This study explores the importance of financial constraints and product market competition on share repurchase decision. We find that financially constrained firms are more likely to conduct debt-financed repurchases. Financially unconstrained firms, however, tend repurchases only when debt conditions favourable. also level industry is a significant factor behind managers’ decisions. High (low)...

We analyze how product line rivalry by multi-product oligopolists is affected by market size and product substitutability. We show that the width and degree of overlap in competing product lines is determined by the tension between two effects: the drive to “be where the demand is” and the desire to weaken competition and intra-firm product cannibalization. Product lines are shown to be wider a...

with increasing competition in today’s markets, the vital point for companies is to maintain their market shares. therefore, marketers try to vitalize the companies’ brands, in order to maintain their position in market. whereas, creation a new brand is very costly and time consuming and its chance of success is limited, nowadays, more than ever, marketers are trying to achieve their goals thro...

A firm contemplating improvements to its product attributes would be interested in the dollar value the market attaches to any potential product modification. In this paper, we derive a measure of market value such that the comparison of the measure against the incremental unit cost of the attribute improvement is key in deciding whether or not the attribute improvement is profitable. Competiti...

Recent empirical evidences show negative relationship between outsourcing and profitability. This paper provides a theoretical explanation for this phenomenon. In an oligopoly model, we show that firms earn lower profits in the outsourcing equilibrium compared to the situation where neither firm does outsourcing, and it holds irrespective of the intensity of competition. So, outsourcing creates...

we model a real-world case problem as a price competition model between two leader-follower supply chains that each of them consists of one manufacturer and one retailer. t he manufacturer produces partially differentiated products and sells to market through his retailer. the retailer sells the products of manufacturer to market by adding some values to the product and gains margin as a fracti...

P variety is an important strategic tool that firms can use to attract customers and respond to competition. This study focuses on the retail industry and investigates how stores manage their product variety, contingent on the presence of competition and their actual distance from rivals. Using a unique data set that contains all Best Buy and Circuit City stores in the United States, the author...

I study how the distribution of CEO talent and that of CEO compensation vary across industries, and how product market characteristics affect these distributions. I develop a general equilibrium model that incorporates the competitive assignment of CEOs to firms in a framework in which firms engage in imperfect product market—specifically, monopolistic—competition. I use the model to address th...