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This paper analyzes a duopoly model with stochastic demand in which firms first choose their strategy variable and compete afterwards. Contrary to the existing literature, we show that firms do not always choose a quantity which is the variable that induces a smaller degree of competition. The...
Persistent link: https://www.econbiz.de/10003470531
marketplaces, which can be detrimental to customers and social welfare. We study a broad class of assortment decisions routinely …
Persistent link: https://www.econbiz.de/10013211212
Retail assortment planning can have a tremendous impact on a retailer's bottom line performance. Over the past years …, retailers have increasingly relied on their leading manufacturers for recommendations regarding the assortment to be offered to … the consequences of using category captains for assortment selection decisions. We develop a game theoretic model where …
Persistent link: https://www.econbiz.de/10014045818
The Trust Game describes a situation where mutually beneficial trade is endangered by opportunistic exploitation. In … competing outcomes should be expected, i.e. whether or not banks can indeed promote trade. …
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. Agents receive private taste/inventory shocks and trade continuously. Agents differ in their need for trade as well as the … cost to hold excessive inventory. In equilibrium, trade is gradual. Trading speed depends on the number and market power of … participants, and trade among large market participants is slower than that among small ones. Price has momentum due to the actions …
Persistent link: https://www.econbiz.de/10011865023
is discouraged when trade costs fall. This seems to conflict with the experience of the 1990s, when trade liberalisation … and technological change led to dramatic reductions in trade costs yet FDI grew much faster than trade. Two possible … resolutions to this paradox are explored. First, horizontal FDI in trading blocs is encouraged by intra-bloc trade liberalisation …
Persistent link: https://www.econbiz.de/10014215081
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