Showing 1 - 10 of 125
This paper generalizes the frequently used Hotelling model for two-sided markets in order to determine the equilibrium …
Persistent link: https://www.econbiz.de/10005029256
Afriat (1967) showed the equivalence of the strong axiom of revealed preference and the existence of a solution to a set of linear inequalities. From this solution he constructed a utility function rationalizing the choices of a competitive consumer. We extend Afriat’s theorem to a class of...
Persistent link: https://www.econbiz.de/10005196223
extracted, and optimal depletion of open fields follows a (modified) Hotelling rule. Opening a new field involves sinking a … both depletion and field opening, and supply responses to price changes are studied. In contrast to Hotelling, the long run …
Persistent link: https://www.econbiz.de/10009324093
This paper provides a formal survey of price and quantity instruments for mitigating global warming. We explicitly consider policies’ impact on the incentives of resource owners who maximize their profits intertemporally. We focus on the informational and commitment requirements of the...
Persistent link: https://www.econbiz.de/10008596574
of taxation and public good provision. Hotelling’s Principle of Minimum Differentiation is applied in the context of tax … some extent, perfect tax discrimination presents a solution to the existence problem created by Hotelling tax competition …, but that the efficiency problem of Hotelling tax competition is exacerbated. …
Persistent link: https://www.econbiz.de/10005181496
empirical results to implications of Hotelling-type resource extraction models. The empirical analysis shows that oil prices are …
Persistent link: https://www.econbiz.de/10009371347
We consider the interaction between an incumbent firm and a potential entrant, and examine how this interaction is affected by demand fluctuations. Our model gives rise to procyclical entry, prices, and price-cost margins, although the average price in the market can be countercyclical if the...
Persistent link: https://www.econbiz.de/10010877829
A principal uses security bid auctions to award an incentive contract to one among several agents in the presence of hidden action and hidden information. Securities range from cash to equity and call options. “Steeper” securities are better surplus extractors that narrow the gap between the...
Persistent link: https://www.econbiz.de/10010877882
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/10010877898
introduce individual demand uncertainty into Hotelling’s model of product differentiation and show that firms offer advance …
Persistent link: https://www.econbiz.de/10010877946