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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 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

Algorithmic price recommendations and collusion : experimental evidence

Hunold, Matthias; Werner, Tobias - 2023

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

Pricing behavior in partial cartels

Odenkirchen, Johannes - 2018

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

Market transparency and consumer search - evidence from the German retail gasoline market

Martin, Simon - 2020

We study a novel trade-off in market transparency regulation by estimating a structural model of the German retail gasoline market. Transparent environments enable easy price comparisons and match findings. Restricting transparency such that only the cheapest offers are shown induces firms to...

Persistent link: https://www.econbiz.de/10012268956

Homing choice and platform pricing strategy

Shekhar, Shiva - 2017

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

Characteristics, causes, and price effects : empirical evidence of intraday Edgeworth cycles

Siekmann, Manuel - 2017

Edgeworth cycles represent the leading concept to explain observed pricing patterns on retail gasoline markets and have been subject to numerous empirical investigations on an interday level. In this paper, I present unique evidence of the presence, causes, and price effects of intraday...

Persistent link: https://www.econbiz.de/10011655625

Competition, collusion and spatial sales patterns : theory and evidence

Hunold, Matthias; Hüschelrath, Kai; Laitenberger, Ulrich; … - 2018

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

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/10010246774

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/10010204781

Consumer flexibility, data quality and location choice

Baye, Irina; Hasnas, Irina - 2014

We analyze firms' location choices in a Hotelling model with two-dimensional consumer heterogeneity, along addresses and transport cost parameters (flexibility). Firms can price discriminate based on perfect data on consumer addresses and (possibly) imperfect data on consumer flexibility. We...

Persistent link: https://www.econbiz.de/10010338109