❤ .✐*❦✕❧♦✈✐♥❣ ♣.❡❢❡.❡♥❝❡*✱ ❛❣❡♥+* ✇✐❧❧ ❛❝❝❡♣+ ✉♥❢❛✐. *♦♠❡ ❣❛♠❜❧❡*✳ ❇② ❝♦♥+✐♥✉✐+②✱ +❤❡
❤❛③❛.❞ .❛+❡* +❤❛+ ♠❛❦❡ ❜✐❞❞❡.* ✐♥❞✐✛❡.❡♥+ ✐♥ +❤❡ .✐*❦✕❧♦✈✐♥❣ ❝❛*❡✱ ♠✉*+ ❜❡ ❧♦✇❡, +❤❛♥ ✉♥❞❡.
.✐*❦✕♥❡✉+.❛❧✐+②✳ ❚❤✉*✱ +❤❡ ❡①♣❡❝+❡❞ ♠♦♥❡+❛.② .❡+✉.♥ +♦ ❜✐❞* ✇✐❧❧ ❜❡ ♥❡❣❛+✐✈❡✳ ❍❡♥❝❡ +❤❡
❞✉.❛+✐♦♥ ♦❢ +❤❡ ❛✉❝+✐♦♥ f(i) ✜.*+ ♦.❞❡. *+♦❝❤❛*+✐❝❛❧❧② ❞♦♠✐♥❛+❡* +❤❡ ❞✉.❛+✐♦♥ ✉♥❞❡. .✐*❦✕
♥❡✉+.❛❧✐+②❀ ❜② +❤❡ ❡①♣.❡**✐♦♥ ❢♦. ❡①♣❡❝+❡❞ .❡✈❡♥✉❡✱ +❤✐* ♠❡❛♥* +❤❛+ +❤❡ *❡❧❧❡. ♠✉*+ ♠❛❦❡
❤✐❣❤❡. ❡①♣❡❝+❡❞ .❡✈❡♥✉❡ +❤❛♥ +❤❡ ✈❛❧✉❡ ♦❢ +❤❡ ❣♦♦❞✳ ❚❤✉*✱ +❤❡ .✐*❦✕❧♦✈✐♥❣ ♠♦❞❡❧ ✐* ✐♥
♣.✐♥❝✐♣❧❡ ❛❜❧❡ +♦ ❡①♣❧❛✐♥ *+②❧✐*❡❞ ❢❛❝+ ✶✳
❍♦✇❡✈❡.✱ ❢✉.+❤❡. ♣.♦♣❡.+✐❡* ♦❢ +❤❡ ♠♦❞❡❧ ✉♥❞❡. .✐*❦✕❧♦✈✐♥❣ ♣.❡❢❡.❡♥❝❡* ❛.❡ ❞✐✣❝✉❧+ +♦
♦❜+❛✐♥ :❧❛++ ❡+ ❛❧✳ ✭✷✵✶✸✮✳ ❚❤❡ ❛✉+❤♦.* ❝♦♥❞✉❝+ *♦♠❡ *✐♠✉❧❛+✐♦♥* +♦ *❤♦✇ +❤❛+ ❧♦✇❡. ♣.✐❝❡
✐♥❝.❡♠❡♥+* ✐♥❝.❡❛*❡ .❡✈❡♥✉❡✱ ❛♥❞ ♣.♦✜+❛❜✐❧✐+② .✐*❡* ✇✐+❤ +❤❡ ✈❛❧✉❡ ♦❢ +❤❡ ❣♦♦❞✳ ❲❡ ✐♥✈❡*+✐❣❛+❡
❜❡❧♦✇ +❤❡ ♣❡.❢♦.♠❛♥❝❡ ♦❢ +❤❡ .✐*❦✕❧♦✈✐♥❣ ♠♦❞❡❧ ❡♠♣✐.✐❝❛❧❧②✳
✸✳✹ #$♦&♣❡❝*& ❛♥❞ #❡♥♥✐❡&
<,♦.♣❡❝" ❚❤❡♦,②✱ ❞❡✈❡❧♦♣❡❞ ✐♥ ❑❛❤♥❡♠❛♥ ❛♥❞ ❚✈❡.*❦② ✭✶✾✼✾✮ ❛♥❞ .❡✜♥❡❞ ✐♥ ❚✈❡.*❦② ❛♥❞
❑❛❤♥❡♠❛♥ ✭✶✾✾✷✮✱ *❡❡❦* +♦ ❜❡ ❛ ❞❡.❝,✐♣"✐✈❡ +❤❡♦.② ♦❢ ❤✉♠❛♥ ❜❡❤❛✈✐♦✉. ✉♥❞❡. .✐*❦
✺
✳ ❚❤❡ ❦❡②
✺
❙❡❡ ❲❛❦❦❡% ✭✷✵✶✵✱ ❝❤✳ ✾✮ ❢♦% ❛♥ ❡①♣♦5✐7✐♦♥ ♦❢ 7❤❡ 7❤❡♦%② ❛5 ❛♣♣❧✐❡❞ ✐♥ 7❤✐5 5❡❝7✐♦♥✳ ❙❡❡ ❇❛%❜❡%✐5 ✭✷✵✶✷❛✮
❢♦% ❛♥ ❛♣♣❧✐❝❛7✐♦♥ 7♦ 5❧♦7✕♠❛❝❤✐♥❡ ❣❛♠❜❧✐♥❣
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✼✽ ❖❢ "❡♥♥✐❡& ❛♥❞ ")♦&♣❡❝-&✿ ❯♥❞❡)&-❛♥❞✐♥❣ ❇❡❤❛✈✐♦✉) ✐♥ "❡♥♥② ❆✉❝-✐♦♥&
✐♥❣%❡❞✐❡♥() ♦❢ (❤❡ (❤❡♦%② ❛%❡ ❛) ❢♦❧❧♦✇)✿ ✜%)(✱ ❧♦((❡%✐❡) ❛%❡ ❡✈❛❧✉❛(❡❞ %❡❧❛(✐✈❡ (♦ ❛ ❡❢❡ ❡♥❝❡
♣♦✐♥( %❛(❤❡% (❤❛♥ ✐♥ (❡%♠) ♦❢ (❤❡✐% ❛❜)♦❧✉(❡ ❝♦♥)❡9✉❡♥❝❡)✱ ❛) ✐♥ ❡①♣❡❝(❡❞ ✉(✐❧✐(② (❤❡♦%②✳
❙❡❝♦♥❞✱ (❤❡ ❞❡❝✐)✐♦♥✕♠❛❦❡% ♠❛② ♥♦( ❝♦♥)✐❞❡% ❛❧❧ ♣♦))✐❜❧❡ ♦✉(❝♦♠❡) ♦❢ (❤❡ ❧♦((❡%②✱ ❜✉( ♦♥❧②
❛♥ ❡)♣❡❝✐❛❧❧② )❛❧✐❡♥( )✉❜)❡( ✭✏♥❛%%♦✇ ❢%❛♠✐♥❣✑✱ )❡❡ ❇❛%❜❡%✐) ✭✷✵✶✷❜✮✮✳ ■♥ ♣%✐♥❝✐♣❧❡✱ (❤✐) ❢%❛♠❡
♠❛② ❜❡ ♠❛♥✐♣✉❧❛(❡❞ (♦ ❡①(%❛❝( )✉%♣❧✉) ❢%♦♠ ❛♥ ❛❣❡♥(✳ ❚❤✐%❞✱ (❤❡ ✈❛❧✉❡ ❢✉♥❝(✐♦♥ ❛❝❝♦%❞✐♥❣ (♦
✇❤✐❝❤ ♦✉(❝♦♠❡) ❛%❡ ❡✈❛❧✉❛(❡❞ ✐♠♣❧✐❡) %✐)❦✕❛✈❡%)✐♦♥ ❢♦% ❣❛✐♥) %❡❧❛(✐✈❡ (♦ (❤❡ %❡❢❡%❡♥❝❡ ♣♦✐♥(✱
❛♥❞ ❝♦♥✈❡%)❡❧② %✐)❦✕❧♦✈✐♥❣ ❜❡❤❛✈✐♦✉% ❢♦% ❧♦))❡) %❡❧❛(✐✈❡ (♦ (❤❡ %❡❢❡%❡♥❝❡✳ ❘❡❧❛(❡❞❧②✱ ❧♦))❡)
✏❧♦♦♠ ❧❛%❣❡% (❤❛♥ ❣❛✐♥)✑✿ (❤❡ ❞✐)✉(✐❧✐(② ♦❢ ❛ ❧♦)) −x ❡①❝❡❡❞) ✐♥ ❛❜)♦❧✉(❡ (❤❡ ✈❛❧✉❡ (❤❡ ✈❛❧✉❡
❣❛✐♥ x ✭❧♦)) ❛✈❡%)✐♦♥✮✳ ❋✐♥❛❧❧②✱ ♦✉(❝♦♠❡) ♦❢ (❤❡ ❧♦((❡%② ❛%❡ ♥♦( ✇❡✐❣❤❡❞ ❜② (❤❡✐% ♦❜❥❡❝(✐✈❡
♣%♦❜❛❜✐❧✐(✐❡)✱ ❜✉( )✉❜❥❡❝(✐✈❡ ❞❡❝✐.✐♦♥ ✇❡✐❣❤(. (❤❛( ❛%❡ ♦❜(❛✐♥❡❞ ❢%♦♠ ❛ ♣%♦❜❛❜✐❧✐(② ✇❡✐❣❤(✐♥❣
❢✉♥❝(✐♦♥✳
❚❤❡ )❡❝(✐♦♥ ♣%♦❝❡❡❞) ❜② ❞❡✈❡❧♦♣✐♥❣ (❤❡ ♣%♦)♣❡❝( (❤❡♦%② ♠♦❞❡❧ ♦❢ ♣❡♥♥② ❛✉❝(✐♦♥ ❜❡❤❛✈✐♦✉%
✜%)( ❢♦% (❤❡ ❝❛)❡ ✇❤❡%❡ (❤❡ ❝✉%%❡♥( ❜✐❞ ✐) (❤❡ %❡❢❡%❡♥❝❡ ♣♦✐♥(✱ ❛♥❞ )❦❡(❝❤❡) )♦♠❡ ✐♠♣❧✐❝❛(✐♦♥)
♦❢ (❤❡ (❤❡♦%②✳
❆ ❞❡❝✐)✐♦♥✕♠❛❦❡% ❝♦♥(❡♠♣❧❛(❡) ♣❧❛❝✐♥❣ ❛ ❜✐❞ ✐♥ %♦✉♥❞ i < I ♦❢ (❤❡ ❛✉❝(✐♦♥✱ ❛♥❞ ❡♥(❡%(❛✐♥)
✐♥ ❤❡% ♠✐♥❞ (❤❡ ♣♦))✐❜❧❡ ♦✉(❝♦♠❡) ♦❢ ✇✐♥♥✐♥❣ ❛♥❞ ♥♦( ✇✐♥♥✐♥❣ (❤❡ ❛✉❝(✐♦♥ ✇✐(❤ (❤✐) ❜✐❞✱
✇❤❡%❡ (❤❡ ❢♦%♠❡% ♦✉(❝♦♠❡) ♦❝❝✉%) ✇✐(❤ ♦❜❥❡❝(✐✈❡ ♣%♦❜❛❜✐❧✐(② µi✳ ❈♦♥❞✐(✐♦♥❛❧ ♦♥ ❤❛✈✐♥❣ (❤❡
❜✐❞ ❛❝❝❡♣(❡❞✱ (❤❡ ❧♦((❡%② ✐) %❡♣%❡)❡♥(❡❞ ❛) (❤❡ ♣ ♦.♣❡❝(
(V − βi− f, µi;−f, 1− µi)
✇❤✐❝❤ ✐) ❛ ♠✐①❡❞ ♣ ♦.♣❡❝(✱ ✐✳❡✳ ✐♥ ❝❛)❡ ♦❢ ✇✐♥♥✐♥❣✱ ②✐❡❧❞) (♦ ❛ ❣❛✐♥✱ ❛♥❞ ♦(❤❡%✇✐)❡ ❛ ❧♦))✳
❚❤❡ ♣%♦)♣❡❝( ✐) ❡✈❛❧✉❛(❡❞ ❛)
PTi(µi) = w+(µi)v(V − βi− f) + w−(1− µi)v(−f) ✭✸✳✹✳✶✮
✇❤❡%❡ v(x) ✐) (❤❡ ✈❛❧✉❡ ❢✉♥❝(✐♦♥✱ ✇❤✐❝❤ ✐) ❝♦♥❝❛✈❡ ❢♦% x > 0 ❛♥❞ ❝♦♥✈❡① ❢♦% x < 0✱ ✇✐(❤
v(x) > −v(−x) (♦ ❝❛♣(✉%❡ ❧♦)) ❛✈❡%)✐♦♥✳ ❲❡ ✇✐❧❧ ❜❡ ❢♦❧❧♦✇✐♥❣ (❤❡ ❢✉♥❝(✐♦♥❛❧ ❢♦%♠ ✉)❡❞ ✐♥
❚✈❡%)❦② ❛♥❞ ❑❛❤♥❡♠❛♥ ✭✶✾✾✷✮ ✐♥ (❤❡ ❛♥❛❧②)✐)✿
v(x) =
xα✐❢ x > 0
0 ✐❢x = 0
−λ(−x)α ✐❢ x < 0
✭✸✳✹✳✷✮
✇❤❡%❡ α ∈ (0, 1]✱ ❛♥❞ λ ≥ 1✳ ❙❡❝♦♥❞❧②✱ (❤❡ ♣%♦❜❛❜✐❧✐(② ✇❡✐❣❤(✐♥❣ ❢✉♥❝(✐♦♥) w+(p) ❛♥❞
w−(p) ❝❛♣(✉%❡ (❤❡ ♥♦(✐♦♥ ♦❢ ✏❞✐♠✐♥✐)❤✐♥❣ ♠❛%❣✐♥❛❧ )❡♥)✐(✐✈✐(②✑✿ ❢♦% )♠❛❧❧ ♣%♦❜❛❜✐❧✐(✐❡)✱ (❤❡②
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✸ ✼✾
✐♥❞✉❝❡ ❛ ❞✐)♣+♦♣♦+-✐♦♥❛-❡❧② ❤✐❣❤ ❞❡❝✐)✐♦♥ ✇❡✐❣❤- ✭w(p) > p ✇❤❡♥ ♣ )♠❛❧❧✮✱ ✇❤✐❧❡ ❧❛+❣❡
♣+♦❜❛❜✐❧✐-✐❡) ❛+❡ ✉♥❞❡+✲✇❡✐❣❤-❡❞✳ ❚❤✐) ✐❞❡❛ ✐) ❝❛♣-✉+❡❞ ✉)✐♥❣ -❤❡ ♦♥❡✕♣❛+❛♠❡-❡+ ❢✉♥❝-✐♦♥❛❧
❢♦+♠ ❞❡✈❡❧♦♣❡❞ ✐♥ ▲❛--✐♠♦+❡ ❡- ❛❧✳ ✭✶✾✾✷✮✿
w(p) =pγ
pγ + (1− p)γ✭✸✳✹✳✸✮
✇❤✐❝❤ ♥❡)-) ♣+♦❜❛❜✐❧✐-② ✇❡✐❣❤-✐♥❣ ❛❝❝♦+❞✐♥❣ -♦ ♦❜❥❡❝-✐✈❡ ♣+♦❜❛❜✐❧✐-✐❡) ❢♦+ -❤❡ ❝❛)❡ ♦❢ γ = 1✳
❋♦+ -+❛❝-❛❜✐❧✐-②✱ ✇❡ ✐♠♣♦)❡ -❤❡ ❛))✉♠♣-✐♦♥ ♦❢ ❡✢❡❝$✐♦♥✱ ♠❡❛♥✐♥❣ -❤❛- w+(p) = w−(p)✱
✐✳❡✳ ❣❛✐♥) ❛♥❞ ❧♦))❡) ❛+❡ )✉❜❥❡❝- -♦ -❤❡ )❛♠❡ ♣+♦❜❛❜✐❧✐-② ✇❡✐❣❤-✐♥❣✳
❚❤❡ ❛❧-❡+♥❛-✐✈❡ -♦ -❤❡ ♣+♦)♣❡❝- ♦❢ ❜✐❞❞✐♥❣ ✐) ❢♦+ ♣❧❛②❡+) -♦ +❡♠❛✐♥ ❛- -❤❡ +❡❢❡+❡♥❝❡ ♣♦✐♥-
✇✐-❤ ♣+♦❜❛❜✐❧✐-② ♦♥❡✱ ✇❤✐❝❤ ❤❛) ✈❛❧✉❡ v(0) = 0✳ ❆) ✉♥❞❡+ ❡①♣❡❝-❡❞ ✉-✐❧✐-②✱ -❤❡ ♣+✐♥❝✐♣❧❡ ✐) -♦
♠❛❦❡ ❜✐❞❞❡+) ✐♥❞✐✛❡+❡♥- ♦✈❡+ -❤❡✐+ ♣❛+-✐❝✐♣❛-✐♦♥ ✐♥ ❡❛❝❤ +♦✉♥❞ ♦♥ -❤❡ ❡J✉✐❧✐❜+✐✉♠ ♣❛-❤❀ -❤✐)
✐) ❛❝❤✐❡✈❡❞ -❤+♦✉❣❤ -❤❡ ❞❡-❡+♠✐♥❛-✐♦♥ ♦❢ ❛♥ ❛♣♣+♦♣+✐❛-❡ )❡J✉❡♥❝❡ ♦❢ ❤❛③❛+❞ +❛-❡)✳ ●✐✈❡♥ -❤❡
✐♥❞✐✛❡+❡♥❝❡ ♦❢ -❤❡ ♣❧❛②❡+)✱ ✇❡ ❛+❡ ❢+❡❡ -♦ )❡- -❤❡✐+ ♣+♦❜❛❜✐❧✐-② ♦❢ ❜✐❞❞✐♥❣ )♦ -❤❛- -❤❡ +❡J✉✐+❡❞
❤❛③❛+❞ +❛-❡) ❛+❡ ✐♠♣❧❡♠❡♥-❡❞✳
❚❤✐) ❧❡❛❞) -♦ -❤❡ ❢♦❧❧♦✇✐♥❣ ❞❡✜♥✐-✐♦♥ ❡J✉✐❧✐❜+✐✉♠✿
!♦♣♦$✐&✐♦♥ ✸✳✹✳✶✳ ❆♥ ❡)✉✐❧✐❜ ✐✉♠ ✉♥❞❡ ♣ ♦0♣❡❝$ $❤❡♦ ② ✐0 ❛ 0❡)✉❡♥❝❡ ♦❢ ❤❛③❛ ❞ ❛$❡0
0♦❧✈✐♥❣
(p
1− p
)γ
= λ
(f
v − βi− f
)α
✭✸✳✹✳✹✮
❢♦ ♦✉♥❞0 i = 1, . . . , i − 1✳ ❆❞❞✐$✐♦♥❛❧❧②✱ ✇❡ ❤❛✈❡ p(0) = 1 ❛♥❞ p(i) = 0 ❢♦ i ≥ i✳ ❚❤❡
❡)✉✐❧✐❜ ✐✉♠ ❝❛♥ ❜❡ 0✉♣♣♦ $❡❞ $❤ ♦✉❣❤ ❛ 0❡)✉❡♥❝❡ ♦❢ 0②♠♠❡$ ✐❝ ♠✐①❡❞ 0$ ❛$❡❣✐❡0✳
= ♦♦❢✳ ❆) ✐♥ -❤❡ ❡①♣❡❝-❡❞ ✉-✐❧✐-② ❝❛)❡✱ ❢♦+ ❛ ❜❡❤❛✈✐♦✉+❛❧ ❛❣❡♥- -♦ ❜❡ ✐♥❞✐✛❡+❡♥- ♦✈❡+ ❜✐❞❞✐♥❣
❛♥❞ ♥♦- ❜✐❞❞✐♥❣✱ ✇❡ ♠✉)- ❤❛✈❡
PTi(µ∗i ) = 0 ❢♦+ i = 0, . . . , I
❙✐♥❝❡ w(1) = 1✱ -❤❡ ❧❛)- +♦✉♥❞ ✐♥ ✇❤✐❝❤ ✐- ✐) ♣♦))✐❜❧❡ -♦ ✜♥❞ ❛♥ ✐♥-❡+✐♦+ ✇✐♥♥✐♥❣ ♣+♦❜❛❜✐❧✐-②
❝♦✐♥❝✐❞❡) ✇✐-❤ -❤❡ ❡①♣+❡))✐♦♥ ❞❡+✐✈❡❞ ✐♥ ♣+♦♣♦)✐-✐♦♥ ✸✳✸✳✶✳
◆♦✇✱ ❝♦♥)✐❞❡+ ✐♥-❡+✐♦+ +♦✉♥❞)✳ ❙♦❧✈✐♥❣ ❞✐+❡❝-❧② ❢♦+ -❤❡ ✐♥❞✐✛❡+❡♥❝❡ ❝♦♥❞✐-✐♦♥ ②✐❡❧❞)✿
(p
1− p
)γ
= λ
(f
v − βi− f
)α
✭✸✳✹✳✺✮
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✽✵ ❖❢ "❡♥♥✐❡& ❛♥❞ ")♦&♣❡❝-&✿ ❯♥❞❡)&-❛♥❞✐♥❣ ❇❡❤❛✈✐♦✉) ✐♥ "❡♥♥② ❆✉❝-✐♦♥&
❢♦$ ❛❧❧ i = 0, . . . , i− 1✳
❙✐♥❝❡ ♣❧❛②❡$/ ❛$❡ ✐♥❞✐✛❡$❡♥2 ❜❡2✇❡❡♥ 2❤❡ ♣$♦/♣❡❝2/✱ ❛/ ❜❡❢♦$❡✱ ✇❡ ❛$❡ ❢$❡❡ 2♦ ❛//✐❣♥ ❜✐❞❞✐♥❣
♣$♦❜❛❜✐❧✐2✐❡/ 2♦ ✐♥❞✐✈✐❞✉❛❧ ♣❧❛②❡$/ 2❤❛2 /✉♣♣♦$2 2❤❡ $❡:✉✐$❡❞ ❤❛③❛$❞ $❛2❡/✳
❖❜/❡$✈❡ 2❤❛2 2❤❡ $✐/❦✕♥❡✉2$❛❧ ❡:✉✐❧✐❜$✐✉♠ ❞❡$✐✈❡❞ ❛❜♦✈❡ ✐/ ♥❡/2❡❞ ❛/ ❛ /♣❡❝✐❛❧ ❝❛/❡ ♦❢
2❤❡ ♣$♦/♣❡❝2 2❤❡♦$② ♠♦❞❡❧ ✇❤❡♥ 2❤❡$❡ ✐/ ♥♦ ❧♦// ❛✈❡$/✐♦♥ ❛♥❞ 2❤❡ ❡①♣♦♥❡♥2/ ♦❢ ✈❛❧✉❡ ❛♥❞
♣$♦❜❛❜✐❧✐2② ✇❡✐❣❤2✐♥❣ ❢✉♥❝2✐♦♥ ❛$❡ ❡:✉❛❧✿
▲❡♠♠❛ ✸✳✹✳✶✳ ▲❡" λ = 1 ❛♥❞ α = γ✳ ❚❤❡♥✱ "❤❡ ❤❛③❛+❞ +❛"❡, ♦❢ "❤❡ ♣+♦,♣❡❝" "❤❡♦+② ♠♦❞❡❧
❝♦✐♥❝✐❞❡ ✇✐"❤ "❤❡ +✐,❦✕♥❡✉"+❛❧ ❜❡♥❝❤♠❛+❦
:+♦♦❢✳ ❚❤❡ $❡/✉❧2 ❢♦❧❧♦✇/ ❢$♦♠ ❞✐$❡❝2 /✉❜/2✐2✉2✐♦♥✳ ❲❡ ❤❛✈❡
p
1− p=
(f
V − βi− f
)
✭✸✳✹✳✻✮
p =f
V − βi✭✸✳✹✳✼✮
■♥2❡$❡/2 ♥♦✇ 2✉$♥/ 2♦ 2❤❡ :✉❡/2✐♦♥ ✐❢✱ 2❤$♦✉❣❤ /✉✐2❛❜❧❡ ♣❛$❛♠❡2❡$/✱ 2❤❡ ♣$♦/♣❡❝2 2❤❡♦$②
♠♦❞❡❧ ✐/ ❛❜❧❡ 2♦ ❡①♣❧❛✐♥ 2❤❡ /2②❧✐/❡❞ ❢❛❝2/ ♦❢ ♣❡♥♥② ❛✉❝2✐♦♥ ❜❡❤❛✈✐♦✉$ 2❤❛2 ❛$❡ ♦❜/❡$✈❡❞
❡♠♣✐$✐❝❛❧❧②✳ ❋✐$/2✱ ❝♦♥/✐❞❡$ 2❤❡ ❝❛/❡ ✇✐2❤♦✉2 ❧♦// ❛✈❡$/✐♦♥✿
▲❡♠♠❛ ✸✳✹✳✷✳ ▲❡" λ = 1✳ ■❢ γ < α✱+♦✉♥❞, ✇✐"❤ V −βi < 2f ❤❛✈❡ ❛ ♣♦,✐"✐✈❡ ❡①♣❡❝"❡❞ +❡"✉+♥
"♦ ❜✐❞❞✐♥❣❀ ❛♥❞ +♦✉♥❞, ✇✐"❤ V − βi > 2f ❤❛✈❡ ❛ ♥❡❣❛"✐✈❡ ❡①♣❡❝"❡❞ +❡"✉+♥ "♦ ❜✐❞❞✐♥❣
:+♦♦❢✳ ❚❤❡ ✐♠♣❧✐❝✐2 ❢✉♥❝2✐♦♥ ❢♦$ 2❤❡ ❡♥❞✐♥❣ ♣$♦❜❛❜✐❧✐2② ✐♥ 2❤✐/ ❝❛/❡ ✐/
(p
1− p
) γα
=
(f
v − βi− f
)
✭✸✳✹✳✽✮
❇② 2❤❡ $❡/✉❧2/ ♦❢ 2❤❡ ♣$❡✈✐♦✉/ /❡❝2✐♦♥✱ 2❤❡ $✐/❦✕♥❡✉2$❛❧ ❡♥❞✐♥❣ ♣$♦❜❛❜✐❧✐2✐❡/ ②✐❡❧❞ ❛ ③❡$♦
❡①♣❡❝2❡❞ $❡2✉$♥✳ ❚❤❡ 2❛/❦ ✐/ 2❤✉/ 2♦ ❝♦♠♣❛$❡ 2❤❡ /♦❧✉2✐♦♥/ ♦❢ 2❤❡ ♣$❡/❡♥2 ❡:✉❛2✐♦♥ 2♦
2❤♦/❡ ♦❢ ✸✳✹✳✻❀ ✇❤❡♥❡✈❡$ 2❤❡ p /♦❧✈✐♥❣ 2❤❡ ❝✉$$❡♥2 ❡:✉❛2✐♦♥ ✐/ ❜❡❧♦✇ 2❤❡ /♦❧✉2✐♦♥ ♦❢ ✸✳✹✳✻
✭pRN ✱ ❡:✉✐❧✐❜$✐✉♠ ♣$♦❜❛❜✐❧✐2② ♦❢ ✇✐♥♥✐♥❣ ✐/ ❧♦✇❡$ 2❤❛♥ ✉♥❞❡$ $✐/❦✕♥❡✉2$❛❧✐2②✱ ❛♥❞ /♦ ✐/ 2❤❡
❡①♣❡❝2❡❞ ✭♠♦♥❡2❛$②✮ $❡2✉$♥ 2♦ ❛ ❜✐❞✳
❋✐$/2✱ ❧❡2 V −βi = 2f ✳ ■♥ 2❤✐/ ❝❛/❡✱ p = pRN ✱ ❛♥❞ 2❤❡ ❡①♣❡❝2❡❞ $❡2✉$♥ 2♦ ❛ ❜✐❞ ✉♥❞❡$ N❚
❝♦✐♥❝✐❞❡/ ✇✐2❤ 2❤❡ ❡①♣❡❝2❡❞ $❡2✉$♥ 2♦ ❛ ❜✐❞ ✉♥❞❡$ ❘◆✳ ❙❡❝♦♥❞✱ ❧❡2 v− βi < 2f ✳ ■♥ 2❤✐/ ❝❛/❡✱
❢♦$ γ/α < 1✱ p > pRN ❜② /✐♠♣❧❡ ❛❧❣❡❜$❛✳ ❍❡♥❝❡✱ 2❤❡ ❡①♣❡❝2❡❞ $❡2✉$♥ 2♦ ❜✐❞❞✐♥❣ ✐/ ♣♦/✐2✐✈❡
✐♥ 2❤❡ ❝❛/❡ 2❤❛2 2❤❡ ✉2✐❧✐2② ♦❢ ✇✐♥♥✐♥❣ ✐/ ❧♦✇✳ ❋✐♥❛❧❧②✱ ✐❢ v − βi > 2f ✱ 2❤❡ ❡①♣❡❝2❡❞ $❡2✉$♥ 2♦
❜✐❞❞✐♥❣ ✐/ ♥❡❣❛2✐✈❡ ❛/ p < pRN ✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✸ ✽✶
❚❤✉%✱ ✉♥❞❡* ♣*♦%♣❡❝. .❤❡♦*②✱ .❤❡*❡ ❡①✐%.% ❛ ❝*✐.✐❝❛❧ *♦✉♥❞ i ✇❤❡*❡ .❤❡ ❡①♣❡❝.❡❞ *❡.✉*♥
.♦ ❜✐❞❞✐♥❣ ❝❤❛♥❣❡% %✐❣♥✳ ■♥ *♦✉♥❞% ❜❡❢♦*❡ i✱ .❤❡ ♣♦.❡♥.✐❛❧ ❣❛✐♥% ❢*♦♠ ✇✐♥♥✐♥❣ ❛*❡ ❤✐❣❤✳
❊<✉✐❧✐❜*✐✉♠ *❡<✉✐*❡% ❛ ❧♦✇ ♣*♦❜❛❜✐❧✐.② ♦❢ ✇✐♥♥✐♥❣✱ ✇❤✐❝❤ ✐% ✐♥ .❤❡ *❡❣✐♦♥ ✇❤❡*❡ .❤❡ ❛❣❡♥.
♦✈❡*✇❡✐❣❤.% ♣*♦❜❛❜✐❧✐.✐❡%✳ ❍❡♥❝❡✱ .❤❡ ❡①♣❡❝.❡❞ *❡.✉*♥ .♦ ❜✐❞❞✐♥❣ ✐% ♥❡❣❛.✐✈❡✳ ■♥ ❧❛.❡ *♦✉♥❞%✱
.❤❡ ❣❛✐♥ ❢*♦♠ ✇✐♥♥✐♥❣ ✐% %♠❛❧❧✱ ❛♥❞ ❡<✉✐❧✐❜*✐✉♠ *❡<✉✐*❡% ❛ ♣*♦❜❛❜✐❧✐.② ♦❢ ✇✐♥♥✐♥❣✳ ❇✉.
❤✐❣❤ ♣*♦❜❛❜✐❧✐.✐❡% ❛*❡ ✉♥❞❡*✲✇❡✐❣❤.❡❞ ❜② ♦✉* ❜❡❤❛✈✐♦✉*❛❧ ❛❣❡♥.%✱ ❛♥❞ .❤✉% .❤❡ ♠♦♥❡.❛*②
❡①♣❡❝.❡❞ *❡.✉*♥ .♦ ❜✐❞❞✐♥❣ ✐% ♣♦%✐.✐✈❡✳ ◗✉❛❧✐.❛.✐✈❡❧②✱ ✇❡ ❝❛♥ .❤✉% ❝❛♣.✉*❡ %.②❧✐%❡❞ ❢❛❝. ✹✳
◗✉❛♥.✐.❛.✐✈❡❧②✱ .❤❡ ♠♦❞❡❧ ✇✐.❤♦✉. ❧♦%% ❛✈❡*%✐♦♥ ✐% ❧❡%% %✉❝❝❡%%❢✉❧✿ ❢♦* ❡①❛♠♣❧❡✱ ✐♥ .❤❡ ❝❛%❡
♦❢ ❛ ✜①❡❞✕♣*✐❝❡ ❛✉❝.✐♦♥ ✇✐.❤ ❜✐❞❞✐♥❣ ❢❡❡ ●❇G ✵✳✺✵✱ ✇❡ ✇♦✉❧❞ ❤❛✈❡ ♣♦%✐.✐✈❡ ❡①❝❡%% *❡✈❡♥✉❡
✇❤❡♥❡✈❡* .❤❡ ✈❛❧✉❡ ♦❢ .❤❡ ♦❜❥❡❝. ❡①❝❡❡❞% ●❇G ✶✳✵✵✳ ❇✉. .❤✐% ❝✉.✲♦✛ ✐% ❢❛* ❧♦✇❡* .❤❛♥
❞✐%❝✉%%❡❞ ✐♥ %.②❧✐%❡❞ ❢❛❝. ✸✳ ❚❤✉%✱ .❤❡ ♠♦❞❡❧ ♣*❡❞✐❝.% ❡①❝❡%% *❡✈❡♥✉❡✱ ❜✉. ✐♥ .♦♦ ♠❛♥② ❝❛%❡%
❝♦♠♣❛*❡❞ .♦ ✇❤❛. ✇❡ ♦❜%❡*✈❡ ✐♥ .❤❡ ❞❛.❛✳
◆♦✇✱ ❝♦♥%✐❞❡* .❤❡ ❧♦%% ❛✈❡*%✐♦♥ ♣❛*❛♠❡.❡* λ✳ ■♥ ❣❡♥❡*❛❧✱ ❧♦%% ❛✈❡*%✐♦♥ ♠❛❦❡% .❤❡ ♣*♦%♣❡❝.
♦❢ ❜✐❞❞✐♥❣ ❧❡%% ❛..*❛❝.✐✈❡ ❢♦* .❤❡ ❛❣❡♥.✳ ❚❤✉%✱ ❛❣❡♥.% ✇✐❧❧ *❡<✉✐*❡ ❤✐❣❤❡* ♣*♦❜❛❜✐❧✐.✐❡% ♦❢
✇✐♥♥✐♥❣ .♦ ❜❡ ✐♥❞✐✛❡*❡♥. ❛❜♦✉. ♣❛*.✐❝✐♣❛.✐♥❣ ✐♥ .❤❡ ❛✉❝.✐♦♥❀ .❤✐% *❡%✉❧.% ✐♥ ❧♦✇❡* *❡✈❡♥✉❡ ❢♦*
.❤❡ %❡❧❧❡*✳ ❚♦ ✜♥❞ .❤❡ ❝*✐.✐❝❛❧ *♦✉♥❞ ✇❤❡*❡ ❡①♣❡❝.❡❞ *❡✈❡♥✉❡ ❝❤❛♥❣❡% %✐❣♥✱ ✇❡ ❝♦♠♣✉.❡
(p
1− p
) γα
λ−1α =
(p
1− p
)
=
(f
v − βi− f
)
✭✸✳✹✳✾✮
❆❢.❡* %♦♠❡ ❛❧❣❡❜*❛✱ .❤✐% ②✐❡❧❞%
v − βi = f(
1 + λ1
α−γ
)
✭✸✳✹✳✶✵✮
❲❤✐❝❤ ✐% ✐♥❝*❡❛%✐♥❣ ✐♥ λ✱ ❛% ❡①♣❡❝.❡❞✳
❚♦ ✜① ✐❞❡❛%✱ ❝♦♥%✐❞❡* ❛❣❛✐♥ ❛ ♥✉♠❡*✐❝❛❧ ❡①❛♠♣❧❡ ✇✐.❤ ❛ ✜♥❛❧✕♣*✐❝❡ ♦✛ ❛✉❝.✐♦♥✳ ▲❡.
α = 1✱ %♦ .❤❡ ❛❣❡♥. ✐% *✐%❦✕♥❡✉.*❛❧✱ ❛♥❞ ✜① λ = 2.25 ✐♥ ❧✐♥❡ ✇✐.❤ ❚✈❡*%❦② ❛♥❞ ❑❛❤♥❡♠❛♥
✭✶✾✾✷✮✳ ❚❤❡♥✱ ❣✐✈❡♥ .❤❡ ❜✐❞❞✐♥❣ ❢❡❡ ♦❢ ●❇G ✵✳✺✵✱ ❛ ♣*♦❜❛❜✐❧✐.② ✇❡✐❣❤.✐♥❣ ♣❛*❛♠❡.❡* γ = 0.80
♣*❡❞✐❝.% .❤❡ ❜*❡❛❦✲❡✈❡♥ ✈❛❧✉❡ ♦❢ .❤❡ ❣♦♦❞ v = 29.33✱ ✇❤✐❝❤ ✐% ❝❤♦%❡♥ .♦ ♠❛.❝❤ %.②❧✐%❡❞ ❢❛❝.
✷ <✉❛♥.✐.❛.✐✈❡❧②✳ ❆♣♣❧②✐♥❣ .❤❡ %❛♠❡ ♣❛*❛♠❡.❡*% .♦ ♦❜.❛✐♥ .❤❡ ❡①♣❡❝.❡❞ *❡✈❡♥✉❡ ❢♦* ❛♥
❛✉❝.✐♦♥ ♦❢ .❤❡ ◆✐❦♦♥ ❉✾✵✱ ✇✐.❤ *❡.❛✐❧ ♣*✐❝❡ ●❇G ✼✾✶✳✹✾✱ ②✐❡❧❞% ❛ *❡✈❡♥✉❡ ♣*❡❞✐❝.✐♦♥ ●❇G
✶✽✵✾✳✸✸✳ ❚❤✐% ❝♦♠♣❛*❡% .♦ ❛♥ ♦❜%❡*✈❡❞ ✈❛❧✉❡ ♦❢ ●❇G ✶✾✾✺✳✻✵ ✐♥ .❤❡ %❛♠♣❧❡ ✭%.②❧✐%❡❞ ❢❛❝.
✶✮✳ ▼♦*❡♦✈❡*✱ ❝♦♥%✐❞❡* .❤❡ ◆✐♥.❡♥❞♦ ❲✐✐ ❡①❛♠♣❧❡ ❢*♦♠ %.②❧✐%❡❞ ❢❛❝. ✹✳ ❙♦❧✈✐♥❣ ❡<✉❛.✐♦♥
✸✳✹✳✶✵ ❢♦* .❤❡ ❝*✐.✐❝❛❧ *♦✉♥❞ ✇❤❡*❡ ❡①♣❡❝.❡❞ *❡.✉*♥ .♦ ❜✐❞❞✐♥❣ ✐% ♣♦%✐.✐✈❡ ②✐❡❧❞% i = 1506.67✳
❚❤✐% ✐% ❤✐❣❤❡* .❤❛♥ .❤❡ ❡♠♣✐*✐❝❛❧ ✈❛❧✉❡ ✭✶✶✽✵✮✱ ❜✉. ❛. ❧❡❛%. ❛♥ ❛♣♣*♦①✐♠❛.✐♦♥✳ ❚❤✉%✱ ❡✈❡♥
✇✐.❤ ✏♠❛♥✉❛❧ ❝❛❧✐❜*❛.✐♦♥✑✱ ✐. ❛♣♣❡❛*% .❤❛. .❤❡ ♠♦❞❡❧ ❝❛♥ ♠❛.❝❤ %❡✈❡*❛❧ %.②❧✐%❡❞ ❢❛❝.% ♦❢ .❤❡
❞❛.❛%❡.✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✽✷ ❖❢ "❡♥♥✐❡& ❛♥❞ ")♦&♣❡❝-&✿ ❯♥❞❡)&-❛♥❞✐♥❣ ❇❡❤❛✈✐♦✉) ✐♥ "❡♥♥② ❆✉❝-✐♦♥&
✸✳✺ ❊$%✐♠❛%✐♦♥
❚❤❡ %❤❡♦'✐❡) ♦❢ ❜✐❞❞❡' ❜❡❤❛✈✐♦✉'✱ ❜♦%❤ ✉♥❞❡' ❡①♣❡❝%❡❞ ✉%✐❧✐%② ❛♥❞ ♣'♦)♣❡❝% %❤❡♦'②✱ ❣❡♥❡'❛%❡
♣'❡❞✐❝%✐♦♥) '❡❣❛'❞✐♥❣ %❤❡ ❤❛③❛#❞ #❛%❡✱ ✐✳❡✳ %❤❡ ♣'♦❜❛❜✐❧✐%② %❤❛% ❛♥ ❛✉❝%✐♦♥ ✇✐❧❧ ❡♥❞ ✐♥ ❛
❣✐✈❡♥ '♦✉♥❞✱ ❞❡♣❡♥❞✐♥❣ ♦♥ %❤❡ ♣❛'❛♠❡%❡')✳ ❚❤✐) )✉❣❣❡)%) ❛ ♠❛①✐♠✉♠ ❧✐❦❡❧✐❤♦♦❞ ❛♣♣'♦❛❝❤
%♦ ♠♦❞❡❧ ❡)%✐♠❛%✐♦♥✳ ❚❤✉)✱ ❧❡% X ❞❡♥♦%❡ %❤❡ '❛♥❞♦♠ ✈❛'✐❛❜❧❡ %❤❛% ❛ ♣❡♥♥② ❛✉❝%✐♦♥ ✇✐❧❧ ❡♥❞
✐♥ '♦✉♥❞ x✳ ❋♦' %❤✐) %♦ ♦❝❝✉'✱ %❤❡ ❛✉❝%✐♦♥ %❤❡'❡ ♠✉)% ❤❛✈❡ ❜❡❡♥ ♥♦ ❤❛③❛'❞ ✐♥ ❛♥② ♣'❡✈✐♦✉)
'♦✉♥❞ ❛♥❞ ❤❛③❛'❞ ✐♥ '♦✉♥❞ x✱ %❤✉) %❤❡ ♣'♦❜❛❜✐❧✐%② ♦❢ %❤❡ ❡✈❡♥% ✐) ❣✐✈❡♥ ❜②
f(x; θ) = h(i; θ)i−1∏
j=1
(1− h(j; θ)) ✭✸✳✺✳✶✮
❚❤❡ ❤❛③❛'❞ '❛%❡ ✐) ✐♠♣❧✐❡❞ ❜② %❤❡ ❡C✉✐❧✐❜'✐✉♠ )%'❛%❡❣✐❡)✿
h(i) =N−1∏
j=0
(1− σj) ✭✸✳✺✳✷✮
■♥ ❛ )❛♠♣❧❡ ♦❢ ♦❜)❡'✈❛%✐♦♥) o = 1, . . . , O✱ ✇❤❡'❡ oj ❞❡♥♦%❡) %❤❡ ❞✉'❛%✐♦♥ ♦❢ ❛✉❝%✐♦♥ ❥ ✐♥
%❤❡ )❛♠♣❧❡✱ %❤❡ ❧♦❣ ❧✐❦❡❧✐❤♦♦❞ ❢✉♥❝%✐♦♥ ✐) %❤❡♥ ❣✐✈❡♥ ❜②
llf(θ) =O∑
o=1
log(f(oi; θ)) ✭✸✳✺✳✸✮
❙✐♥❝❡ ❝❧♦)❡❞ ❢♦'♠ ❡①♣'❡))✐♦♥) ❛'❡ ♥♦% ❛✈❛✐❧❛❜❧❡ ❢♦' f(x; θ)✱ ♦♣%✐♠✐③❛%✐♦♥ ♠✉)% ❜❡ ❝❛''✐❡❞
♦✉% ♥✉♠❡'✐❝❛❧❧②✳ ❚❤✐) ②✐❡❧❞) ❡)%✐♠❛%❡) θ ❢♦' ❡❛❝❤ ♦❢ %❤❡ ♠♦❞❡❧) ❝♦♥)✐❞❡'❡❞✳ ❋♦' ✐♥❢❡'❡♥❝❡✱
✇❡ '❡❧② ♦♥ %❤❡ )%❛♥❞❛'❞ ♣'♦♣❡'%② %❤❛%
√N(θ − θ)→ N(0, I(θ)−1) ✭✸✳✺✳✹✮
✐♥ )✉✣❝✐❡♥%❧② ❧❛'❣❡ )❛♠♣❧❡)✱ ✇❤❡'❡ I(θ) ✐) %❤❡ ❋✐)❤❡' ✐♥❢♦'♠❛%✐♦♥ ♠❛%'✐①✳ ❚❤✉)✱ %❤❡
❡)%✐♠❛%♦' ❤❛) ❛ )%❛♥❞❛'❞ )❛♠♣❧✐♥❣ ❞✐)%'✐❜✉%✐♦♥ ❛♥❞ ✉)✉❛❧ )✐❣♥✐✜❝❛♥❝❡ %❡)%) ❝❛♥ ❜❡ ❝❛''✐❡❞
♦✉%✳ ❚❤❡)❡ ♣'♦❝❡❞✉'❡) ✇❡ ✐♠♣❧❡♠❡♥%❡❞ ✐♥ ●◆❯ ❘✳
✸✳✻ ❘❡$✉❧%$
❚❤✐) )❡❝%✐♦♥ ❛♣♣❧✐❡) %❤❡ ♠❡%❤♦❞) ♦❢ )❡❝%✐♦♥ ✸✳✺ %♦ %❤❡ ❞❛%❛✳ ❋♦' ❡)%✐♠❛%✐♦♥✱ ❛ )✉❜✕)❛♠♣❧❡ ✇❛)
✉)❡❞✳ ❋✐')%✱ %❤❡ ◆✐♥%❡♥❞♦ ❲✐✐ ✇❛) ✐♥❝❧✉❞❡❞ )✐♥❝❡ ✐% ✐) %❤❡ ♠♦)% ❢'❡C✉❡♥%❧② )♦❧❞ ♣'♦❞✉❝% ✐♥ %❤❡
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✸ ✽✸
❞❛$❛%❡$ ✭◆❂✼✷✺✽ ♦❜%❡/✈❛$✐♦♥%✮✱ ❛♥❞ ♦❜%❡/✈❛$✐♦♥% ❛/❡ ❛✈❛✐❧❛❜❧❡ ❢♦/ ❜♦$❤ $❤❡ ✶✵ ❝❡♥$ ❛♥❞ ♦♥❡✕
❝❡♥$ ♣/✐❝❡ ✐♥❝/❡♠❡♥$ ❢♦/♠❛$✳ ❙❡❝♦♥❞✱ $❤❡ ❧❛②$%❛%✐♦♥ ✸ ✇❛% ✐♥❝❧✉❞❡❞✱ ♦♥ $❤❡ ❣/♦✉♥❞% ♦❢ ❜❡✐♥❣
❛ ❝❧♦%❡ %✉❜%$✐$✉$❡ ♣/♦❞✉❝$ ❛♥❞ %✐♠✐❧❛/❧② ❛ ❧❛/❣❡ ♥✉♠❜❡/ ♦❢ ❛✉❝$✐♦♥% ✭◆❂✶✼✼✺✮ ❜❡✐♥❣ ✐♥❝❧✉❞❡❞
✐♥ $❤❡ %❛♠♣❧❡✳ ❚❤❡ ✉%❡ ♦❢ ❛ %✉❜✕%❛♠♣❧❡ ✇❛% ♥❡❝❡%%✐$❛$❡❞ ❜② ❝♦♠♣✉$❛$✐♦♥❛❧ ❝♦♥%$/❛✐♥$%✳
❲❡ ♣/♦❝❡❡❞ ❜② ❞❡✈❡❧♦♣✐♥❣ $❤❡ /❡%✉❧$% ❢♦/ $❤❡ /✐%❦✕❧♦✈✐♥❣ ❝❛%❡ ✭%✉❜%❡❝$✐♦♥ ✸✳✻✳✶✮✳ ❚❤❡♥✱
%✉❜%❡❝$✐♦♥ ✸✳✻✳✷ $✉/♥% $♦ ♣/♦%♣❡❝$ $❤❡♦/②✳
✸✳✻✳✶ ❘✐&❦ ❆))✐)✉)❡&
❊%$✐♠❛$❡% ❢♦/ $❤❡ ❈❆❘❆ ♣❛/❛♠❡$❡/ α ❛/❡ ♣/♦✈✐❞❡❞ ✐♥ ✜❣✉/❡ ✸✳✼✳ ❋♦/ ❜♦$❤ ♣/♦❞✉❝$%✱ $❤❡
❝♦❡✣❝✐❡♥$% ❛/❡ ♣/❡❝✐%❡❧② ❡%$✐♠❛$❡❞✱ ❛% ✐♥❞✐❝❛$❡❞ ❜② %✐❣♥✐✜❝❛♥❝❡ ❛$ $❤❡ ✶✪ ❧❡✈❡❧✳ ■♥ $❤❡
❝❛%❡ ♦❢ $❤❡ ◆✐♥$❡♥❞♦ ❲✐✐✱ $❤❡ ❡%$✐♠❛$❡❞ /✐%❦✕❧♦✈❡ ♣❛/❛♠❡$❡/ −0.012 ✐% ✈❡/② ♠✐❧❞❀ ❢♦/ $❤❡
R❧❛②%$❛$✐♦♥ ✸✱ ❛♥ ❡✈❡♥ ❧♦✇❡/ ✈❛❧✉❡ ♦❢ −0.006 ✐% ♦❜$❛✐♥❡❞✳
✭✶✮ ✭✷✮
❙❛♠♣❧❡ ❲✐✐ R❙✸
α −0.012∗∗∗ −0.006∗∗∗✭✵✳✵✵✵✶✮ ✭✵✳✵✵✵✷✮
✲✷❧♦❣▲ ✶✵✹✻✹✺✳✸ ✷✼✷✸✻✳✸✺
◆ ✼✷✺✽ ✶✼✼✺
❋✐❣✉/❡ ✸✳✼✿ ❊%$✐♠❛$❡ ♦❢ ❘✐%❦✕❆$✐$✉❞❡% ▼♦❞❡❧
■♥ ❜♦$❤ ❝❛%❡%✱ $❤❡ ♥❡❣❛$✐✈❡ ✈❛❧✉❡% ♦❢ α ✐♥❞✐❝❛$❡ /✐%❦✕❧♦✈✐♥❣ ♣/❡❢❡/❡♥❝❡%✱ ❛♥❞ ❛/❡ $❤✉%
X✉❛❧✐$❛$✐✈❡❧② ❝♦♥%✐%$❡♥$ ✇✐$❤ $❤❡ $❤❡♦/② ❞❡✈❡❧♦♣❡❞ ✐♥ %❡❝$✐♦♥ ✸✳✸✳ ❍♦✇❡✈❡/✱ ❡%♣❡❝✐❛❧❧② ✐♥ $❤❡
❝❛%❡ ♦❢ $❤❡ R❧❛②%$❛$✐♦♥ ✸✱ $❤❡ ❜✐❞❞❡/%✬ $❛%$❡ ❢♦/ /✐%❦ ✐% /❛$❤❡/ ♠✐❧❞✿ ❛$ ❛ /✐%❦✕❧♦✈❡ ♦❢ ♦♥❧②
−0.006✱ ♣/❡❢❡/❡♥❝❡% ❛/❡ ✈❡/② ❝❧♦%❡ $♦ /✐%❦✕♥❡✉$/❛❧✐$② ✭✇❤✐❝❤ ♦❜$❛✐♥% ❛% α → 0✮✳ ❙❡❝♦♥❞❧②✱
$❤❡ ✐♥%$❛❜✐❧✐$② ♦❢ ♣❛/❛♠❡$❡/% ❜❡$✇❡❡♥ $❤❡ ♣/♦❞✉❝$% ♠❛② ❣✐✈❡ /✐%❡ $♦ %♦♠❡ ❝♦♥❝❡/♥✳
❚❤❡%❡ ❡%$✐♠❛$❡% ❛❣/❡❡ ✇✐$❤ R❧❛$$ ❡$ ❛❧✳ ✭✷✵✶✸✮✱ ✇❤✐❝❤ ✐% $♦ ❜❡ ❡①♣❡❝$❡❞ ❣✐✈❡♥ $❤❡ %✐♠✐❧❛/✐$②
♦❢ $❤❡ ❞❛$❛%❡$✳ ❙❡❝♦♥❞❧②✱ $❤❡✐/ ❡%$✐♠❛$❡% ❛/❡ ❛❧%♦ /❛$❤❡/ ✉♥%$❛❜❧❡ ❜❡$✇❡❡♥ ❛✉❝$✐♦♥%✱ /❛♥❣✐♥❣
❢/♦♠ ❢/♦♠ −0.0001 $♦ −0.09 ❢♦/ $❤❡ /✐%❦✕❧♦✈❡ ♣❛/❛♠❡$❡/ α✳ ❏✉❧❧✐❡♥ ❛♥❞ ❙❛❧❛♥✐] ✭✷✵✵✵✮
❡%$✐♠❛$❡ α = −0.055 ❢/♦♠ $❤❡ ❤♦/%❡ ❜❡$$✐♥❣ ❞❛$❛%❡$
✻
✳ ■♥ ❝♦♠♣❛/✐%♦♥✱ $❤❡ ❡%$✐♠❛$❡❞ ❞❡✈✐❛$✐♦♥
❢/♦♠ /✐%❦✕♥❡✉$/❛❧✐$② %❡❡♠% $♦ ❜❡ ♠✐♥♦/✳
✻
❙✐♥❝❡ %❤❡② ❞♦ ♥♦% ♦❜+❡,✈❡ %❤❡ +%❛❦❡ +✐③❡ ✭a ✐♥ %❤❡✐, ♥♦%❛%✐♦♥✮ %❤❡ ♣❛,❛♠❡%❡, α ✐+ ♥♦% ✐❞❡♥%✐✜❡❞✳ ❚❤❡
,❡♣♦,%❡❞ ❡+%✐♠❛%❡ ✐+ ❢♦, ❛ ✉♥✐% +%❛❦❡
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✽✹ ❖❢ "❡♥♥✐❡& ❛♥❞ ")♦&♣❡❝-&✿ ❯♥❞❡)&-❛♥❞✐♥❣ ❇❡❤❛✈✐♦✉) ✐♥ "❡♥♥② ❆✉❝-✐♦♥&
✸✳✻✳✷ $%♦'♣❡❝+ ❚❤❡♦%②
❚✉$♥✐♥❣ (♦ (❤❡ ♣$♦-♣❡❝( (❤❡♦$② ♠♦❞❡❧✱ ✜❣✉$❡ ✸✳✽ ♣$♦✈✐❞❡- (❤❡ $❡-✉❧(-✳ ❋♦$ (❤❡ ❲✐✐ ❞❛(❛-❡(✱
❛❧❧ ❝♦❡✣❝✐❡♥(- ❛$❡ ♣$❡❝✐-❡❧② ❡-(✐♠❛(❡❞ ❛♥❞ -✐❣♥✐✜❝❛♥( ❛( (❤❡ ✶✪ ❧❡✈❡❧✳ ❯♥❢♦$(✉♥❛(❡❧②✱ (❤❡
-♠❛❧❧❡$ @❧❛②-(❛(✐♦♥ ✸ ❞❛(❛-❡( ②✐❡❧❞- ❧❡-- ♣$❡❝✐-❡ ❡-(✐♠❛(❡-✱ ✇✐(❤ ♦♥❧② ♦♥❡ ♣❛$❛♠❡(❡$ -✐❣♥✐✜✲
❝❛♥( ❛( (❤❡ ✶✵✪ ❧❡✈❡❧✳ ❚❤✐- ♠❛② ❜❡ ❛(($✐❜✉(❡❞ (♦ (❤❡ ❢❛❝( (❤❛( (❤❡ ♠♦$❡ ❝♦♠♣❧❡① ♠♦❞❡❧✱ ✇✐(❤
❢❡✇❡$ ❞❡❣$❡❡- ♦❢ ❢$❡❡❞♦♠ ❝♦♠♣❛$❡❞ (♦ (❤❡ $✐-❦✕❧♦✈✐♥❣ ❝❛-❡✱ ♠❛❦❡- $❛(❤❡$ -($♦♥❣ ❞❡♠❛♥❞- ♦♥
-❛♠♣❧❡ -✐③❡ ❢♦$ ❡-(✐♠❛(✐♦♥✳ ❘❡❣❛$❞❧❡--✱ (❤❡ ❡-(✐♠❛(❡❞ ✈❛❧✉❡- ♦❢ (❤❡ ♣❛$❛♠❡(❡$- ❛$❡ ❝❧♦-❡ ❢♦$
❜♦(❤ -✉❜✕-❛♠♣❧❡-✳
✭✶✮ ✭✷✮
❙❛♠♣❧❡ ❲✐✐ @❙✸
α 0.6765∗∗∗ 0.6639∗
✭✵✳✷✻✺✵✮ ✭✵✳✹✽✼✹✮
γ 0.4912∗∗∗ 0.4334∗
✭✵✳✶✾✷✻✮ ✭✵✳✸✶✼✷✮
λ 1.83639∗∗∗ ✷✳✽✾✹✻
✭✵✳✹✹✽✼✮ ✭✷✳✸✶✵✼✮
✲✷❧♦❣▲ ✶✵✹✾✶✼ ✷✼✷✼✵✳✺✼
◆ ✼✷✺✽ ✶✼✼✺
❋✐❣✉$❡ ✸✳✽✿ ❊-(✐♠❛(❡- ♦❢ @$♦-♣❡❝( ❚❤❡♦$② ▼♦❞❡❧
◗✉❛❧✐(❛(✐✈❡ ❋✐(✿ ❚❤❡ ❡-(✐♠❛(❡❞ ♣❛$❛♠❡(❡$- ❛$❡ ❝♦♥-✐-(❡♥( ✇✐(❤ (❤❡ (❤❡♦$② ❞❡✈❡❧♦♣❡❞ ✐♥ -❡❝✲
(✐♦♥ ✸✳✹✿
✶✳ α < 1✿ ❱❛❧✉❡ ❢✉♥❝(✐♦♥ ❤❛- ❞✐♠✐♥✐-❤✐♥❣ ♠❛$❣✐♥❛❧ -❡♥-✐(✐✈✐(② ♦✈❡$ ❣❛✐♥-✳ ❆- $❡Z✉✐$❡❞✱
(❤❡② ❡①❤✐❜✐( $✐-❦✕❛✈❡$-✐♦♥ ♦✈❡$ ❣❛✐♥- $✐-❦✕❧♦✈❡ ♦✈❡$ ❧♦--❡-✳
✷✳ γ < 1✿ ▲♦✇ ♣$♦❜❛❜✐❧✐(✐❡- ❛$❡ ♦✈❡$✇❡✐❣❤(❡❞ ❛♥❞ ❧❛$❣❡ ♣$♦❜❛❜✐❧✐(✐❡- ❛$❡ ✉♥❞❡$✇❡✐❣❤(❡❞
✸✳ λ > 1✿ ▲♦--❡- ❧♦♦♠ ❧❛$❣❡$ (❤❛♥ ❣❛✐♥-✱ -♦ (❤❡ ♣$❡❢❡$❡♥❝❡- ❡①❤✐❜✐( ❧♦--✕❛✈❡$-✐♦♥
◗✉❛♥(✐(❛(✐✈❡❧②✱ (❤❡ ❡-(✐♠❛(❡- ❢♦$ $✐-❦✕❛✈❡$-✐♦♥ ✭α = 0.67 ❛♥❞ 0.66 $❡-♣❡❝(✐✈❡❧②✮ ✐♥❞✐❝❛(❡
-✉❜-(❛♥(✐❛❧ ❞✐♠✐♥✐-❤✐♥❣ ♠❛$❣✐♥❛❧ -❡♥-✐(✐✈✐(②✳ ■♥ ❚✈❡$-❦② ❛♥❞ ❑❛❤♥❡♠❛♥ ✭✶✾✾✷✮✱ (❤❡ ❝♦$$❡✲
-♣♦♥❞✐♥❣ ♣❛$❛♠❡(❡$ ✇❛- ❡-(✐♠❛(❡❞ ❛( ✵✳✽✽ ❢♦$ (❤❡ ♠❡❞✐❛♥ ❡①♣❡$✐♠❡♥(❛❧ -✉❜❥❡❝(✳ ■♥ ❝♦♥($❛-(✱
(❤❡ ❞❡❣$❡❡ ♦❢ ❧♦-- ❛✈❡$-✐♦♥ ❛♣♣❡❛$- (♦ ❜❡ -♦♠❡✇❤❛( ✇❡❛❦❡$ (❤❛♥ ✐♥ ❡①♣❡$✐♠❡♥(❛❧ -(✉❞✐❡-✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✸ ✽✺
■♥ $❤❡ ❲✐✐ ❞❛$❛+❡$✱ λ = 1.83 ✐+ ❡+$✐♠❛$❡❞✱ ❛+ ♦♣♣♦+❡❞ $♦ λ = 2.25 ❢1♦♠ ❚✈❡1+❦② ❛♥❞ ❑❛❤✲
♥❡♠❛♥ ✭✶✾✾✷✮✳ ❆+ ❇❛1❜❡1✐+ ✭✷✵✶✷❛✮ ❡♠♣❤❛+✐+❡+✱ $❤❡ ❞❡❣1❡❡ ♦❢ ❧♦++ ❛✈❡1+✐♦♥ ♠❛② ❞❡♣❡♥❞
♦♥ $❤❡ ❝♦♥$❡①$ ♦❢ ❞❡❝✐+✐♦♥ ♣1♦❜❧❡♠❀ ✐$ ✐+ 1❡❛+♦♥❛❜❧❡ $♦ ❜❡❧✐❡✈❡ $❤❛$ ✭+❡❧❢✕+❡❧❡❝$❡❞✮ ♣❛1$✐❝✐✲
♣❛♥$+ ✐♥ $❤❡ ♣❡♥♥② ❛✉❝$✐♦♥✱ ✇❤♦ ❛1❡ ✐♥❝❧✐♥❡❞ $♦ ❣❛♠❜❧❡✱ ❤❛✈❡ ❧♦✇❡1 $❤❛♥ ♠❡❞✐❛♥ ❧♦++ ❛✈❡1+✐♦♥✳
!♦❜❛❜✐❧✐'② ❲❡✐❣❤'✐♥❣ ✿ K1♦❜❛❜✐❧✐$② ✇❡✐❣❤$✐♥❣ ✐+ $❤❡ ❢✉♥❞❛♠❡♥$❛❧ ✐♥❣1❡❞✐❡♥$ ♦❢ $❤❡ ♣1♦+♣❡❝$
$❤❡♦1② ♠♦❞❡❧ $♦ ❡①♣❧❛✐♥ ❡①❝❡++ 1❡✈❡♥✉❡ ✭✇❤❡1❡ ✐$ ❛1✐+❡+✮✳ ❆$ ❛♥ ❡+$✐♠❛$❡ ♦❢ γ = 0.49 ✭❲✐✐
❞❛$❛+❡$❀ γ = 0.43 ❢♦1 K❙✸✮✱ ❛ +$1♦♥❣ ❞❡❣1❡❡ ♦❢ ♣1♦❜❛❜✐❧✐$② ✇❡✐❣❤$✐♥❣ ✐+ ✐♥❞✐❝❛$❡❞ ✐♥ $❤❡
+❛♠♣❧❡✳ ❋♦1 ❡①❛♠♣❧❡✱ ❛ ♣❤②+✐❝❛❧ ♣1♦❜❛❜✐❧✐$② ♦❢ ✶✪ ✇♦✉❧❞ ❤❛✈❡ ❛ ❞❡❝✐+✐♦♥ ✇❡✐❣❤$ ❝❧♦+❡ $♦ ✶✵✪
✭w(0.01) = 0.09✮✳
❙❡❧❢✕+❡❧❡❝$✐♦♥ ✐♥$♦ $❤❡ ♣❡♥♥② ❛✉❝$✐♦♥ ♠❛② ❡①♣❧❛✐♥ ✇❤② ♣1♦❜❛❜✐❧✐$② ✇❡✐❣❤$✐♥❣ ✐+ +♦ +$1♦♥❣
✐♥ $❤❡ ❞❛$❛+❡$✳ ❚❤❡ ♠❛❥♦1✐$② ♦❢ ♦❜+❡1✈❛$✐♦♥+ ❝♦♥$❛✐♥ 1♦✉♥❞+ ✇❤❡1❡ $❤❡ ♣❤②+✐❝❛❧ ♣1♦❜❛❜✐❧✐$②
♦❢ ✇✐♥♥✐♥❣ ✐+ ❧♦✇ ❛♥❞ 1❡$✉1♥+ ❛1❡ ❤✐❣❤❀ ♦♥❧② ❛❣❡♥$+ ✇✐$❤ +$1♦♥❣ ♣1♦❜❛❜✐❧✐$② ✇❡✐❣❤$✐♥❣ ✇♦✉❧❞
♣❛1$✐❝✐♣❛$❡ ✐♥ +✉❝❤ ❛ ❣❛♠❡✳ ❚❤✉+✱ $❤❡ ❡+$✐♠❛$❡+ ❛♣♣❡❛1 ♥❛$✉1❛❧ $♦ $❤❡ ♣❡♥♥② ❛✉❝$✐♦♥ +❡$$✐♥❣✳
❋✐❣✉1❡ ✸✳✾ ❝♦♠♣❛1❡+ $❤❡ ♦❜$❛✐♥❡❞ ♣1♦❜❛❜✐❧✐$② ✇❡✐❣❤$✐♥❣ ❢✉♥❝$✐♦♥ $♦ $❤❡ ❡①♣❡1✐♠❡♥$❛❧
+$✉❞② ♦❢ ❈❛♠❡1❡1 ❛♥❞ ❍♦ ✭✶✾✾✹✮✱ ❛♥❞ $❤❡ ♦❜+❡1✈❛$✐♦♥❛❧ +$✉❞② ♦❢ ●✉1❡✈✐❝❤ ❡$ ❛❧✳ ✭✷✵✵✾✮✳ ■♥
$❤❡ ❈❛♠❡1❡1 ❛♥ ❍♦✬+ +$✉❞②✱ ♣❛1$✐❝✐♣❛♥$+ ❞✐❞ ♥♦$ +❡❧❢✕+❡❧❡❝$✱ ❛♥❞ $❤❡✐1 ❡+$✐♠❛$❡+ ♦❢ ♣1♦❜❛❜✐❧✐$②
✇❡✐❣❤$✐♥❣ +❤♦✉❧❞ $❤✉+ 1❡♣1❡+❡♥$ $❤❡ ❜✐❛+ ♦❢ ❛ $②♣✐❝❛❧ +✉❜❥❡❝$✳ ●✉1❡✈✐❝❤ ❡$ ❛❧✳✱ ✐♥ ❝♦♥$1❛+$✱ ✉+❡❞
❞❛$❛ ❢1♦♠ ✜♥❛♥❝✐❛❧ ♠❛1❦❡$+❀ ✐♥ $❤❡+❡ ♠❛1❦❡$+✱ ✐$ ♣♦++✐❜❧❡ $♦ ✏❜❡$ ❛❣❛✐♥+$✑ ❛♥② ❜❡❤❛✈✐♦✉1❛❧
❜✐❛+❡+✳ ❆+ ♦♥❡ ✇♦✉❧❞ ❡①♣❡❝$✱ $❤❡ ♣1♦❜❛❜✐❧✐$② ✇❡✐❣❤$✐♥❣ ❢✉♥❝$✐♦♥ ✐+ ❝❧♦+❡ $♦ ❧✐♥❡❛1✐$② ✐♥ $❤❡✐1
+❡$$✐♥❣✳ ❈♦♥$1❛+$✐♥❣ ✇✐$❤ $❤✐+✱ ✐♥ $❤❡ ♣❡♥♥② ❛✉❝$✐♦♥✱ ❛ 1❛$✐♦♥❛❧ ❜✐❞❞❡1 ✇♦✉❧❞ ✐♥ ♠♦+$ 1♦✉♥❞+
❤❛✈❡ ❛+ ❜❡+$ 1❡+♣♦♥+❡ ♦♥❧② $♦ ❛❜+$❛✐♥ ❢1♦♠ $❤❡ ❛✉❝$✐♦♥ ✕ ❛♥❞ ❤❡♥❝❡ ♥♦$ ❝1❡❛$✐♥❣ ❛ ♠❛1❦❡$
✐♥❝❡♥$✐✈❡ ❢♦1 ♣1♦❜❛❜✐❧✐$② ✇❡✐❣❤$✐♥❣ $♦ ❞✐+❛♣♣❡❛1✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✽✻ ❖❢ "❡♥♥✐❡& ❛♥❞ ")♦&♣❡❝-&✿ ❯♥❞❡)&-❛♥❞✐♥❣ ❇❡❤❛✈✐♦✉) ✐♥ "❡♥♥② ❆✉❝-✐♦♥&
❋✐❣✉&❡ ✸✳✾✿ ❈♦♠♣❛&✐1♦♥ ♦❢ 4&♦❜❛❜✐❧✐7② ❲❡✐❣❤7✐♥❣ ❋✉♥❝7✐♦♥1
✸✳✼ ❯♥❞❡'()❛♥❞✐♥❣ -❡♥♥② ❆✉❝)✐♦♥(❄
❊①❝❡$$ ❘❡✈❡♥✉❡ ✿ ❋✐❣✉%❡ ✸✳✶✵ +❤♦✇+ /❤❡ ♣%❡❞✐❝/❡❞ %❡✈❡♥✉❡ ✐♠♣❧✐❡❞ ❜② /❤❡ ❡+/✐♠❛/❡+ ♦❢ /❤❡
%✐+❦✕❧♦✈✐♥❣ ❛♥❞ ♣%♦+♣❡❝/ /❤❡♦%② ♠♦❞❡❧ ❢♦% /❤❡ ♣%♦❞✉❝/+ ✐♥ /❤❡ +❛♠♣❧❡✳ ◗✉❛❧✐/❛/✐✈❡❧②✱ ❜♦/❤
♠♦❞❡❧+ ❝❛♣/✉%❡ /❤❡ ❢❛❝/ /❤❛/ ❡①♣❡❝/❡❞ %❡✈❡♥✉❡ ❡①❝❡❡❞+ /❤❡ %❡/❛✐❧ ✈❛❧✉❡ ♦❢ /❤❡ ♦❜❥❡❝/✳ ❚❤✐+
✐+ /♦ ❜❡ ❡①♣❡❝/❡❞ ❢%♦♠ /❤❡ /❤❡♦%❡/✐❝❛❧ ❞✐+❝✉++✐♦♥✱ ❛+ /❤❡ %✐+❦✕❧♦✈✐♥❣ ♠♦❞❡❧ ✐+ ❣✉❛%❛♥/❡❡❞ /♦
♣%♦❞✉❝❡ %❡✈❡♥✉❡ ❣%❡❛/❡% /❤❛♥ %❡/❛✐❧ ✈❛❧✉❡❀ ✐♥ /❤❡ ❝❛+❡ ♦❢ ♣%♦+♣❡❝/ /❤❡♦%②✱ /❤❡ +❛♠♣❧❡ ❝♦♥/❛✐♥+
❤✐❣❤✕♣%✐❝❡❞ ♦❜❥❡❝/+✱ ❛♥❞ /❤❡+❡ ❛%❡ ❡①♣❡❝/❡❞ /♦ ②✐❡❧❞ ♣♦+✐/✐✈❡ ♣%♦✜/+✳
◗✉❛♥/✐/❛/✐✈❡❧②✱ /❤❡ ❡①♣❡❝/❡❞ %❡✈❡♥✉❡ ♣%❡❞✐❝/✐♦♥+ ♦❢ /❤❡ /✇♦ ♠♦❞❡❧+ ❛%❡ +✐♠✐❧❛% ❢♦% /❤❡
❝❛+❡ ♦❢ ✶✵♣ ❛✉❝/✐♦♥+✱ ❛♥❞ /❡♥❞ /♦ +♦♠❡✇❤❛/ ♦✈❡%✕♣%❡❞✐❝/ %❡✈❡♥✉❡✳ ❋♦% ✶✵♣ ❛✉❝/✐♦♥+✱ /❤❡
❲✐✐✬+ ♦❜+❡%✈❡❞ ❡①♣❡❝/❡❞ %❡✈❡♥✉❡ ✇❛+ ✷✾✼✳✷✱ ✇❤✐❧❡ /❤❡ ♣%♦+♣❡❝/ /❤❡♦%② ✭%✐+❦ ❛//✐/✉❞❡+✮ ♠♦❞❡❧
♣%❡❞✐❝/+ ✸✹✻✳✻✽ ✭✸✺✽✳✻✽✮❀ /❤✉+✱ ❜♦/❤ ♠♦❞❡❧+ ♦✈❡%✕♣%❡❞✐❝/✱ ❜✉/ /❤❡ ♣%♦+♣❡❝/ /❤❡♦%② ♠♦❞❡❧ ✐+
❝❧♦+❡% /♦ /❤❡ ♦❜+❡%✈❡❞ ✈❛❧✉❡+✳ ❚❤✐+ ♣❛//❡%♥ ❛❧+♦ ❤♦❧❞+ ❢♦% /❤❡ O❧❛②❙/❛/✐♦♥ ❛✉❝/✐♦♥+✳ ❚❤✉+✱
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✸ ✽✼
✇❡ ❝♦♥❝❧✉❞❡ *❤❛* ❜♦*❤ ♠♦❞❡❧/ ❝❛♥ ❡①♣❧❛✐♥ /*②❧✐/❡❞ ❢❛❝* ✶✳
78♦❞✉❝* 78✐❝❡ ■♥❝8❡♠❡♥* ❖❜/❡8✈❡❞ ❘✐/❦ ❆**✐*✉❞❡/ ❈7❚
◆✐♥*❡♥❞♦ ❲✐✐ ✵✳✶✵ ✷✾✼✳✷✼ ✸✺✹✳✻✽ ✸✹✻✳✺✼
◆✐♥*❡♥❞♦ ❲✐✐ ✵✳✵✶ ✹✷✸✳✸✽ ✺✸✽✳✹✵ ✹✺✸✳✵✵
7❧❛②❙*❛*✐♦♥ ✸ ✵✳✶✵ ✹✺✺✳✷✸ ✺✺✹✳✹✹ ✺✹✼✳✻✼
❋✐❣✉8❡ ✸✳✶✵✿ 78❡❞✐❝*❡❞ ❛♥❞ ❆❝*✉❛❧ ❘❡✈❡♥✉❡
!✐❝❡ ■♥❝!❡♠❡♥( ✿ ❋♦8 ❲✐✐ ❛✉❝*✐♦♥/✱ *❤❡ /✉❜✕/❛♠♣❧❡ ❛❧/♦ ❝♦♥*❛✐♥/ ❛✉❝*✐♦♥/ ✇✐*❤ ❛ ●❇7 ✵✳✵✶
♣8✐❝❡ ✐♥❝8❡♠❡♥*✳ ❚❤❡/❡ ②✐❡❧❞❡❞ ❤✐❣❤❡8 8❡✈❡♥✉❡ *❤❛♥ ✶✵♣ ❛✉❝*✐♦♥/ ❢♦8 *❤❡ /❛♠❡ ♦❜❥❡❝*✱ ❝♦♥✲
/✐/*❡♥* ✇✐*❤ /*②❧✐/❡❞ ❢❛❝* ✸✳ ❆/ ✜❣✉8❡ ✸✳✼✱ ❜♦*❤ ♠♦❞❡❧/ U✉❛❧✐*❛*✐✈❡❧② ♠❛*❝❤ *❤✐/ ✐♥❝8❡❛/❡❞
8❡✈❡♥✉❡✳ ❚❤❡ ♣8♦/♣❡❝* *❤❡♦8② ♠♦❞❡❧ ❝♦♠❡/ ❝❧♦/❡ *♦ ♠❛*❝❤✐♥❣ ❡①♣❡❝*❡❞ 8❡✈❡♥✉❡ U✉❛♥*✐*❛✲
*✐✈❡❧②✱ *♦♦✿ ✐* ♣8❡❞✐❝*/ ●❇7 ✹✺✸✳✵✵ 8❡✈❡♥✉❡✱ ❝♦♠♣❛8❡❞ *♦ ❛♥ ♦❜/❡8✈❡❞ ✈❛❧✉❡ ♦❢ ●❇7 ✹✷✸✳✸✽✳
■♥ ❝♦♥*8❛/*✱ *❤❡ 8✐/❦✕❧♦✈✐♥❣ ♠♦❞❡❧ /✉❜/*❛♥*✐❛❧❧② ♦✈❡8✕♣8❡❞✐❝*/ 8❡✈❡♥✉❡ ✭●❇7 ✺✺✹✳✹✹✮✳ ■♥
❝♦♥❝❧✉/✐♦♥✱ *❤❡ ❡✛❡❝* ♦❢ *❤❡ ♣8✐❝❡ ✐♥❝8❡♠❡♥* ✐/ ❜❡**❡8 ♠❛*❝❤❡❞ ❜② *❤❡ ♣8♦/♣❡❝* *❤❡♦8② ♠♦❞❡❧✳
❯♥♣!♦✜(❛❜❧❡ ❆✉❝(✐♦♥2 ✿ ❆✉❝*✐♦♥/ ❢♦8 ❧♦✇✕♣8✐❝❡❞ ♦❜❥❡❝*/ *❡♥❞ *♦ ❜❡ ✉♥♣8♦✜*❛❜❧❡✱ ❛/ ❤✐❣❤✲
❧✐❣❤*❡❞ ✐♥ /*②❧✐/❡❞ ❢❛❝* ✸✳ ❚❤❡ 8✐/❦ ❛**✐*✉❞❡/ ♠♦❞❡❧ ✐/ ♥♦* ❛❜❧❡ *♦ ♠❛*❝❤ *❤✐/ ❢❛❝* ❡✐*❤❡8
U✉❛❧✐*❛*✐✈❡❧② ♦8 U✉❛♥*✐*❛*✐✈❡❧②✳
❋♦8 *❤❡ ♣8♦/♣❡❝* *❤❡♦8② ♠♦❞❡❧✱ ❡U✉❛*✐♦♥ ✸✳✹✳✶✵ ♣8♦✈✐❞❡/ ❛ *❤8❡/❤♦❧❞ /✉❝❤ *❤❛* ❛❧❧ ❛✉❝*✐♦♥/
✇✐*❤ 8❡*❛✐❧ ♣8✐❝❡ ❜❡❧♦✇ *❤❛* ✈❛❧✉❡ ❛8❡ ✉♥♣8♦✜*❛❜❧❡✳ ❆♣♣❧②✐♥❣ *❤❡ ❡U✉❛*✐♦♥ *♦ *❤❡ ❡/*✐♠❛*❡/
♦❢ ✸✳✽✱ ②✐❡❧❞/ ❛ ♣8❡❞✐❝*✐♦♥ *❤❛* ❛✉❝*✐♦♥/ ✇✐❧❧ 8❡*❛✐❧ ✈❛❧✉❡ ❜❡❧♦✇ ●❇7 ✶✹✳✽✻ ❛8❡ ✉♥♣8♦✜*❛❜❧❡✳
■♥ ❝♦♥*8❛/*✱ *❤❡ *❤8❡/❤♦❧❞ ❡/*✐♠❛*❡❞ ❢8♦♠ *❤❡ 8❡❣8❡//✐♦♥ ♠♦❞❡❧ 8❡♣♦8*❡❞ ✐♥ ✜❣✉8❡ ✸✳✸ ✐♠♣❧②
❛ *❤8❡/❤♦❧❞ ♦❢ ●❇7 ✷✽✳✽✾✳ ❈❧❡❛8❧②✱ *❤❡ ♣8♦/♣❡❝* *❤❡♦8② ♠♦❞❡❧ U✉❛❧✐*❛*✐✈❡❧② ♠❛*❝❤❡/ *❤❡
/*②❧✐/❡❞ ❢❛❝*✳ ◗✉❛♥*✐*❛*✐✈❡❧②✱ *❤❡ ♠♦❞❡❧✬/ ✐♠♣❧✐❡❞ *❤8❡/❤♦❧❞ ✐/ *♦♦ ❧♦✇✱ ♣♦✐♥*✐♥❣ *♦ ♣♦//✐❜❧❡
❢✉♥❝*✐♦♥❛❧ ❢♦8♠ ✐//✉❡/✳ ❍♦✇❡✈❡8✱ ❣✐✈❡♥ *❤❛* *❤❡ ❡/*✐♠❛*✐♦♥ ✇❛/ ❝❛88✐❡❞ ♦✉* ❢♦8 ♣8♦❞✉❝*/ ✇✐*❤
❛ 8❡*❛✐❧ ✈❛❧✉❡ ❛❧♠♦/* ❛♥ ♦8❞❡8 ♦❢ ♠❛❣♥✐*✉❞❡ ❛✇❛② ❢8♦♠ *❤❡ *❤8❡/❤♦❧❞✱ *❤❡ ♦✉* ♦❢ /❛♠♣❧❡
♣❡8❢♦8♠❛♥❝❡ ✐/ 8❡❛/♦♥❛❜❧❡✳ ❆* ❛♥② 8❛*❡✱ ♣8♦/♣❡❝* *❤❡♦8② ❞❡❧✐✈❡8/ ❛ ❣♦♦❞ U✉❛❧✐*❛*✐✈❡ ✜* ♦❢
/*②❧✐/❡❞ ❢❛❝* ✸✳
❊①♣❡❝(❡❞ ❘❡(✉!♥ (♦ ❇✐❞❞✐♥❣ ✿ ❆/ *❤❡ ❛✉❝*✐♦♥ ♣8♦❣8❡//❡/ ✐♥*♦ ❧❛*❡8 8♦✉♥❞/✱ *❤❡ ❡①♣❡❝*❡❞ 8❡*✉8♥
*♦ ♣❧❛❝✐♥❣ ❜✐❞ 8✐/❡/ ❛/ ♣❡8 /*②❧✐/❡❞ ❢❛❝* ✹✳ ❋✐❣✉8❡ ✸✳✶✶ ❝♦♠♣❛8❡/ *❤❡ ❛❝*✉❛❧ ❡①♣❡❝*❡❞ 8❡*✉8♥
*♦ *❤❡ ✈❛❧✉❡/ ✐♠♣❧✐❡❞ ❜② ❜♦*❤ ♠♦❞❡❧/✳
❋♦8 ❲✐✐ ❛✉❝*✐♦♥/✱ *❤❡ 8✐/❦✕❧♦✈✐♥❣ ♠♦❞❡❧ ❞♦❡/ ✈❡8② ✇❡❧❧ ✐♥ ❡❛8❧② 8♦✉♥❞/ ♦❢ ❜✐❞❞✐♥❣✱ ♠❛*❝❤✲
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✽✽ ❖❢ "❡♥♥✐❡& ❛♥❞ ")♦&♣❡❝-&✿ ❯♥❞❡)&-❛♥❞✐♥❣ ❇❡❤❛✈✐♦✉) ✐♥ "❡♥♥② ❆✉❝-✐♦♥&
✭❛✮ ◆✐♥&❡♥❞♦ ❲✐✐ ✭❜✮ ,❧❛②/&❛&✐♦♥ ✸
❆❝#✉❛❧ ✈❛❧✉❡) ✐♥ ❜❧❛❝❦✱ /0♦)♣❡❝# ❚❤❡♦0② ❣0❡❡♥✱ ❘✐)❦ ❆##✐#✉❞❡) 0❡❞
❋✐❣✉0❡ ✸✳✶✶✿ ❆❝#✉❛❧ ❛♥❞ /0❡❞✐❝#❡❞ ❊①♣❡❝#❡❞ ❘❡#✉0♥) #♦ ❇✐❞❞✐♥❣
✐♥❣ A✉❛❧✐#❛#✐✈❡❧② ❛♥❞ A✉❛♥#✐#❛#✐✈❡❧② #❤❡ ❞❛#❛✳ ■♥ ❧❛#❡ 0♦✉♥❞)✱ #❤❡ ♦❜)❡0✈❡❞ 0❡#✉0♥ 0✐)❡)
A✉✐❝❦❧② ❛❜♦✈❡ #❤❡ ♣0❡❞✐❝#❡❞ ✈❛❧✉❡✱ ❛♥❞ #❤❡ ♠♦❞❡❧ ✐) ✉♥❛❜❧❡ #♦ ❡①♣❧❛✐♥ ❡✈❡♥ A✉❛❧✐#❛#✐✈❡❧② #❤❡
♣♦)✐#✐✈❡ 0❡#✉0♥ ❡♥❥♦②❡❞ ❜② ❜✐❞❞❡0) ✐♥ ❧❛#❡ 0♦✉♥❞)✳ ■♥ ❝♦♥#0❛)#✱ #❤❡ ♣0♦)♣❡❝# #❤❡♦0② ♠♦❞❡❧
❝❛#❝❤❡) ❧❡)) ♦❢ #❤❡ ✈❛0✐❛#✐♦♥ ❜❡#✇❡❡♥ 0♦✉♥❞)✱ ♦✈❡0✲♣0❡❞✐❝#✐♥❣ 0❡#✉0♥) ✐♥ ❡❛0❧② 0♦✉♥❞) ❛♥❞
✉♥❞❡0✕♣0❡❞✐❝#✐♥❣ ❜② ❛ ❣0❡❛#❡0 ♠❛0❣✐♥ ❧❛#❡ ✐♥ #❤❡ ❣❛♠❡✳ ❇♦#❤ ♠♦❞❡❧) ♣0♦✈✐❞❡ ❛ ♣♦♦0 ✜#
♦❢ ✇✐#❤✐♥✕♣0♦❞✉❝# ✈❛0✐❛#✐♦♥ ❢♦0 /❧❛②❙#❛#✐♦♥ ✭✸✮ ❛✉❝#✐♦♥)✱ ❛) ✐) ❡✈✐❞❡♥# ❢0♦♠ ♣❛0# ✭❜✮ ♦❢ #❤❡
✜❣✉0❡✳ ❘❡#✉0♥) ❛0❡ ✉♥❞❡0✕♣0❡❞✐❝#❡❞ ❝♦♥)✐)#❡♥#❧②✱ ✐♥ ❧✐♥❡ ✇✐#❤ #❤❡ ♦✈❡0✕♣0❡❞✐❝#❡❞ 0❡✈❡♥✉❡ ❞✐)✲
❝✉))❡❞ ❛❜♦✈❡❀ ✉♥❞❡0)#❛♥❞✐♥❣ ✇❤② ❜♦#❤ ♠♦❞❡❧) ❢❛✐❧ ❢♦0 #❤✐) ♣0♦❞✉❝# ✐) ❛♥ ✐♥#❡0❡)#✐♥❣ A✉❡)#✐♦♥
❢♦0 ❢✉#✉0❡ 0❡)❡❛0❝❤✳
✸✳✽ ❈♦♥❝❧✉)✐♦♥
/❡♥♥② ❛✉❝#✐♦♥) ♠❛② ✇❡❧❧ ❜❡ ❛♠♦♥❣ #❤❡ ❧❛0❣❡)# ❡❝♦♥♦♠✐❝ ✜❡❧❞ ❡①♣❡0✐♠❡♥#) ❡✈❡0 ❝♦♥❞✉❝#❡❞✱
❛♥❞ ❛) )✉❝❤ ❤❛✈❡ ②✐❡❧❞❡❞ ❛ 0✐❝❤ ❞❛#❛)❡# #♦ ✐♥✈❡)#✐❣❛#❡ ❤✉♠❛♥ ❜❡❤❛✈✐♦✉0 ✉♥❞❡0 0✐)❦✳ ❚❤✐)
)❤♦✇) #❤❛# ♣❡♥♥② ❛✉❝#✐♦♥) ❛0❡ ♦❢#❡♥ ♣0♦✜#❛❜❧❡ ❢♦0 #❤❡ )❡❧❧❡0✱ ❡)♣❡❝✐❛❧❧② ✐❢ ❤✐❣❤✕✈❛❧✉❡ ✐#❡♠)
❛0❡ )♦❧❞❀ ❜✉# ❧♦))❡) ♠❛② ❧♦♦♠ ❢♦0 ❧♦✇✕✈❛❧✉❡ ✐#❡♠)✳ ▲♦✇❡0 ♣0✐❝❡ ✐♥❝0❡♠❡♥#) ❛0❡ ❛))♦❝✐❛#❡❞
✇✐#❤ ❣0❡❛#❡0 ♣0♦✜#❛❜✐❧✐#②✱ ❛♥❞ #❤❡ ❡①♣❡❝#❡❞ 0❡#✉0♥ #♦ ❜✐❞❞✐♥❣ 0✐)❡) ✇✐#❤ #❤❡ ❛✉❝#✐♦♥ 0♦✉♥❞)✳
❚❤❡)❡ ❢❛❝#) ❤❛✈❡ #❤❡✐0 ❛♥❛❧♦❣✉❡) ✐♥ ♦#❤❡0 ❜❡##✐♥❣ ♠❛0❦❡#)✱ )✉❝❤ ❛) ❢♦0 ❤♦0)❡ 0❛❝❡)✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❈❤❛♣$❡&✸ ✽✾
❲❡ $❤❡♥ ❛♣♣❧✐❡❞ ♣,♦.♣❡❝$ $❤❡♦,② $♦ ✉♥❞❡,.$❛♥❞ $❤❡ ❢❡❛$✉,❡. ✐♥ $❤❡ ❞❛$❛✳ ❚❤❡ ✜$$❡❞
♠♦❞❡❧ ✐♠♣❧✐❡. $❤❛$ ❛❣❡♥$. ❛,❡ ❧♦.. ❛✈❡,.❡ ❛♥❞ ❤❛✈❡ ❛ ❞✐♠✐♥✐.❤✐♥❣ ♠❛,❣✐♥❛❧ .❡♥.✐$✐✈✐$② ♦✈❡,
❣❛✐♥.✱ ❛. ❢♦✉♥❞ ✐♥ ♦$❤❡, .$✉❞✐❡.✱ ❧❛❜♦,❛$♦,② ❛♥❞ ♦❜.❡,✈❛$✐♦♥❛❧✳ ❍♦✇❡✈❡,✱ ❜✐❞❞❡,. ❛♣♣❡❛, $♦
.$,♦♥❣❧② ♦✈❡,✇❡✐❣❤$ ❧♦✇ ♣,♦❜❛❜✐❧✐$✐❡. ✕ ❛♥❞ ✉♥❞❡,✇❡✐❣❤$ ❤✐❣❤ ♣,♦❜❛❜✐❧✐$✐❡. ✕ ✇❤✐❝❤ ❡①♣❧❛✐♥.
✇❤② $❤❡.❡ ❛✉❝$✐♦♥. ❝❛♥ ❜❡ ♣,♦✜$❛❜❧❡✳ ❚❤❡ $❤❡♦,② ♠❛$❝❤❡. $❤❡ .$②❧✐.❡❞ ❢❛❝$ ?✉❛❧✐$❛$✐✈❡❧② $❤❛$
❛✉❝$✐♦♥. ❢♦, ❧♦✇✕✈❛❧✉❡ ♦❜❥❡❝$. ❛,❡ ♦❢$❡♥ ✉♥♣,♦✜$❛❜❧❡✳ ❚❤✉.✱ ♦♥❡ ♠❛② .❡❡ ♣❡♥♥② ❛✉❝$✐♦♥. ❛.
❛ ♠❡❝❤❛♥✐.♠ $♦ ❡①$,❛❝$ ❛ .♠❛❧❧ ❛♠♦✉♥$ ♦❢ .✉,♣❧✉. ❢,♦♠ ♠❛♥② ❜❡❤❛✈✐♦✉,❛❧ ❜✐❞❞❡,.✳
❚❤❡ ❛❧$❡,♥❛$✐✈❡ ❤②♣♦$❤❡.✐. ✐. ,✐.❦✕❧♦✈✐♥❣ ❜❡❤❛✈✐♦✉,✳ ❚❤❡ ,✐.❦✕❧♦✈✐♥❣ ♠♦❞❡❧ ❝❛♥ ❛❧.♦
❡①♣❧❛✐♥ ❤✐❣❤ ,❡✈❡♥✉❡✱ ❜✉$ ?✉❛♥$✐$❛$✐✈❡❧② ♦✈❡,✕♣,❡❞✐❝$. ,❡✈❡♥✉❡ ❛♥❞ .✉✛❡,. ❢,♦♠ ♣❛,❛♠❡$❡,
✐♥.$❛❜✐❧✐$②✳ ▼♦,❡♦✈❡,✱ ✐$ ✇❛. ♥♦$ ❛❜❧❡ $♦ ❡①♣❧❛✐♥ ✇❤② ❛✉❝$✐♦♥. ❢♦, ❧♦✇✕♣,✐❝❡❞ ♣,♦❞✉❝$. ❛,❡
♦❢$❡♥ ❧♦.. ♠❛❦✐♥❣ ❡✈❡♥ ✐♥ ?✉❛❧✐$❛$✐✈❡ $❡,♠.✳
■♥ ❝♦♥❝❧✉.✐♦♥✱ ♣,♦.♣❡❝$ $❤❡♦,② ♣,♦✈✐❞❡. ❛ ✈❡,② ❛♣♣❡❛❧✐♥❣ ❢,❛♠❡✇♦,❦ $♦ ✉♥❞❡,.$❛♥❞ ❜❡✲
❤❛✈✐♦✉, ✐♥ ♣❡♥♥② ❛✉❝$✐♦♥.✳ ■$ ♦✛❡,. ✈❡,② ❣♦♦❞ ?✉❛❧✐$❛$✐✈❡✱ ❛♥❞ ♦❢$❡♥ ?✉❛♥$✐$❛$✐✈❡ ✜$✱ ✇✐$❤
$❤❡ .$②❧✐.❡❞ ❢❛❝$. ✐❞❡♥$✐✜❡❞✳ ■♥ ❢✉$✉,❡ ,❡.❡❛,❝❤✱ ✐$ ✇♦✉❧❞ ❜❡ ✈❡,② ✐♥$❡,❡.$✐♥❣ $♦ ❝♦♥.✐❞❡, ❛❧✲
$❡,♥❛$✐✈❡ ❢✉♥❝$✐♦♥❛❧ ❢♦,♠. ♦, ♥♦♥✕♣❛,❛♠❡$,✐❝ ❡.$✐♠❛$✐♦♥ $♦ ❢✉,$❤❡, ,❡✜♥❡ ♦✉, ✉♥❞❡,.$❛♥❞✐♥❣
♦❢ ♣❡♥♥② ❛✉❝$✐♦♥.✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✾✵ ❖❢ "❡♥♥✐❡& ❛♥❞ ")♦&♣❡❝-&✿ ❯♥❞❡)&-❛♥❞✐♥❣ ❇❡❤❛✈✐♦✉) ✐♥ "❡♥♥② ❆✉❝-✐♦♥&
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❇✐❜❧✐♦❣&❛♣❤②
❆✉❣❡♥❜❧✐❝❦✱ ◆✳✱ ✷✵✶✷✳ ❈♦♥2✉♠❡4 ❛♥❞ ♣4♦❞✉❝❡4 ❜❡❤❛✈✐♦4 ✐♥ :❤❡ ♠❛4❦❡: ❢♦4 ♣❡♥♥② ❛✉❝✲
:✐♦♥2✿ ❆ :❤❡♦4❡:✐❝❛❧ ❛♥❞ ❡♠♣✐4✐❝❛❧ ❛♥❛❧②2✐2✳ ❯♥♣✉❜❧✐2❤❡❞ ♠❛♥✉2❝4✐♣:✳ ❆✈❛✐❧❛❜❧❡ ❛:
✇✇✇✳2:❛♥❢♦4❞✳❡❞✉✴B❡❞✼✽✾✳
❇❛4❜❡4✐2✱ ◆✳✱ ✷✵✶✷❛✳ ❆ ♠♦❞❡❧ ♦❢ ❝❛2✐♥♦ ❣❛♠❜❧✐♥❣✳ ▼❛♥❛❣❡♠❡♥: ❙❝✐❡♥❝❡ ✺✽ ✭✶✮✱ ✸✺✕✺✶✳
❇❛4❜❡4✐2✱ ◆✳ ❈✳✱ ✷✵✶✷❜✳ ❚❤✐4:② ②❡❛42 ♦❢ ♣4♦2♣❡❝: :❤❡♦4② ✐♥ ❡❝♦♥♦♠✐❝2✿ ❆ 4❡✈✐❡✇ ❛♥❞ ❛22❡22✲
♠❡♥:✳ ❚❡❝❤✳ 4❡♣✳✱ ◆❛:✐♦♥❛❧ ❇✉4❡❛✉ ♦❢ ❊❝♦♥♦♠✐❝ ❘❡2❡❛4❝❤✳
❇②❡42✱ ❏✳ ❲✳✱ ▼✐:③❡♥♠❛❝❤❡4✱ ▼✳✱ ❩❡4✈❛2✱ ●✳✱ ✷✵✶✵✳ ■♥❢♦4♠❛:✐♦♥ ❛2②♠♠❡:4✐❡2 ✐♥ ♣❛②✲♣❡4✲❜✐❞
❛✉❝:✐♦♥2✳ ■♥✿ W4♦❝❡❡❞✐♥❣2 ♦❢ :❤❡ ✶✶:❤ ❆❈▼ ❝♦♥❢❡4❡♥❝❡ ♦♥ ❊❧❡❝:4♦♥✐❝ ❝♦♠♠❡4❝❡✳ ❆❈▼✱ ♣♣✳
✶✕✶✷✳
❈❛♠❡4❡4✱ ❈✳ ❋✳✱ ✷✵✵✹✳ W4♦2♣❡❝: :❤❡♦4② ✐♥ :❤❡ ✇✐❧❞✿ ❊✈✐❞❡♥❝❡ ❢4♦♠ :❤❡ ✜❡❧❞✳ ❈♦❧✐♥ ❋✳ ❈❛♠❡4❡4✱
●❡♦4❣❡ ▲♦❡✇❡♥2:❡✐♥✱ ❛♥❞ ▼❛::❤❡✇✳ ❘❛❜✐♥✱ ❡❞2✳✱ ❆❞✈❛♥❝❡2 ✐♥ ❇❡❤❛✈✐♦4❛❧ ❊❝♦♥♦♠✐❝2✱ ✶✹✽✕
✶✻✶✳
❈❛♠❡4❡4✱ ❈✳ ❋✳✱ ❍♦✱ ❚✳✲❍✳✱ ✶✾✾✹✳ ❱✐♦❧❛:✐♦♥2 ♦❢ :❤❡ ❜❡:✇❡❡♥♥❡22 ❛①✐♦♠ ❛♥❞ ♥♦♥❧✐♥❡❛4✐:② ✐♥
♣4♦❜❛❜✐❧✐:②✳ ❏♦✉4♥❛❧ ♦❢ 4✐2❦ ❛♥❞ ✉♥❝❡4:❛✐♥:② ✽ ✭✷✮✱ ✶✻✼✕✶✾✻✳
●4✐✣:❤✱ ❘✳ ▼✳✱ ✶✾✹✾✳ ❖❞❞2 ❛❞❥✉2:♠❡♥:2 ❜② ❛♠❡4✐❝❛♥ ❤♦42❡✲4❛❝❡ ❜❡::♦42✳ ❚❤❡ ❆♠❡4✐❝❛♥
❏♦✉4♥❛❧ ♦❢ W2②❝❤♦❧♦❣② ✻✷ ✭✷✮✱ ✷✾✵✕✷✾✹✳
●✉4❡✈✐❝❤✱ ●✳✱ ❑❧✐❣❡4✱ ❉✳✱ ▲❡✈②✱ ❖✳✱ ✷✵✵✾✳ ❉❡❝✐2✐♦♥✲♠❛❦✐♥❣ ✉♥❞❡4 ✉♥❝❡4:❛✐♥:②✲❛ ✜❡❧❞ 2:✉❞② ♦❢
❝✉♠✉❧❛:✐✈❡ ♣4♦2♣❡❝: :❤❡♦4②✳ ❏♦✉4♥❛❧ ♦❢ ❇❛♥❦✐♥❣ ✫ ❋✐♥❛♥❝❡ ✸✸ ✭✼✮✱ ✶✷✷✶✕✶✷✷✾✳
❍✐♥♥♦2❛❛4✱ ❚✳✱ ✷✵✶✵✳ W❡♥♥② ❛✉❝:✐♦♥2 ❛4❡ ✉♥♣4❡❞✐❝:❛❜❧❡✳
❍♦❞❣❡2✱ ❙✳✱ ❚♦♠♣❦✐♥2✱ ❘✳✱ ❩✐❡♠❜❛✱ ❲✳✱ ✷✵✵✸✳ ❚❤❡ ❢❛✈♦4✐:❡✴❧♦♥❣✲2❤♦: ❜✐❛2 ✐♥ 2✫♣ ✺✵✵ ❛♥❞
❢:2❡ ✶✵✵ ✐♥❞❡① ❢✉:✉4❡2 ♦♣:✐♦♥2✿ :❤❡ 4❡:✉4♥ :♦ ❜❡:2 ❛♥❞ :❤❡ ❝♦2: ♦❢ ✐♥2✉4❛♥❝❡✳ ■♥✿ ❊❋❆ ✷✵✵✸
❆♥♥✉❛❧ ❈♦♥❢❡4❡♥❝❡ W❛♣❡4✳ ◆♦✳ ✶✸✺✳
✾✶
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✾✷ ❇■❇▲■❖●❘❆'❍❨
❏✉❧❧✐❡♥✱ ❇✳✱ ❙❛❧❛♥✐-✱ ❇✳✱ ✷✵✵✵✳ ❊01✐♠❛1✐♥❣ ♣5❡❢❡5❡♥❝❡0 ✉♥❞❡5 5✐0❦✿ ❚❤❡ ❝❛0❡ ♦❢ 5❛❝❡15❛❝❦
❜❡11♦50✳ ❏♦✉5♥❛❧ ♦❢ ?♦❧✐1✐❝❛❧ ❊❝♦♥♦♠② ✶✵✽ ✭✸✮✱ ✺✵✸✕✺✸✵✳
❑❛❤♥❡♠❛♥✱ ❉✳✱ ❚✈❡50❦②✱ ❆✳✱ ✶✾✼✾✳ ?5♦0♣❡❝1 1❤❡♦5②✿ ❆♥ ❛♥❛❧②0✐0 ♦❢ ❞❡❝✐0✐♦♥ ✉♥❞❡5 5✐0❦✳
❊❝♦♥♦♠❡15✐❝❛✿ ❏♦✉5♥❛❧ ♦❢ 1❤❡ ❊❝♦♥♦♠❡15✐❝ ❙♦❝✐❡1②✱ ✷✻✸✕✷✾✶✳
▲❛11✐♠♦5❡✱ ?✳ ❑✳✱ ❇❛❦❡5✱ ❏✳ ❘✳✱ ❲✐11❡✱ ❆✳ ❉✳✱ ✶✾✾✷✳ ❚❤❡ ✐♥✢✉❡♥❝❡ ♦❢ ♣5♦❜❛❜✐❧✐1② ♦♥ 5✐0❦②
❝❤♦✐❝❡✿ ❆ ♣❛5❛♠❡15✐❝ ❡①❛♠✐♥❛1✐♦♥✳ ❏♦✉5♥❛❧ ♦❢ ❡❝♦♥♦♠✐❝ ❜❡❤❛✈✐♦5 ✫ ♦5❣❛♥✐③❛1✐♦♥ ✶✼ ✭✸✮✱
✸✼✼✕✹✵✵✳
▼❛❧♠❡♥❞✐❡5✱ ❯✳✱ ▲❡❡✱ ❨✳ ❍✳✱ ✷✵✶✶✳ ❚❤❡ ❜✐❞❞❡5✬0 ❝✉50❡✳ ❚❤❡ ❆♠❡5✐❝❛♥ ❊❝♦♥♦♠✐❝ ❘❡✈✐❡✇
✶✵✶ ✭✷✮✱ ✼✹✾✕✼✽✼✳
▼❛❧♠❡♥❞✐❡5✱ ❯✳✱ ❙③❡✐❞❧✱ ❆✳✱ ✷✵✵✽✳ ❋✐0❤✐♥❣ ❢♦5 ❢♦♦❧0✳ ❚❡❝❤✳ 5❡♣✳✱ ❇❡5❦❡❧❡② ❯♥✐✈❡50✐1② ♠✐♠❡♦✳
❖❝❦❡♥❢❡❧0✱ ❆✳✱ ❘❡✐❧❡②✱ ❉✳✱ ❙❛❞5✐❡❤✱ ❆✳✱ ✷✵✵✻✳ ❖♥❧✐♥❡ ❛✉❝1✐♦♥0✳ ❚❡❝❤✳ 5❡♣✳✱ ◆❛1✐♦♥❛❧ ❇✉5❡❛✉ ♦❢
❊❝♦♥♦♠✐❝ ❘❡0❡❛5❝❤✳
❖11❛✈✐❛♥✐✱ ▼✳✱ ❙_5❡♥0❡♥✱ ?✳ ◆✳✱ ✷✵✵✽✳ ❚❤❡ ❢❛✈♦5✐1❡✲❧♦♥❣0❤♦1 ❜✐❛0✿ ❛♥ ♦✈❡5✈✐❡✇ ♦❢ 1❤❡ ♠❛✐♥
❡①♣❧❛♥❛1✐♦♥0✳ ❍❛♥❞❜♦♦❦ ♦❢ ❙♣♦510 ❛♥❞ ▲♦11❡5② ▼❛5❦❡10 ✭❡❞0✳ ❍❛✉0❝❤✱ ❉❇ ❛♥❞ ❩✐❡♠❜❛✱
❲❚✮✱ ◆♦51❤✲❍♦❧❧❛♥❞✴❊❧0❡✈✐❡5✱ ✽✸✕✶✵✷✳
?❧❛11✱ ❇✳ ❈✳✱ ?5✐❝❡✱ ❏✳✱ ❚❛♣♣❡♥✱ ❍✳✱ ✷✵✶✸✳ ❚❤❡ 5♦❧❡ ♦❢ 5✐0❦ ♣5❡❢❡5❡♥❝❡0 ✐♥ ♣❛②✲1♦✲❜✐❞ ❛✉❝1✐♦♥0✳
▼❛♥❛❣❡♠❡♥1 ❙❝✐❡♥❝❡ ✭✐♥ ♣5✐♥1✮✳
❘❡0♥✐❝❦✱ ?✳✱ ❩❡❝❦❤❛✉0❡5✱ ❘✳✱ ❙✇❛♥0♦♥✱ ❏✳✱ ▲♦❝❦✇♦♦❞✱ ❑✳✱ ✷✵✵✻✳ ❚❤❡ ✈❛❧✉❡ ♦❢ 5❡♣✉1❛1✐♦♥ ♦♥
❡❜❛②✿ ❆ ❝♦♥15♦❧❧❡❞ ❡①♣❡5✐♠❡♥1✳ ❊①♣❡5✐♠❡♥1❛❧ ❊❝♦♥♦♠✐❝0 ✾ ✭✷✮✱ ✼✾✕✶✵✶✳
❙♥♦✇❜❡5❣✱ ❊✳✱ ❲♦❧❢❡50✱ ❏✳✱ ✷✵✶✵✳ ❊①♣❧❛✐♥✐♥❣ 1❤❡ ❢❛✈♦5✐1❡✲❧♦♥❣0❤♦1 ❜✐❛0✿ ■0 ✐1 5✐0❦✲❧♦✈❡ ♦5
♠✐0♣❡5❝❡♣1✐♦♥0❄ ❚❡❝❤✳ 5❡♣✳✱ ◆❛1✐♦♥❛❧ ❇✉5❡❛✉ ♦❢ ❊❝♦♥♦♠✐❝ ❘❡0❡❛5❝❤✳
❙1❛5♠❡5✱ ❈✳✱ ✷✵✵✵✳ ❉❡✈❡❧♦♣♠❡♥10 ✐♥ ♥♦♥✲❡①♣❡❝1❡❞ ✉1✐❧✐1② 1❤❡♦5②✿ ❚❤❡ ❤✉♥1 ❢♦5 ❛ ❞❡0❝5✐♣1✐✈❡
1❤❡♦5② ♦❢ ❝❤♦✐❝❡ ✉♥❞❡5 5✐0❦✳ ❏♦✉5♥❛❧ ♦❢ ❡❝♦♥♦♠✐❝ ❧✐1❡5❛1✉5❡ ✸✽ ✭✷✮✱ ✸✸✷✕✸✽✷✳
❚❤❛❧❡5✱ ❘✳✱ ✷✵✵✾✳ ?❛②✐♥❣ ❛ ♣5✐❝❡ ❢♦5 1❤❡ 1❤5✐❧❧ ♦❢ 1❤❡ ❤✉♥1✳
❯❘▲ ❤!!♣✿✴✴✇✇✇✳♥②!✐♠❡,✳❝♦♠✴✷✵✵✾✴✶✶✴✶✺✴❜✉,✐♥❡,,✴❡❝♦♥♦♠②✴✶✺✈✐❡✇✳❤!♠❧
❚5❡♣❡❧✱ ❈✳✱ ❋♦①✱ ❈✳ ❘✳✱ ?♦❧❞5❛❝❦✱ ❘✳ ❆✳✱ ✷✵✵✺✳ ?5♦0♣❡❝1 1❤❡♦5② ♦♥ 1❤❡ ❜5❛✐♥❄ 1♦✇❛5❞ ❛
❝♦❣♥✐1✐✈❡ ♥❡✉5♦0❝✐❡♥❝❡ ♦❢ ❞❡❝✐0✐♦♥ ✉♥❞❡5 5✐0❦✳ ❈♦❣♥✐1✐✈❡ ❇5❛✐♥ ❘❡0❡❛5❝❤ ✷✸ ✭✶✮✱ ✸✹✕✺✵✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
❇■❇▲■❖●❘❆'❍❨ ✾✸
❚✈❡%&❦②✱ ❆✳✱ ❑❛❤♥❡♠❛♥✱ ❉✳✱ ✶✾✾✷✳ ❆❞✈❛♥❝❡& ✐♥ ♣%♦&♣❡❝9 9❤❡♦%②✿ ❈✉♠✉❧❛9✐✈❡ %❡♣%❡&❡♥9❛9✐♦♥
♦❢ ✉♥❝❡%9❛✐♥9②✳ ❏♦✉%♥❛❧ ♦❢ ❘✐&❦ ❛♥❞ ✉♥❝❡%9❛✐♥9② ✺ ✭✹✮✱ ✷✾✼✕✸✷✸✳
❲❛❦❦❡%✱ H✳ H✳✱ ✷✵✶✵✳ H%♦&♣❡❝9 9❤❡♦%②✿ ❋♦% %✐&❦ ❛♥❞ ❛♠❜✐❣✉✐9②✳ ❈❛♠❜%✐❞❣❡ ❯♥✐✈❡%&✐9② H%❡&&
❈❛♠❜%✐❞❣❡✳
❲❛♥❣✱ ❩✳✱ ❳✉✱ ▼✳✱ ✷✵✶✸✳ ❙❡❧❧✐♥❣ ❛ ❞♦❧❧❛% ❢♦% ♠♦%❡ 9❤❛♥ ❛ ❞♦❧❧❛%❄ ❡✈✐❞❡♥❝❡ ❢%♦♠ ♦♥❧✐♥❡ ♣❡♥♥②
❛✉❝9✐♦♥&✳ ❚❡❝❤✳ %❡♣✳✱ ❘❡&♦✉%❝❡& ❢♦% 9❤❡ ❋✉9✉%❡✳
❲❡✐9③♠❛♥✱ ▼✳✱ ✶✾✻✺✳ ❯9✐❧✐9② ❛♥❛❧②&✐& ❛♥❞ ❣%♦✉♣ ❜❡❤❛✈✐♦%✿ ❆♥ ❡♠♣✐%✐❝❛❧ &9✉❞②✳ ❚❤❡ ❏♦✉%♥❛❧
♦❢ H♦❧✐9✐❝❛❧ ❊❝♦♥♦♠② ✼✸ ✭✶✮✱ ✶✽✕✷✻✳
❲♦♦❞❧❛♥❞✱ ▲✳ ▼✳✱ ❲♦♦❞❧❛♥❞✱ ❇✳ ▼✳✱ ✶✾✾✹✳ ▼❛%❦❡9 ❡✣❝✐❡♥❝② ❛♥❞ 9❤❡ ❢❛✈♦%✐9❡✲❧♦♥❣&❤♦9 ❜✐❛&✿
❚❤❡ ❜❛&❡❜❛❧❧ ❜❡99✐♥❣ ♠❛%❦❡9✳ ❚❤❡ ❏♦✉%♥❛❧ ♦❢ ❋✐♥❛♥❝❡ ✹✾ ✭✶✮✱ ✷✻✾✕✷✼✾✳
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798
✾✹ ❇■❇▲■❖●❘❆'❍❨
Gnutzmann, Hinnerk (2013), Industrial organization and behaviour European University Institute
DOI: 10.2870/93798