Showing 1 - 10 of 34
In this note we analyze the sustainability of collusion in a game of repeated interaction where firms can price discriminate among consumers based on two types of customer data. This work is related to Liu and Serfes (2007) and Sapi and Suleymanova (2013). Following Sapi and Suleymanova we...
Persistent link: https://www.econbiz.de/10010343547
communication. Using a repeated, asymmetric capacity constraint price game, we show that, in line with theory, a partial cartel is … sufficient to increase market prices for all firms. Moreover, we find that prices of cartel insiders and outsiders are not … necessarily on the same level what contradicts common theoretical predictions. This is because communication allows cartel members …
Persistent link: https://www.econbiz.de/10011897162
This paper investigates the collusive and competitive effects of algorithmic price recommendations on market outcomes. These recommendations are often non-binding and common in many markets, especially on online platforms. We develop a theoretical framework and derive two algorithms that...
Persistent link: https://www.econbiz.de/10014442786
We analyze Bertrand duopoly competition in markets with network effects and consumer switching costs. Depending on the ratio of switching costs to network effects, our model generates four different market patterns: monopolization and market sharing which can be either monotone or alternating. A...
Persistent link: https://www.econbiz.de/10009236846
We develop a model for two-sided markets with consumers and producers, who interact through a platform. Typical settings for the model are the market for smartphones with phone users, app producers, and smartphone operating systems; or the video game market with game players, video game...
Persistent link: https://www.econbiz.de/10010426537
We compare a discriminatory pricing regime with a non-discriminatory regime in a competitive bottleneck model where content providers endogenously sort into single or multi-homers. We find that consumer prices rise when the share of single-homers increases in the non-discriminatory case, while...
Persistent link: https://www.econbiz.de/10011630878
This paper investigates the effects of changes in retail market concentration when input prices are negotiated. Results are derived from a model of bilateral Nash-bargaining between upstream and downstream firms which allows for general forms of demand and retail competition. Whether...
Persistent link: https://www.econbiz.de/10011654786
This article examines the price effects of gasoline stations following a retail merger in 2022. Using detailed station-level price data from 2020 to 2024, the analysis shows that fuel prices increase at both merging stations and their competitors, but with regional differences. These regional...
Persistent link: https://www.econbiz.de/10015337416
Germany, we study a cartel breakdown to identify the effect of competition on transport distances. Our econometric analyses …
Persistent link: https://www.econbiz.de/10011906924
Hospital markets are often characterised by price regulation and the existence of different ownership types. Using a Hotelling framework, this paper analyses the effect of heterogeneous objectives of the hospitals on quality differentiation, profits, and overall welfare in a price regulated...
Persistent link: https://www.econbiz.de/10008667618