Showing 1 - 10 of 51
We analyze third degree price discrimination by an upstream monopolistto a continuum of heterogeneous downstream firms … firms receive personalized prices whereas efficient firms arecharged a uniform price. The extreme cases of complete price … discriminationand uniform price arise in our setting as particular cases, depending on the costof customizing prices. …
Persistent link: https://www.econbiz.de/10005212563
advertising creates subjective product differentiation and changes the nature of subsequent price competition. The pricing stage of …
Persistent link: https://www.econbiz.de/10005731293
We consider an upstream firm selling an input to several downstream firms through observable two-part tariff contracts. Downstream firms can alternatively buy the input from a less efficient source of supply. We show that downstream mergers lead to lower wholesale prices. They translate into...
Persistent link: https://www.econbiz.de/10005731303
In this paper we get the optimal two-part tariff contract for the licensing of a cost reducing innovation to a differentiated goods industry of a general size. We analyze the cases where the patentee is an independent laboratory or an incumbent firm. We show that, regardless of the number of...
Persistent link: https://www.econbiz.de/10005731391
This paper analyzes how the existence of upstream market power affects endogenous quality choice in a setting where two downstream firms are locked in a bilateral monopoly with their own input suppliers. The main result is that the degree of product differentiation is reduced as upstream market...
Persistent link: https://www.econbiz.de/10008752934
I analyze the implications of bundling on price competition in a market with complementary products. Using a model of …
Persistent link: https://www.econbiz.de/10005515895
In this paper, we suggest a method to test price-fixing agreements. Prices fixed to multiple shipments are decomposed …
Persistent link: https://www.econbiz.de/10005731109
We consider the role of the endogenous choice of platform quality in a broadcasting duopoly market where competing media platforms choose also their level of advertising. We compare the equilibrium levels of quality, advertising and welfare under private and mixed duopoly competition. We show...
Persistent link: https://www.econbiz.de/10009652488
Recent empirical evidence provided by Bernard et al. (2010) and Broda and Weinstein (2010) shows that a significant share of product creation and destruction in U.S. industries occurs within existing firms and accounts for a relevant share of aggregate output. In the present paper, and...
Persistent link: https://www.econbiz.de/10009321867
neglected the consequences of extending competition between firms to the non-price dimension. This paper tries to fill this gap … by enriching the canonical New Keynesian framework to include both price and non-price competition. This has important …, dampens the overall degree of real rigidities in price-setting. …
Persistent link: https://www.econbiz.de/10005039611