https://httrksk.github.io/tags/industrial-organization/Recent content in Industrial Organization on Keisuke HattoriHugo -- gohugo.ioenTue, 15 Sep 2026 10:00:00 +0900https://httrksk.github.io/post/20260915/Tue, 15 Sep 2026 10:00:00 +0900https://httrksk.github.io/post/20260915/<h4 id="background">Background</h4> <p>Firms usually try to become more competitive by expanding capacity, reaching more customers, and lowering costs. When a business closes a plant or leaves a profitable market, we tend to assume that something has gone wrong.</p> <p>This paper examines theoretically <strong>whether deliberately becoming less competitive can encourage industry consolidation through rival mergers and ultimately increase a firm&rsquo;s own profit</strong>.</p>https://httrksk.github.io/post/20260907/Mon, 07 Sep 2026 10:00:00 +0900https://httrksk.github.io/post/20260907/<h4 id="background">Background</h4> <p>A new competitor is usually unwelcome news for an existing business. More firms compete for the same customers, making it harder for each to earn a profit.</p> <p>But firms sometimes help cultivate the market in which they compete. Hotels and restaurants promote a tourist destination; producers advertise a product category; businesses contribute to shared infrastructure that attracts customers. In these settings, <strong>a new entrant is both an additional rival and an additional contributor to the market&rsquo;s development</strong>.</p>