Showing 1 - 10 of 3,746
This paper studies how selling constraints, which refer to the inability of firms to attend to all the buyers who want to inspect their products, affect the equilibrium price and social welfare. We show that the price that maximizes social welfare is greater than the marginal cost. This is...
Persistent link: https://www.econbiz.de/10014320135
In a recent paper, Alipranti et al. (2014, Price vs. quantity competition in a vertically related market, Economics … Letters, 124: 122-126) show that in a vertically related market Cournot competition yields higher social welfare compared to … Bertrand competition if the upstream firm subsidises the quantity setting downstream firm's production via negative wholesale …
Persistent link: https://www.econbiz.de/10011569602
This paper studies the welfare consequences of a vertical merger that raises rivals costs when downstream competition …, that this result extends to price competition with differentiated products. …
Persistent link: https://www.econbiz.de/10011410253
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/10012129753
Bertrand-Nash equilibria in a duopoly. Comparing equilibrium prices to the prices set by a multiproduct monopolist, we show … that competition drives prices up and reduces total surplus. …
Persistent link: https://www.econbiz.de/10002521692
The paper employs a standard model of dynamic price competition to study how international principles of value …-added taxation affect the stability of collusive agreements when producers in an international duopoly agree not to export into each …
Persistent link: https://www.econbiz.de/10009781559
applies more generally to duopoly pricing. -- magazine competition ; multi-purchase ; incremental pricing ; content … competition …
Persistent link: https://www.econbiz.de/10003977969
We consider the interaction between an incumbent firm and a potential entrant, and examine how this interaction is affected by demand fluctuations. Our model gives rise to procyclical entry, prices, and price-cost margins, although the average price in the market can be countercyclical if the...
Persistent link: https://www.econbiz.de/10010367376
We investigate the effect of a ban on third-degree price discrimination on the sustainability of collusion. We build a model with two firms that may be able to discriminate between two consumer groups. Two cases are analyzed: (i) Best-response symmetries so that profits in the static Nash...
Persistent link: https://www.econbiz.de/10011434582
competition between the TV channels, since they take into account the fact that a lower viewer price at one channel will harm …
Persistent link: https://www.econbiz.de/10003955216