Showing 1 - 10 of 27
This paper examines the effect of Wal-Mart's entry into Mexico on Mexican manufacturers of consumer goods. Guided by firm interviews that suggested substantial heterogeneity across firms in how they responded to Wal-Mart's entry, we develop a dynamic industry model in which firms decide whether...
Persistent link: https://www.econbiz.de/10009275963
producer for consumer electronics. We observe input prices of firms, and all their moves in the entry and the pricing game over …
Persistent link: https://www.econbiz.de/10011083898
This Paper analyses the impact of retail mergers on product variety. We show that a merging firm may want to enhance its buyer power vis a vis suppliers by delisting products and committing to a ‘single-sourcing’ purchasing strategy. Anticipating this, suppliers will strategically choose to...
Persistent link: https://www.econbiz.de/10005791918
We develop a model of competition between retailer chains with a structural estimation of the demand and supply in the supermarket industry in France. In the model, supermarkets compete in price and brand offer over all food products to attract consumers, in particular through the share of...
Persistent link: https://www.econbiz.de/10008530346
This Paper develops an argument explaining why retail prices may rise in response to the deregulation of opening hours. We make this point in a model of imperfect duopolistic competition. In a deregulated market retailers view the choice of opening hours as a means to increase the degree of...
Persistent link: https://www.econbiz.de/10005497961
This Paper investigates how the formation of larger buyers affects a supplier's profits and, by doing so, his incentives to undertake non-contractible activities. We first identify two channels of buyer power, which allows larger buyers to obtain discounts. We subsequently examine the effects of...
Persistent link: https://www.econbiz.de/10005661473
An uninformed seller offers an object to a privately informed buyer. The buyer projects information and exaggerates the probability that the seller is informed. Letting the buyer bargain and name her own price raises the seller's payoff above the full-commitment payoff. Under seller-offer...
Persistent link: https://www.econbiz.de/10011168901
Pricing policy for any experience good faces a key tradeoff. On one hand, a price reduction increases immediate demand … comparison effect, decrease subsequent demand. This tension is particularly important for the distribution of health products in … low-income countries, where free or heavily subsidized distribution is a common but controversial practice. Based on a …
Persistent link: https://www.econbiz.de/10011083717
This paper models payment evasion as a source of profit by letting the firm choose the purchase price and the fine imposed on detected payment evaders. For a given price and fine, the consumers purchase, evade payment, or choose the outside option. We show that payment evasion leads to a form of...
Persistent link: https://www.econbiz.de/10011276378
In this paper, we examine how cross-market price restrictions impact strategic entry and pricing decisions. A …
Persistent link: https://www.econbiz.de/10005792026