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Mainstream economists are reluctant to integrate features of bounded rationality into their behavioural assumptions. However, particularly in the field of economic policy the scope for irrational behaviour is given, since voters lack incentives for rational reasoning concerning their voting...
Persistent link: https://www.econbiz.de/10013428315
We examine the relation between consumer search and equilibrium prices when collusion is endogenously determined. We develop a theoretical model and show that average price is a U-shaped function of the measure of searchers: prices are highest when there are no searchers (local monopoly power)...
Persistent link: https://www.econbiz.de/10012007152
We broaden and develop the classic captive-and-shopper model of sales. Firstly, we allow for asymmetric marginal costs as well as asymmetric captive audiences. These asymmetries jointly determine the identities of the two or more firms we find compete (via randomized sales) to serve shoppers. In...
Persistent link: https://www.econbiz.de/10014493905
Pay What You Want (PWYW) and Name Your Own Price (NYOP) are customer driven pricing mechanisms that give customers (some) pricing power. Both have been used in service industries with high fixed costs to price discriminate without setting a reference price. Their participatory and innovative...
Persistent link: https://www.econbiz.de/10011591510
the innovating firm invests in marketing, so that consumers become aware of the newly developed product. Firms first … theoretical model are that both the marketing of a product innovation and a firm's propensity to introduce an innovation decrease … a positive effect on product innovation and marketing effort. These findings are tested empirically using survey data …
Persistent link: https://www.econbiz.de/10013428414
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We study a conflict of interest faced by universal banks that conduct proprietary trading alongside their retail banking services. Our dataset contains the stock holdings of each and every German bank and of their corresponding retail clients. We investigate (i) whether banks deliberately push...
Persistent link: https://www.econbiz.de/10010202878
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