Business intelligence and multimarket competition

Pascal Billand, Christophe Bravard (), Subhadip Chakrabarti and Sudipta Sarangi
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Christophe Bravard: GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA [2016-2019] - Université Grenoble Alpes [2016-2019], UGA UFR FEG - Université Grenoble Alpes - Faculté d'Économie de Grenoble - UGA [2016-2019] - Université Grenoble Alpes [2016-2019]

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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.

Keywords: multi-market; competition (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (7)

Published in Journal of Public Economic Theory, 2016, Special Issue: "Networks and externalities", 18 (2), pp.248-267. ⟨10.1111/jpet.12180⟩

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Related works:
Journal Article: Business Intelligence and Multimarket Competition (2016)
Working Paper: Business intelligence and multi-market competition (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-01212135

DOI: 10.1111/jpet.12180

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