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In this paper we study the endogenous determination of monopoly price. Our proposed game of endogenous monopoly …-price setting extends the literature on monopoly-price, monopoly rent-seeking contests and monopoly rent-seeking rent …-avoidance contests by (i) determining the monopoly price such that it maximizes a composite utility function that depends on two …
Persistent link: https://www.econbiz.de/10011408927
Partly motivated by the recent antitrust investigations concerning Google, we develop a leverage theory of tying in two-sided markets. We analyze incentives for a monopolist to tie its monopolized product with another product in a two-sided market. Tying provides a mechanism to circumvent the...
Persistent link: https://www.econbiz.de/10011536190
This paper highlights the potential for joint OECD (or non-OPEC) carbon taxes to reduce OPEC's monopoly rent and … the supplier's price of oil, thus decreasing non-OPEC countrie's oil demand, and transferring OPEC monopoly rent to non … taxes reduce global emissions, but the effect is small. -- carbon taxes ; OECD ; monopoly rent …
Persistent link: https://www.econbiz.de/10003872304
We analyze the incidence and welfare effects of unit sales taxes in experimental monopoly and Bertrand markets. We find … consumers, independent of whether buyers are automated or human players. In monopoly markets, a monopolist bears a large share … presence of human buyers constrains the pricing behavior of a monopolist. -- tax incidence ; monopoly ; Bertrand competition …
Persistent link: https://www.econbiz.de/10003923092
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This paper shows that a manufacturer may benefit from parallel trade. In addition to an intuitive condition about the effect of demand shocks, this occurs when competitive retailers must order inventories before they know the realization of demand and for products whose sale value drops at the...
Persistent link: https://www.econbiz.de/10003112697
We investigate the welfare effects of third-degree price discrimination by a two-sided platform that enables interaction between buyers and sellers. Sellers are heterogenous with respect to their per-interaction benefit, and, under price discrimination, the platform can condition its fee on...
Persistent link: https://www.econbiz.de/10014334054
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/10012390927