Business Intelligence and Multimarket Competition

Abstract

We consider a multimarket framework where a set of firms compete on two oligopolistic markets. The cost of production of each firm allows for spillovers across markets, ensuring that output decisions for both markets have to be made jointly. Prior to competing in these markets, firms can establish business intelligence gathering links with other firms. A link formed by a firm generates two types of externalities for competitors and consumers. We characterize the business intelligence equilibrium networks and networks that maximize social welfare. By contrast with single-market competition, we show that in multimarket competition there exist situations where intelligence-gathering activities are underdeveloped with regard to social welfare and should be tolerated, if not encouraged, by public authorities.

Growth strategy with social capital, human capital and physical capital—Theory and evidence: The case of Vietnam

“…Leana and van Buren () coined the term organizational social capital to denote “a resource reflecting the character of social relations within the firm.” Indeed, social capital accelerates firms' access to resources that are not under their control through providing a finer grained information set (Uzzi, ) and/or giving much information about new innovation (Burt, ) and potential employees (Burt, ; Fernandez, Castilla, & Moore, ). Therefore, firms could reduce transaction costs and achieve higher profitability levels (Appold, ; Billand, Bravard, Chakrabarty, & Sarangi, ; Dev, ; Fujita & Thisse, ; Sabel, ; Scott, ).…”

Equal treatment and socially optimal R&D in duopoly with one‐way spillovers

“…That spillovers are an important aspect of firms' overall business strategy is well documented (see, e.g., Billand, Bravard, Chakrabarti, & Sarangi, , for an overview of the related literature). In addition, there are multiple channels through which spillovers might flow, including in trade‐related contexts (see, e.g., Ferrier, Reyes, & Zhu, ).…”

“…Clearly, because spillovers vanish under this type of cooperation, the same results obtain with deterministic one-way R&D spillovers. 5 In the third and most important part of the paper, we consider a benevolent central planner with a second-best mandate, that is, one that can decide on R&D investments without intervening as far as market conduct is concerned (as 2 That spillovers are an important aspect of firms' overall business strategy is well documented (see, e.g., Billand, Bravard, Chakrabarti, & Sarangi, 2016, for an overview of the related literature). In addition, there are multiple channels through which spillovers might flow, including in trade-related contexts (see, e.g., Ferrier, Reyes, & Zhu, 2016). in Suzumura, 1992).…”

Essays in applied microeconomic theory

“…Maximizing the latter expression with respect to γ yields a unique argmax of γ * ≈ 0.943, and a corresponding maximal value of L W equal to 0.446. 16 We have just established part (ii) of the following result (part (i) follows directly from evaluating and signing dL/dβ and dL/dγ. This is easy to do, thus left to the reader).…”

“…That spillovers are an important aspect of firms' overall business strategy is welldocumented (see e.g.,Billand et al (2016) for an overview of the related literature). In addition, there are multiple channels through which spillovers might flow, including in trade-related contexts (see e.g., Ferrier et.…”