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prices and increasingprofits. Welfare falls because of the uncertainty in the bargaining process, which generates …
Persistent link: https://www.econbiz.de/10011133058
We study price competition between firms over public list or posted prices when a fraction of consumers (termed 'bargainers') can subsequently receive discounts with some probability.  Such stochastic discounts are a feature of markets in which some consumers bargain explicitly; of markets in...
Persistent link: https://www.econbiz.de/10011004203
pricing and bargaining when price takers buy at posted prices but bargainers attempt to negotiate discounts.  The optimal … bargaining strategy involves the firms offering bargainers randomly-sized discounts.  Competing firms keep posted prices high to …' strategic decision about how much bargaining discretion sales staff should be allowed.  Both firms allowing full bargaining …
Persistent link: https://www.econbiz.de/10008469784
List prices are not completely credible as take it or leave it prices: buyers are able to seek reductions by bargaining …
Persistent link: https://www.econbiz.de/10004977849
those who don`t bargain and the bargained prices for those who were already bargaining rise: sellers have a greater … Authority exhortations to bargain can therefore be misplaced. We also consider the implications for optimal seller bargaining. …
Persistent link: https://www.econbiz.de/10004977885
This paper analyses the implications of bargaining between buyers and sellers on the competitive outcome in a … homogeneous good industry. Bargaining creates a competitive equilibrium in which some inefficient sellers coexist with efficient … price dispersion but transaction price uniformity. The bargaining models is not observationally equivalent to Bertrand …
Persistent link: https://www.econbiz.de/10004977892
-competitive theories of bargaining and efficiency wages. …
Persistent link: https://www.econbiz.de/10011152492
, we present an experimental test of the effect of common fate in bargaining settings. Virtually all subjects …
Persistent link: https://www.econbiz.de/10005047846
Negotiations often take long a time even if a delay in the agreement is inefficient. One typical explanation is the … pointing out that this result does not hold once the traded quantity is not fixed as in most bargaining models; the quantity …. We then study how a signal arriving in the course of negotiations affects the delay in the agreement. Unlike investment …
Persistent link: https://www.econbiz.de/10005047880
In an asymmetric war of attrition the players` prize valuations are drawn from different distributions. A stochastic strength ordering, based upon relative hazard rates, is used to rank these distributions. The stochastically stronger player is perceived to be strong ex ante, even though her...
Persistent link: https://www.econbiz.de/10005047908