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Your Weekly Digest | Issue 37

Valur Thrainsson
2 min read

Good morning,

This might be a little bit too late, but Happy New Year.

Here below you find the most read articles on CompetitionFeed over the last week.


Viacom, CBS not in active merger discussions: sources

(Reuters) - Viacom Inc (VIAB.O) and CBS Corp (CBS.N) are not in active merger discussions, although controlling shareholder Shari Redstone has had exploratory conversations with CBS directors about recombining the companies, two sources familiar with the situation told Reuters on Friday. Read More.

Kluwer Competition Law Blog

Bundeskartellamt sends preliminary assessment to Facebook

Silke HeinzOn December 19, 2017, the Federal Cartel Office (“FCO”) published a press release on its preliminary assessment in the ongoing Facebook dominance probe, accompanied by a background paper... Read More.

The “Quiet Life” Hypothesis Is Real: Managers Will Put Off Hard Decisions If They Can

In competitive markets, managers have a strong incentive to give their best effort. But economists have long argued that when companies are insulated from competition, their managers may not be motivated to maximize the profit of the firm and instead may choose to enjoy the “quiet life.” Read More.

International Journal of Industrial Organization

Measuring the Competitive Impact of the Internet: Evidence from a Natural Experiment in Broadband Access

Georg Gebhardt​

  • I identify the causal effect of online competition on offline competition.
  • I exploit that consumers in some German municipalities lack broadband access due to legacy glass fibre cables. In these areas with reduced online competition,
  • I find that offline employment in electronics retailing grows faster than in the control areas. Read More.

CEPR Discussion Paper

The Effects of Mandatory Disclosure of Supermarket Prices

Itai Ater, Tel Aviv University - Coller School of Management and Oren Rigbi, Ben-Gurion University of the Negev
We study how mandatory online disclosure of supermarket prices affects prices and price dispersion in brick-and-mortar stores. Finally, we show that prices declined as more consumers used price-comparison websites, and we highlight the role of media coverage in encouraging retailers to set lower prices.Read More.


Resale Price Maintenance in Franchising: Hardcore Restriction of Competition or Necessary Element of Such Business Model?

Konrad Kohutek
Franchising is one of the most popular business models often used in many economic sectors. This paper contains a critical analysis of the current antitrust regime on RPM in franchising. It has been presented against the background of the Polish case against Sfinks, i.e. the company, which has been fined (ca. 110.000 Euro) for the use of a uniform price list in restaurants operated by its franchise network. Read More.

ZEW - Centre for European Economic Research Discussion Paper

Patterns of Entry and Exit in the Deregulated German Interurban Bus Industry

Niklas Dürr and Kai Hüschelrath
We study patterns of entry and exit in the German interurban bus industry in the first three years after its deregulation in January 2013. Using a comprehensive data set of all firm and route...Read More.

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Best wishes, CompetitionFeed Team

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