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We analyze oligopolistic third-degree price discrimination relative to uniform pricing, when markets are always covered. Pricing equilibria are critically determined by supply-side features such as the number of firms and their marginal cost differences. It follows that each firm's Lerner index...
Persistent link: https://www.econbiz.de/10012208315
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
We present a model to explain why a manufacturer may impose a minimum resale price (min RPM) in a successive monopoly … substitute good and/or the effort the retailer exerts for service provision or advertising. Our explanation for a min RPM is …
Persistent link: https://www.econbiz.de/10013539548
We review the Chicago school's single monopoly profit theory whereby an upstream monopolist cannot increase its profits …
Persistent link: https://www.econbiz.de/10012704705
We study the incentives of firms that hold partial vertical ownership to foreclose rivals. Compared to a full vertical merger, with partial ownership, a firm may obtain only part of the target's profit but may nevertheless be able to influence the target's strategy significantly. The target may...
Persistent link: https://www.econbiz.de/10013382329
We analyze the impact of product bundling in experimental markets. One firm has monopoly power in a first market but …
Persistent link: https://www.econbiz.de/10010204789
We analyze firms' ability to sustain collusion in a setting in which horizontally differentiated firms can price-discriminate based on private information regarding consumers' preferences. In particular, firms receive private signals which can be noisy (e.g., big data predictions). We find that...
Persistent link: https://www.econbiz.de/10011892956
We study firms' advertising strategies in an oligopolistic market in which both non-comparative and comparative … advertising are present. We show that in equilibrium firms mix over the two types of advertising, with the intensity of … comparative advertising exceeding that of non-comparative advertising; moreover, that the intensity of comparative increases …
Persistent link: https://www.econbiz.de/10011552293
We develop a duopoly model with advertising supported platforms and analyze incentives of a superior firm to license … network effects arising fromthe aversion of users to advertising. We establish a relationship between licensing incentives and … the advertising intensity, benefits advertisers and harms users. Our model provides a rationale for technology …
Persistent link: https://www.econbiz.de/10009160924
model capturing the basic trade-off between the degree of privacy intrusion and the informativeness of advertising. We …
Persistent link: https://www.econbiz.de/10011969027