How does an artist's death impact on the price of his or her works of art? We investigate this question in an infinite … behaviour of collectors and artists, we find that the art price remains at some well-defined "pseudo-competitive" level as long … as the artist is alive. Only when the artist unexpectedly dies, the price increases on impact. This so-called death effect …

overvalues a product attribute - quality or price - that stands out in a particular choice situation. In a highly competitive low-price … environment like on an online platform, consumers focus more on price rather than quality. Especially if the market power of local … (physical) retailers is low, price tends to be salient also in the local store, which is unfavorable for the high …

consumption goods are traded. We test different models and provide several insights into pricing and reactions to price … discrimination. First, we identify the extent to which sellers voluntarily and strategically avoid price discrimination. Second, we … that customers are not generally antagonized by price discrimination: while they are less likely to buy if they are charged …

Pay What You Want (PWYW) can be an attractive marketing strategy to price discriminate between fair-minded and selfish … monopolistic market, but it is less successful as a competitive strategy because it does not drive traditional posted-price sellers … out of the market. Instead, the existence of a posted-price competitor reduces buyers' payments and prevents the PWYW …

This paper models payment evasion as a source of profit by letting the firm choose the purchase price and the fine … imposed on detected payment evaders. For a given price and fine, the consumers purchase, evade payment, or choose the outside … option. We show that payment evasion leads to a form of second-degree price discrimination in which the purchase price …

led the merging parties to reposition their assortment and increase average category prices. While the low-variety and low-price …

find that prices have a negative impact on transitions in the sense that an increase in the brand price will reduce the … transition from generics to brand and likewise an increase in the generic price will reduce the transition from brand to generics …

We study price formation in the standard model of consumer search for differentiated products but allow for search cost … important but often neglected aspect of the price mechanism. Recognizing the role the equilibrium price plays in consumers …