Working Paper No. 560

Strategic Investment and Market Integration

Publicerad: June 27, 2001 Antal sidor: 30Nyckelord: Entry Deterrence; Multi-Market Competition; Market IntegrationJEL-koder: F12; F15; L12

Strategic Investment and Market Integration Mattias Ganslandt


The competitive effect of international market integration in industries with imperfect competition is of great policy interest. This paper focuses on the link between monopolization and market segmentation. It presents a model of multi-market entry deterrence with or without market commitments. We derive sufficient conditions for entry deterrence with productive capacity in the multi-market game. It is shown that to deter entry in the multi-market game, the first-mover installs productions capacity which is strictly larger than the capacity needed to deter entry, if it is possible to assign parts of the capacity to specific markets. Market integration for production capacity may, thus, have a pro-competitive effect in international markets.

EU och teknologiskiftet. Europaperspektiv 2020

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Hur kan EU dra nytta av teknologiskiftet? Det är det övergripande temat i årets upplaga av Europaperspektiv, EU och teknologiskiftet. Två kapitel i årets upplaga är skrivna av IFN-forskare.

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