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Personalized Pricing with Imperfect Customer Recognition
Colombo, Stefano; Graziano, Clara; Pignataro, Aldo - 2023
We consider a duopoly model where firms can identify only a share of consumers, which is positively correlated with the consumer’ preferences. Firms charge personalized prices to the consumers they can recognize and a uniform price to the rest of consumers. The firms’ available information...
Persistent link: https://www.econbiz.de/10014348131
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Health values, preference inconsistency, and insurance demand
Wrede, Matthias - 2005
Several empirical studies provide evidence that their actual health state affects people's attitudes towards health and medical care in hypothetical health states. In the tradition of behavioural economics this paper considers the actual health state as a point of reference and builds a model...
Persistent link: https://www.econbiz.de/10010261396
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Competitive Imperfect Price Discrimination and Market Power
Belleflamme, Paul - 2019
Two duopolists compete in price on the market for a homogeneous product. They can 'profile' consumers, i.e., identify their valuations with some probability. If both firms can profile consumers but with different abilities, then they achieve positive expected profits at equilibrium. This...
Persistent link: https://www.econbiz.de/10012858202
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Asymmetric Information and Differentiated Durable Goods Monopoly : Intra-Period Versus Intertemporal Price Discrimination
Laussel, Didier; Van Long, Ngo; Resende, Joana - 2021
A durable good monopolist faces a continuum of heterogeneous customers who make purchase decisions by comparing present and expected price-quality offers. The monopolist designs a sequence of price-quality menus to segment the market. We consider the Markov Perfect Equilibrium (MPE) of a game...
Persistent link: https://www.econbiz.de/10013212257
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Third-Degree Price Discrimination in Oligopoly When Markets are Covered
Dertwinkel-Kalt, Markus; Wey, Christian - 2021
We analyze oligopolistic third-degree price discrimination relative to uniform pricing when markets are always covered. Pricing equilibria are critically determined by supply-side features such as the number of firms and their marginal cost differences. It follows that each firm’s Lerner index...
Persistent link: https://www.econbiz.de/10013314756
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Integrated Versus Segmented Markets : Implications for Export Pricing and Welfare
Becker, Raphael; Nigai, Sergey; Seidel, Tobias - 2021
This paper challenges the common assumption of market segmentation in international trade. To analyze export entry and pricing decisions of firms in integrated vs. segmented markets, we develop a novel tractable approach based on stochastic export costs that allows us to compare firm-level and...
Persistent link: https://www.econbiz.de/10013315233
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Welfare-Enhancing Taxation and Price Discrimination
D'Annunzio, Anna; Russo, Antonio - 2022
We analyze the effects of commodity taxation in markets where suppliers implement second-degree price discrimination schemes, such as offering different package sizes and quality-differentiated versions of the same product. In these markets, suppliers distort the quantity (or quality) intended...
Persistent link: https://www.econbiz.de/10014243163
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History-Based Price Discrimination with Imperfect Information Accuracy and Asymmetric Market Shares
Colombo, Stefano; Graziano, Clara; Pignataro, Aldo - 2021
The paper considers a duopoly model in which firms inherited asymmetric market shares and history-based price discrimination is viable. However, firms can identify only a share of their own consumers depending to the degree of information accuracy. We derive the pricing strategies and we analyze...
Persistent link: https://www.econbiz.de/10013229698
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A Theory of Price Adjustment under Loss Aversion
Ahrens, Steffen; Pirschel, Inske; Snower, Dennis J. - 2014
We present a new partial equilibrium theory of price adjustment, based on consumer loss aversion. In line with prospect … theory, the consumers' perceived utility losses from price increases are weighted more heavily than the perceived utility … an otherwise standard dynamic neoclassical model of monopolistic competition. The resulting theory of price adjustment is …
Persistent link: https://www.econbiz.de/10010398564
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Poverty and welfare measurement on the basis of prospect theory
Jäntti, Markus; Kanbur, Ravi; Nyyssölä, Milla; … - 2013
-dependence, loss aversion and diminishing sensitivity - aspects emphasized in Prospect Theory - to social welfare measurement. We …
Persistent link: https://www.econbiz.de/10010291490