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Legros, Patrick; Stahl, Konrad - C.E.P.R. Discussion Papers - 2002

. The effect of increased global competition on prices is much less clear. While it yields a price reduction under monopoly …

Persistent link: https://www.econbiz.de/10005498025

A Quantitative Analysis of the Retail Market for Illicit Drugs

Galenianos, Manolis; Gavazza, Alessandro - C.E.P.R. Discussion Papers - 2015

We develop a theoretical framework to study illicit drugs markets and we estimate it using data on purchases of crack cocaine. Buyers are searching for high-quality drugs, but they determine drugs' quality (i.e., their purity) only after consuming them. Hence, sellers can rip off first-time...

Persistent link: https://www.econbiz.de/10011145480

Screening, Cross-Border Banking and the Allocation of Credit

Gehrig, Thomas - C.E.P.R. Discussion Papers - 1998

We analyse competition among banks when banks can use creditworthiness tests that generate (imperfect) information about borrowers. When banks can strategically adjust the test characteristics by investing resources in the screening technology, we show that credit markets are not easily...

Persistent link: https://www.econbiz.de/10005124296

Chicken and Egg: Competing Matchmakers

Caillaud, Bernard; Jullien, Bruno - C.E.P.R. Discussion Papers - 2001

We examine a Bertrand competition game between two intermediaries offering matching services between two sides of a market. Indirect network externalities arise as the probability of finding one's match with a given intermediary increase with the number of agents of the other side who use the...

Persistent link: https://www.econbiz.de/10005136667

Loan Sales and Screening Incentives

Bester, Helmut; Gehrig, Thomas; Stenbacka, Rune - C.E.P.R. Discussion Papers - 2012

We analyze the effect of loan sales on the intensity of costly screening. Loan sales strengthen screening incentives when screening primarily improves the bank’s ability to identify profitable loans and when banks retain most of those profitable loans. However, loan sales dampen screening...

Persistent link: https://www.econbiz.de/10011083726

Adverse Selection and Moral Hazard in Anonymous Markets

Klein, Tobias; Lambertz, Christian; Stahl, Konrad - C.E.P.R. Discussion Papers - 2013

We study the effects of improvements in eBay's rating mechanism on seller exit and continuing sellers' behavior. Following a large sample of sellers over time, we exploit the fact that the rating mechanism was changed to reduce strategic bias in buyer rating. That improvement did not lead to...

Persistent link: https://www.econbiz.de/10011084388

Revolutionary Effects of New Information Technologies

den Berg, Gerard J van - C.E.P.R. Discussion Papers - 2005

In markets with imperfect information and heterogeneity, the information technology affects the rate at which agents meet, which in turn affects the distribution of production technologies across firms. We show that in models for such markets there are typically multiple equilibria because...

Persistent link: https://www.econbiz.de/10005788903

Dynamic Monopoly Pricing and Herding

Bose, Subir; Orosel, Gerhard O; Ottaviani, Marco; … - C.E.P.R. Discussion Papers - 2005

This paper studies dynamic pricing by a monopolist selling to buyers who learn from each other’s purchases. The price … learning by charging a price that results in information revelation. Nonetheless in the long run, the monopolist generally …

Persistent link: https://www.econbiz.de/10005792093

Informative Advertising and Product Differentiation

Christou, Charalambos; Vettas, Nikolaos - C.E.P.R. Discussion Papers - 2003

. Increasing the number of firms may increase or decrease the market price. We emphasise that quasi-concavity of profits may fail …, as firms may prefer a high price deviation, targeting consumers that only become informed about their product (a feature …

Persistent link: https://www.econbiz.de/10005656408

Competing with Network Externalities and Price Discrimination

Jullien, Bruno - C.E.P.R. Discussion Papers - 2001

This Paper examines competition between a dominant network and a challenging network with third-degree or perfect price … other, and is interpreted as a reputation effect. Price-discrimination in this context has a strong impact because cross … perfect price-discrimination, both networks prefer to be compatible. Price-discrimination promotes efficiency by reducing the …

Persistent link: https://www.econbiz.de/10005661635

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