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  • BARRY NALEBUFF, Kyle Bagwell, +6 authors Michael Rior
  • 2004
In this paper we look at the case for bundling in an oligopolistic environment. We show that bundling is a particularly effective entry-deterrent strategy. A company that has market power in two goods, A and B, can, by bundling them together, make it harder for a rival with only one of these goods to enter the market. Bundling allows an incumbent to(More)
* This paper has benefited greatly from many discussions with Meghan Busse and especially Birger Wernerfelt. I also thank four anonymous reviewers, Abstract This paper shows how firms' pricing and communications strategies may be affected by size of the Internet: firms have incentives to facilitate consumer search on the Internet, but only as long as the(More)
Federal, state and local governments use a variety of incentives to induce consumer adoption of hybrid-electric vehicles. We study the relative efficacy of state sales tax waivers, income tax credits and non-tax incentives and find that the type of tax incentive offered is as important as the value of the tax incentive. Conditional on value, we find that(More)
The U.S. government, media, and flying public have expressed great concern in recent years over both airline market concentration and flight delays. This study explores potential connections between the two by examining whether the lack of competition on a particular route results in worse on-time performance. Analysis of data from the U.S. Bureau of(More)
We investigate whether car buyers are myopic about future fuel costs. We estimate the e↵ect of gasoline prices on short-run equilibrium prices of cars of di↵erent fuel economies. We then compare the implied changes in willingness-to-pay to the associated changes in expected future gasoline costs for cars of di↵erent fuel economies in order to calculate(More)
A firm that knows that cutting price may trigger a price war must weigh present versus future gains and losses when considering such a move. The firm's financial situation can affect how it values such tradeoffs. Using data on 14 major airlines between 1985 and 1992, I test the hypothesis that firms in worse financial condition are more likely to start(More)
This paper addresses the question of how much the Internet lowers prices for new cars and why. Using a large dataset of transaction prices for new automobiles and referral data from Autobytel.com, we find that online consumers pay on average 1% less than do offline consumers. After controlling for selection, we find that using Autobytel.com reduces the(More)
This paper examines determinants of Olympic success at the country level. Does the U.S. win its fair share of Olympic medals? Why does China win 6% of the medals even though it has 1/5 of the world's population? We consider the role of population and economic resources in determining medal totals from 1960-1996. We also provide out of sample predictions for(More)
Committees and the creation of technical standards: A study of de jure standard setting at the Internet Engineering Task Force Abstract The emergence of a new industry standard can establish some firms in positions of market dominance and relegate others to obscurity. As a result, the creation of new technical standards is a high-stakes(More)