Showing 1 - 10 of 109
We characterize mixed-strategy equilibria when capacity constrained suppliers can charge location-based prices to different customers. We establish an equilibrium with prices that weakly increase in the costs to supply a customer. Despite prices above costs and excess capacities, each supplier...
Persistent link: https://www.econbiz.de/10011916087
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
We characterize mixed-strategy equilibria when capacity constrained suppliers can charge location-based prices to different customers. We establish an equilibrium with prices that weakly increase in the costs of supplying a customer. Despite prices above costs and excess capacities, each...
Persistent link: https://www.econbiz.de/10012002080
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
We study the effect of entry on the price distribution in the German retail gasoline market. Exploiting more than 700 … entries over five years in an event study design, we find that entry causes a persistent first-order stochastic shift in the … to 12% of stations’ gross margins. Consumers with easy access to information on prices gain the most from entry. The …
Persistent link: https://www.econbiz.de/10014310490
This paper investigates the effects of mergers, entry, and exit in retail markets when input prices are negotiated …
Persistent link: https://www.econbiz.de/10011334106
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 paper studies the impact of entry of non-banks (termed Independent Service Operators, ISOs) into ATM markets. We … charges consumers directly. We find that due to the entry of an ISO the size of the total ATM network increases independent of … consumers directly. Consumers may not benefit from the entry of the ISO. If a regulator can control the interchange fee, entry …
Persistent link: https://www.econbiz.de/10009755721
This paper revisits the optimal entry decision in a differentiated product market where customer demand is price …-sensitive and depends on a per-unit transport cost. We show that too few firms may enter for high entry cost and high transport cost …
Persistent link: https://www.econbiz.de/10010423860
not "too" convex. As in the case of unit demand, the number of firms under free entry decreases in the fixed cost of entry … optimal level. Insufficient entry occurs when the fixed and transportation costs are high. -- Spatial Models ; Price …-Dependent Demand ; Horizontal Product Differentiation ; Demand Elasticity ; Excess Entry Theorem …
Persistent link: https://www.econbiz.de/10009485787