Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/43525 
Year of Publication: 
2010
Series/Report no.: 
Nota di Lavoro No. 2010,117
Publisher: 
Fondazione Eni Enrico Mattei (FEEM), Milano
Abstract: 
We consider a multimarket framework where a set of firms compete on two interrelated oligopolistic markets. Prior to competing in these markets, firms can spy on others in order to increase the quality of their product. We characterize the equilibrium espionage networks and networks that maximize social welfare under the most interesting scenario of diseconomies of scope. We find that in some situations firms may refrain from spying even if it is costless. Moreover, even though spying leads to increased product quality, there exist situations where it is detrimental to both consumer welfare and social welfare.
Subjects: 
Oligopoly
Multimarket
Networks
JEL: 
C70
L13
L20
Document Type: 
Working Paper

Files in This Item:
File
Size
535.04 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.