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incumbent manufacturer transfer profits to retailers. If entry is accommodated, upstream competition leads to fierce down …- stream competition and the breakdown of RPM. Hence, via RPM, retailers internalize the effect of accommodating entry on the … effect of a retailer cartel. We also consider the effect of imperfect competition. Empirical and policy implications are …
Persistent link: https://www.econbiz.de/10013135407
restraints, thereby, soften retail competition—an impact also generated by resale price maintenance (RPM). However, by …
Persistent link: https://www.econbiz.de/10012980147
This paper examines vertical arrangements in electricity markets. Vertically integrated wholesalers, or those with long-term contracts, have less incentive to raise wholesale prices when retail prices are determined beforehand. For three restructured markets, we simulate prices that define...
Persistent link: https://www.econbiz.de/10012775797
This papers analyzes dispersion in the prices that an airline charges to different customers on the same route. Such variation in airlines fares is substantial: the expected absolute difference in fares between two of an airline's passengers on a route averages thirty-six percent of the...
Persistent link: https://www.econbiz.de/10013229357
Conditional pricing practices allow the terms of sale between a producer and a downstream distributor to vary based on the ability of the downstream firm to meet a set of conditions put forward by the producer. The conditions may require a downstream firm to accept minimum quantities or multiple...
Persistent link: https://www.econbiz.de/10012989724
wide variation in consumer demographics and competition. Demand estimates reveal substantial within-chain variation in …
Persistent link: https://www.econbiz.de/10012900713
In this paper, we argue that differences in the cost structure across sectors play an important role in the decision of firms to adjust their prices. We develop a menu-cost model of pricing in which retail firms intermediate trade between producers and consumers. An important facet of our...
Persistent link: https://www.econbiz.de/10012985202
This paper examines the impact of e-commerce on pricing behavior and welfare. Using Japanese data, we find that the entry of e-commerce firms significantly raised the rate of intercity price convergence for goods sold intensively online, but not for other goods. E-commerce also lowered relative...
Persistent link: https://www.econbiz.de/10013224963
This paper tests for price patterns in retail gasoline markets consistent with those predicted by models of implicit collusion among firms. Recent supergame models show that the highest supportable collusive price is a function of today's profit relative to expected future profit: collusive...
Persistent link: https://www.econbiz.de/10013234346
We introduce a new data set on over 230,000 monthly prices for 10 goods in 50 Canadian cities over the 40 year period from 1910 to 1950. This coupled with previously published price information from the late twentieth century allows us to present one of the first comprehensive views of nominal...
Persistent link: https://www.econbiz.de/10013142082