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Competition, collusion and spatial sales patterns : theory and evidence

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

This article studies competition in markets with transport costs and capacity constraints. We compare the outcomes of price competition and coordination in a theoretical model and find that when firms compete, they more often serve more distant customers who are closer to the competitor's plant....

Persistent link: https://www.econbiz.de/10011906924

Multi-product bargaining, bundling, and buyer power

Dertwinkel-Kalt, Markus; Wey, Christian - 2019

We re-consider the bilateral bargaining problem of a multi-product, manufacturer-retailer trading relationship. O'Brien and Shaffer (Rand JE 35:573-598, 2005) have shown that the unbundling of contracts leads to downward distorted production levels if seller power is strong, while otherwise the...

Persistent link: https://www.econbiz.de/10012139155

Human-algorithm interaction : algorithmic pricing in hybrid laboratory markets

Normann, Hans-Theo; Sternberg, Martin - 2022

significantly affect collusion, although humans do seem to perceive algorithms as more disruptive. …

Persistent link: https://www.econbiz.de/10013414764

Resale price maintenance in a successive monopoly model

Dertwinkel-Kalt, Markus; Wey, Christian - 2023

We present a model to explain why a manufacturer may impose a minimum resale price (min RPM) in a successive monopoly setting. Our argument relies on the retailer having non-contractible choice variables, which could represent the price of a substitute good and/or the effort the retailer exerts...

Persistent link: https://www.econbiz.de/10013539548

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

Combinable products, price discrimination, and collusion

Döpper, Hendrik; Rasch, Alexander - 2022

We analyze the effect of different pricing schemes on horizontally differentiated firms' ability to sustain collusion … that the additional price component of the two-part tariff makes it more difficult to sustain collusion. Additionally, the … pricing schedule that is most beneficial for customers in absence of collusion harms customers most in presence of (partial …

Persistent link: https://www.econbiz.de/10012799902

Pricing behavior in partial cartels

Odenkirchen, Johannes - 2018

We analyze the pricing behavior of firms when explicit partial cartels have formed in experimental markets through 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...

Persistent link: https://www.econbiz.de/10011897162

Merger remedies in oligopoly under a consumer welfare standard

Dertwinkel-Kalt, Markus; Wey, Christian - 2015

We analyze the welfare effects of structural remedies on merger activity in a Cournot oligopoly if the antitrust agency applies a consumer surplus standard. We derive conditions such that otherwise price-increasing mergers become externality-free by the use of remedial divestitures. In this...

Persistent link: https://www.econbiz.de/10010533038

Passive partial ownership, sneaky takeover, and merger control

Jovanovic, Dragan; Wey, Christian - 2013

We analyze horizontal mergers when the acquirer holds a passive partial ownership stake (PPO) in the target firm prior to the merger. We show that a PPO reduces the minimal synergy level necessary to make a merger beneficial for consumers. It follows that an antitrust authority ignoring existing...

Persistent link: https://www.econbiz.de/10009788178

Capacity constraints, price discrimination, inefficient competition and subcontracting

Hunold, Matthias; Muthers, Johannes - 2017

We characterize mixed-strategy equilibria in a setting with capacity constrained suppliers which can charge location based prices to different customers. The equilibrium prices weakly increase in the transport distance between supplier and customer, whereas the margins decrease. Despite prices...

Persistent link: https://www.econbiz.de/10011664185