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This paper develops a theory of oligopoly and markups in general equilibrium. Firms compete in a network of product …
Persistent link: https://www.econbiz.de/10013503368
Persistent link: https://www.econbiz.de/10003462255
becomes lessdistinctive; and or it introduces advertising.These are timely issues, given the extent to which public … broadcasters are increasingly criticised forseeking popularity, losing distinctiveness, and in many cases, introducing advertising … parallels to other sectors where services are also offered free at the point of access, butfinanced by advertising. The most …
Persistent link: https://www.econbiz.de/10011400384
A fundamental result in the theory of commodity taxation is that taxes increase consumer prices and reduce supply …, including add-on pricing, multiproduct retailing with price advertising, intertemporal models with switching costs and two …
Persistent link: https://www.econbiz.de/10013337551
In this paper, unlike the conventional wisdom, we demonstrate that the relationship between the size of the market and number of firms would be non-monotonic. While moderate rise in the size would force the local firms to exit and only the foreign firm rules, substantial rise in the size would...
Persistent link: https://www.econbiz.de/10013365373
Using data from 11 main manufacturing industries in 17 OECD countries, this paper empirically investigates the determinants of cross-country differences in the persistence of productivity differentials Specifically, we focus on the effects of product market structure and technology diffusion. It...
Persistent link: https://www.econbiz.de/10011399314
Persistent link: https://www.econbiz.de/10003674369
We develop a model of vertical innovation in which firms incur a market entry cost and choose a unique level of quality. Once established, firms compete for market shares, selling to consumers with heterogeneous tastes for quality. The equilibrium of the pricing game exists and is unique within...
Persistent link: https://www.econbiz.de/10011547909
-quality menus to segment the market. We show that, contrary to the Coase conjecture for the homogeneous durable good monopoly …
Persistent link: https://www.econbiz.de/10012628729
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/10012619439