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One-Way Compatibility, Two-Way Compatibility and Entry in Network Industries

Manenti, Fabio M.; Somma, Ernesto - EconWPA - 2002

We study the strategic choice of compatibility between two initially incompatible network goods in a two-stage game played by an incumbent and an entrant firm. Compatibility may be achieved by means of a converter. We derive a number of results under different assumptions about the nature of the...

Persistent link: https://www.econbiz.de/10005134422

The Competitive Effects of Price-Floors

Bhaskar, V.; UK, Andrews KY16 9AL - EconWPA - 1996

We analyze the effects of a legally-binding price floor using Hotelling's model of locational competition. A moderate price-floor destroys the maximal differentiation equilibrium of d'Aspremont et. al., by allowing firms to compete more aggressively for market share. Minimum differentiation...

Persistent link: https://www.econbiz.de/10005134523

The Control of Porting in Two-Sided Markets

Pollock, R. - Faculty of Economics, University of Cambridge - 2007

A sizable literature has grown up in recent years focusing on two-sided markets in which economies of scale combined with complementarities between a platform and its associated ‘software’ or ‘services’ can generate indirect network effects (that is positive feedback between the number...

Persistent link: https://www.econbiz.de/10005113747

Practice Makes Perfect: On Professional Standards

Sällström Matthews, S.E. - Faculty of Economics, University of Cambridge - 2007

Practising is a matter of increasing the reliability of ones skills rather than relying on a tool or a strike of genius to get it right. Once perfection has been achieved the individual will aim for higher quality since the effort is more likely to be worthwhile. Furthermore because the returns...

Persistent link: https://www.econbiz.de/10005113798

An Analysis of Advertising Wars

Haller, Hans; Chakrabarti, Subhadip - EconWPA - 2003

Comparative advertising by one brand against another showcases its merits versus the demerits of the other. In a two … advertising configuration, firms compete as Cournot oligopolists. In the symmetric case, equilibrium advertising constitutes a … clear welfare loss. Equilibrium advertising levels and advertising expenditures decline with rising advertising costs …

Persistent link: https://www.econbiz.de/10005125038

An Analysis of Advertising Wars

Haller, Hans; Chakrabarti, Subhadip - EconWPA - 2003

Persistent link: https://www.econbiz.de/10005134959

AGRO-FOOD PRODUCTS AND TECHNICAL BARRIERS TO TRADE: A SURVEY OF ISSUES AND CONCERNS RAISED IN THE WTO'S TBT COMMITTEE

Walkenhorst, Peter - EconWPA - 2004

This study presents a survey of issues and concerns raised in the WTO's Committee on Technical Barriers to Trade, with particular emphasis on discussions related to agro-food products. It thereby aims to provide background information on TBT-related activities during the period 1995- 2001. The...

Persistent link: https://www.econbiz.de/10005062591

Moral Hazard and Private Monitoring

Bhaskar, V.; Damme, Eric van - EconWPA - 1998

We analyze a model of repeated bilateral trade with moral hazard, where the quality of goods received can differ from the quality despatched due to deterioration during transportation. Since the sender does not observe the quality of good received and the receiver does not observe the quality...

Persistent link: https://www.econbiz.de/10005407576

The Magnitude of Menu Costs: Direct Evidence from Large U.S. Supermarket Chains

Levy, Daniel; Bergen, Mark; Dutta, Shantanu; Venable, Robert - EconWPA - 2005

We use store-level data to document the exact process of changing prices and to directly measure menu costs at five multi-store supermarket chains. We show that changing prices in these establishments is a complex process, requiring dozens of steps and a nontrivial amount of resources. The menu...

Persistent link: https://www.econbiz.de/10005412630

Heterogeneity in Price Rigidity: Evidence from a Case Study Using Micro-Level Data

Levy, Daniel; Dutta, Shantanu; Bergen, Mark - EconWPA - 2004

We combine two data sets to study price rigidity. The first consists of weekly time series of retail, wholesale, and spot prices for twelve products. These time series contain two exogenous cost shocks. We find that prices exhibit more rigidity in response to the second shock than the first. The...

Persistent link: https://www.econbiz.de/10005412696