Dissertation/Thesis Abstract

A dominant firm strategy and its effect on the capital structure of non-dominant firms in the self service discount stores industry and auctions for radio spectrum to mobile services in Mexico
by Hibert Sanchez, Abel Mauro, Ph.D., Instituto Tecnologico y de Estudios Superiores de Monterrey (Mexico), 2013, 208; 3585550
Abstract (Summary)

In an industry characterized by oligopolistic market structures there are generally firms that have enough market power as to influence the pricing and output decisions of all participants, forcing others to follow the strategies decided by the dominant firm(s) with very little opportunity to do otherwise (Besanko et al 2010, Tirole 1990). When a dominant firm is at the same time part of a larger corporation, and due to the financial support it is likely to have from its parent, it has the capacity to support an above-average, constant long-term investment strategy as a logical reaction to protect (or minimize) the loss of market share, and the rest of the participants in the industry are expected to also make an attempt to increase their investments, permanently affecting their long-term capital structure strategy (Chevalier 1995). This dissertation’s contribution to the literature in the field consists on presenting an empirical analysis of the capital structure decisions of the non-dominant firms in the Self-Service Discount Stores Industry (SSDSI) that result from the rapid expansion of Wal-Mart in the Mexican market, as well as an empirical analysis of the investment decisions in radiofrequencies of the incumbents firms in the capital structure of the other firms in the Mobile sector in Mexico.

Keywords (Industrial organization, Economics of Strategy, market structure, oligopolistic competition, capital structure, conditioned investment, market concentration, supermarket sector, spectrum auctions).

Indexing (document details)
Advisor: Ibarra-Yunez, Alejandro
School: Instituto Tecnologico y de Estudios Superiores de Monterrey (Mexico)
School Location: Mexico
Source: DAI-A 75/06(E), Dissertation Abstracts International
Subjects: Management, Economics
Keywords: Capital structure, Conditioned investment, Economics of strategy, Industrial organization, Oligopolistic competition, Supermarket sector
Publication Number: 3585550
ISBN: 9781303801242