Luís M. B. Cabral

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I uncover a new force towards increasing dominance (the property whereby, in dynamic games, the leader tends to increase his or her lead in expected terms). The new effect results from the strategic choice of covariance in races. I assume that players must choose not the amount of resources to spend but how to allocate those resources. I show that, in(More)
I survey a number of stylized facts pertaining to the dynamics of firm entry, growth, and exit in competitive industries. I focus particularly on data for Portugal, although I also consider, for comparison purposes, data from other countries. I then present a series of theoretical models that attempt to explain the stylized facts and evaluate the welfare(More)
We study oligopoly price competition between multiproduct firms, firms whose products interact in the profit function. Specifically, we focus on the impact of intra-firm product interactions on the level of equilibrium profits. This impact is divided into two effects: a direct effect and a strategic effect (i.e., through the competitors’ actions). We derive(More)
A number of products that display positive network effects are used in variable quantities by heterogeneous customers. Examples include corporate operating systems, infrastructure software, web services and networking equipment. In many of these contexts, the magnitude of network effects are influenced by gross consumption, rather than simply by user base.(More)
The idea that self-fulfilling expectations can lead an inferior platform to triumph in the face of better alternatives has now become standard in the economics literature and features prominently in many textbooks (see, for instance, Luis M. B. Cabral, 2000). Yet, despite the long passage of time since David’s piece was first published, the datedness of the(More)
This note comments on Feuerstein’s (Feuerstein, Switgard, BCollusion in industrial economics: A survey,^ forthcoming in Journal of Industry, Competition and Trade, 2005) survey of collusion theory. I start by presenting evidence from a recent real-world collusion case: the lysine industry. Based on this, I point out a few areas where collusion theory can(More)
W study oligopoly price competition between multiproduct firms—firms whose products interact in the profit function. Specifically, we focus on the impact of intrafirm product interactions on the level of equilibrium profits. This impact may be decomposed in two different ways: (a) a direct effect (keeping the competitors’ actions fixed) plus a strategic(More)
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