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A note on consumer flexibility, data quality and collusion
Hasnas, Irina - 2014
In this note we analyze the sustainability of collusion in a game of repeated interaction where firms can price … improvement in data quality it is more difficult to sustain collusion. …
Persistent link: https://www.econbiz.de/10010343071
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Injunctions against false advertising
Baumann, Florian; Rasch, Alexander - 2019
Rules of consumer protection or fair competition can be publicly or privately enforced. We consider the possibility of false advertising by a firm in duopolistic competition where consumers can be distinguished according to whether or not they form rational beliefs about the trustworthiness of...
Persistent link: https://www.econbiz.de/10012197949
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Transparency, price-dependent demand and product variety
Gu, Yiquan; Wenzel, Tobias - 2010
This paper revisits the relationship between transparency on the consumer side and product variety as analyzed in Schultz (2009). We identify two welfare effects of transparency. More transparency decreases price-cost margins which is beneficial forwelfare. On the other hand, more transparency...
Persistent link: https://www.econbiz.de/10010302578
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Transparency, entry, and productivity
Gu, Yiquan; Wenzel, Tobias - 2011
This paper studies the relationship between transparency on the consumer side and productivity of firms. We show that more transparent markets are characterized by higher average productivity as firms with low productivity abstain from entering these markets.
Persistent link: https://www.econbiz.de/10010307560
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Consumer flexibility, data quality and targeted pricing
Sapi, Geza; Suleymanova, Irina - 2013
We investigate how firms' incentives to acquire customer data for targeted offers depend on its quality. A two-dimensional Hotelling model is proposed where consumers are heterogeneous both with respect to their locations and transportation cost parameters (flexibility). Firms have perfect data...
Persistent link: https://www.econbiz.de/10010327200
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Targeted pricing, consumer myopia and investment in customer-tracking technology
Baye, Irina; Sapi, Geza - 2014
We analyze how consumer myopia influences investment incentives into a technology that enables firms to track consumers' purchases and make targeted offers based on their preferences. In a two-period Hotelling setup firms may invest in customer-tracking technology. If a firm acquires the...
Persistent link: https://www.econbiz.de/10010332811
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Customer recognition and mobile geo-targeting
Baye, Irina; Reiz, Tim; Sapi, Geza - 2018
We focus on four important features of mobile targeting. First, consumers' real-time locations are known to sellers. Second, location is not the only factor determining how responsive consumers are to discounts. Other factors such as age, income and occupation play a role, which are imperfectly...
Persistent link: https://www.econbiz.de/10011812263
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Targeted pricing and customer data sharing among rivals
Jentzsch, Nicola; Sapi, Geza; Suleymanova, Irina - 2012
It is increasingly observable that competitors in different industries share customer data, which can be used for targeted pricing. We propose a modified Hotelling model with two-dimensional consumer heterogeneity to analyze the incentives for such sharing and its ensuing welfare effects. We...
Persistent link: https://www.econbiz.de/10010309289
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Entry deterrence through cooperative R&D over-investment
Christin, Clémence - 2011
In this paper, we highlight new conditions under which R&D agreements may have anti-competitive effects. We focus on cases where two firms compete with each other and with a competitive fringe. R&D activities need a specific input available to all firms on a common market, the price of which...
Persistent link: https://www.econbiz.de/10010307559
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Full versus partial collusion among brands and private label producers
Hasnas, Irina; Wey, Christian - 2015
. Full collusion is easier to sustain than partial collusion from the brands.perspective when horizontal differentiation is … large and vertical differentiation is small. The private label firm is better off under full collusion than under partial … collusion if goods are sufficiently homogenous (horizontal and/or vertical). Partial collusion could be preferred by the private …
Persistent link: https://www.econbiz.de/10011291846