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The extant theory on price discrimination in input markets takes the structure of the intermediate industry as exogenously given. This paper endogenizes the structure of the intermediate industry and examines the effects of banning third-degree price discrimination on market structure and...
Persistent link: https://www.econbiz.de/10003954080
We consider a monopolistic supplier's optimal choice of wholesale tariffs when downstream firms are privately informed about their retail costs. Under discriminatory pricing, downstream firms that differ in their ex ante distribution of retail costs are offered different tariffs. Under uniform...
Persistent link: https://www.econbiz.de/10009375743
al. (2017), we evaluate and confirm two core claims of the superstar firm hypothesis: the concentration of sales among … firms within industries has risen across much of the private sector; and industries with larger increases in concentration …
Persistent link: https://www.econbiz.de/10012963787
firms in each industry, product market concentration will rise as industries become increasingly dominated by superstar … increasingly concentrate in a small number of firms; industries where concentration rises most will have the largest declines in … share will be greatest in the sectors with the largest increases in market concentration; and finally, such patterns will be …
Persistent link: https://www.econbiz.de/10012956029
firms in each industry, product market concentration will rise as industries become increasingly dominated by superstar … increasingly concentrate in a small number of firms; industries where concentration rises most will have the largest declines in … share will be greatest in the sectors with the largest increases in market concentration; and finally, such patterns will be …
Persistent link: https://www.econbiz.de/10011647664
al. (2017), we evaluate and confirm two core claims of the superstar firm hypothesis: the concentration of sales among … firms within industries has risen across much of the private sector; and industries with larger increases in concentration …
Persistent link: https://www.econbiz.de/10011612751
The so called flat-rate bias is a well documented phenomenon caused by consumers’ desire to be insured against fluctuations in their billing amounts. This paper shows that expectation-based loss aversion provides a formal explanation for this bias. We solve for the optimal two-part tariff when...
Persistent link: https://www.econbiz.de/10003987825
In this note we consider the preferences of a profit maximizing firm for international ownership in a world in which firms compete in an international Cournot oligopoly, and in which countries use strategic trade policy. We find that firms prefer national ownership and show that full...
Persistent link: https://www.econbiz.de/10011506470
We study the profitability incentives of merger and the endogenous industry structure in a strategic trade policy environment. Merger changes the strategic trade policy equlilibrium. We show that merger can be profitable and welfare enhancing here, even though it would not be profitable in a...
Persistent link: https://www.econbiz.de/10011507913
The so called flat-rate bias is a well documented phenomenon caused by consumers; desire to be insured against fluctuations in their billing amounts. This paper shows that expectation-based loss aversion provides a formal explanation for this bias. We solve for the optimal two-part tariff when...
Persistent link: https://www.econbiz.de/10009236785