Showing 1 - 10 of 4,071
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 …
Persistent link: https://www.econbiz.de/10011717196
This paper develops a model of trade and CO2 emissions with heterogenous firms, where firms make abatement investments and thereby have an impact on their level of emissions. The model shows that investments in abatements are positively related to firm productivity and firm exports. Emission...
Persistent link: https://www.econbiz.de/10010358267
leads to higher average prices. We test the theory using detailed data for Brazilian exporters and find that the destination …
Persistent link: https://www.econbiz.de/10009764401
. Consistent with our theory, vertical differentiation affects exports via sunk costs and the extensive margin, whereas the effect …
Persistent link: https://www.econbiz.de/10011536262
This paper derives a new effect of trade liberalisation on the quality of the environment. We show that in the presence of heterogeneous firms the aggregate volume of emissions is influenced not only by the long-established scale effect, but also by a reallocation effect resulting from an...
Persistent link: https://www.econbiz.de/10009570712
price competition (but not on social welfare). …
Persistent link: https://www.econbiz.de/10011398110
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
would obtain under an equivalent import tariff, and we document patterns in Canadian export data and US producer price data …
Persistent link: https://www.econbiz.de/10012263368
We study the procompetitive effects of trade policies against a foreign oligopoly in a model of vertical product differentiation. We show that a uniform tariff policy like the Most Favored Nation (MFN) clause is always welfare superior to free trade because of a pure rent-extraction effect....
Persistent link: https://www.econbiz.de/10011400885
This paper investigates the positive international spillover effects of non-discriminatory product regulations, such as quality standards. We incorporate regulations into a multi-country general equilibrium framework with firm heterogeneity and variable markups. We model regulations as a...
Persistent link: https://www.econbiz.de/10015048984