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Consider a monopolist who sells a durable good, and repairs the good if it breaks down. Suppose that contracts that specify future repair prices cannot be written, so that there is an aftermarket" situation. When consumers are risk-averse, the monopolist chooses inefficiently high repair prices;...
Persistent link: https://www.econbiz.de/10011092790
We analyze the incidence and welfare e¤ects of unit sales taxes in experimental monopoly and Bertrand markets. We nd …, in line with economic theory, that rms with no market power are able to shift a high share of a tax burden on to … consumers, independent of whether buyers are automated or human players. In monopoly markets, a monopolist bears a large share …
Persistent link: https://www.econbiz.de/10011090400
For many goods (such as experience goods or addictive goods), consumers' preferences may change over time.In this paper, we examine a monopolist's optimal pricing schedule when current consumption can affect a consumer's valuation in the future and valuations are unobservable.We assume that...
Persistent link: https://www.econbiz.de/10011092378
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This paper shows that cross-border mergers are more likely to occur in industries which serve multiple segmented markets rather than a single integrated market, given that cost functions are strictly convex. The product price rises in the market where an acquisition is made but falls in the...
Persistent link: https://www.econbiz.de/10011090710
Abstract This paper develops a theoretical framework where a multinational firm (MNE) is allowed to acquire or sell a productive asset in multiple segmented asset markets. The asset is used to produce a final good which can be sold in multiple countries, with segmented product markets,...
Persistent link: https://www.econbiz.de/10011090725
trade-off between inducing efficiency and raising revenues from the monopoly. …
Persistent link: https://www.econbiz.de/10011090731
incumbent’s monopoly rents. Thus, in equilibrium, the incumbent can offer high enough an upfront payment to induce all retailers …
Persistent link: https://www.econbiz.de/10011091426
We report experimental results on exclusive dealing inspired by the literature on "naked exclusion". Our key findings are: First, exclusion of a more efficient entrant is a widespread phenomenon in lab markets. Second, allowing incumbents to discriminate between buyers increases exclusion rates...
Persistent link: https://www.econbiz.de/10011091667