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of moves in the duopoly market. Our data indicate support for the theory of product bundling: with bundling and … theory bundling should not make a difference here. In sum, bundling works as a commitment device that enables the transfer of …
Persistent link: https://www.econbiz.de/10010204789
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 analyze how consumer preferences for one-stop shopping a¤ect the (Nash) bargaining relationships between a retailer and its suppliers. One-stop shopping preferences create demand complementarities among otherwise independent products which lead to two opposing effects on upstream merger...
Persistent link: https://www.econbiz.de/10011715307
We study joint marketing arrangements by competing firms who engage in price discrimination between consumers who patronize only one firm (single purchasing) and those who purchase from both competitors (bundle purchasers). Two types of joint marketing are considered. Firms either commit to a...
Persistent link: https://www.econbiz.de/10010350971
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
We study zero-rating, a practice whereby an Internet service provider (ISP) that limits retail data consumption exempts certain content from that limit. This practice is particularly controversial when an ISP zero-rates its own vertically integrated content, because the data limit and ensuing...
Persistent link: https://www.econbiz.de/10012024564
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