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This paper studies the effect of nonlinear pricing on markups and misallocation. We develop a general equilibrium model … of firms that are allowed to set a quantity-dependent pricing schedule--contrary to the typical assumption in … macroeconomic models. Without the restriction to linear pricing, markup heterogeneity is no longer a sign of misallocation. Larger …
Persistent link: https://www.econbiz.de/10015145095
In this paper we present and solve a three-stage game of entry, location, and pricing in a spatial price discrimination …
Persistent link: https://www.econbiz.de/10012463671
We illuminate the relationship between optimal firm pricing and optimal trade policy by exploring a generalized model …, because firms play an important preemptive role in optimally pricing unique varieties. We contrast this with standard …
Persistent link: https://www.econbiz.de/10012465524
settings, such as devising optimal pricing strategies for firms, assessing how price discrimination affects consumers, and … range of modern pricing practices, including menus of pricing plans. This analysis yields a simpler and more general …
Persistent link: https://www.econbiz.de/10012466295
inconsistent with dynamic theories of pricing that predict lower prices and coupons after periods of low demand, and find little …
Persistent link: https://www.econbiz.de/10012471875
it is detected. We propose a theory of "equilibrium price cutting and business stealing" in cartels to bridge this gap … between theory and observation …
Persistent link: https://www.econbiz.de/10012458671
We quantify a class of commonly-employed general equilibrium models of international trade and pricing-to-market that …
Persistent link: https://www.econbiz.de/10012457260
competitive equilibrium arises with cocktail products because firms can internalize partially the externality their pricing …
Persistent link: https://www.econbiz.de/10012462336
I study the positive relationship between prices of tradable goods and per-capita income. I develop a highly tractable general equilibrium model of international trade with heterogeneous firms and non-homothetic consumer preferences that positively links prices of tradables to consumer income....
Persistent link: https://www.econbiz.de/10012462422
Economists have well-developed theories that challenge the wisdom of the common practice of uniform pricing. With …-specific pricing, various forms of bundling, two-part tariffs, nonlinear pricing, and third-degree price discrimination. Using survey …. Revenue could be raised by between a sixth and a third relative to profit-maximizing uniform pricing. While person …
Persistent link: https://www.econbiz.de/10012463259