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We introduce a model of oligopoly dynamic pricing where firms with limited capacity face a sales deadline. We establish … comprehensive pricing and bookings data for competing U.S. airlines, we estimate our model and find that dynamic pricing results in … results in single-firm settings due to the strategic role of competitor scarcity. Pricing heuristics commonly used by airlines …
Persistent link: https://www.econbiz.de/10013362001
We establish the Hurwicz-Uzawa integrability of the broad class of discrete-choice additive random-utility models of individual consumer behavior with perfect substitutes preferences and divisible goods. We derive the corresponding indirect uility function and then establish a representative...
Persistent link: https://www.econbiz.de/10013334349
Manufacturers of durable goods can encourage consumers facing transaction costs to upgrade by accepting used units as trade-ins. These "buyback schemes" increase demand for new units, but increase the supply of used units if trade-ins are resold. In this paper, I investigate the equilibrium...
Persistent link: https://www.econbiz.de/10013388853
constrained airlines or by airlines operating in countries with underdeveloped financial systems. We show that airlines in …
Persistent link: https://www.econbiz.de/10014337795
The growing discussions of impact investing and stakeholder capitalism have increased interest in measuring companies' social impact. We conceptualize corporate social impact as the welfare loss that would be caused by a firm's exit. To illustrate, we quantify the social impacts of 74 firms in...
Persistent link: https://www.econbiz.de/10014421228
literature to introduce an empirical framework for analyzing network competition among airlines. Airlines make market entry …-preference argument, and employs a state-of-the-art econometric method to conduct inference for entry cost parameters. Ignoring network … externality underestimates the benefits of operating an additional flight by 13.2%, and airlines would schedule 21.53% fewer one …
Persistent link: https://www.econbiz.de/10015056219
Firms have inefficiently low incentives to innovate when other firms benefit from their inventions and the innovating firm therefore does not capture the full surplus of its innovations. We show that common ownership of firms mitigates this impediment to corporate innovation. By contrast,...
Persistent link: https://www.econbiz.de/10014512046
This paper surveys the relevant existing literature that can help researchers and policy makers understand the drivers of competition in markets that constitute the provision of artificial intelligence products. The focus is on three broad markets: training data, input data, and AI predictions....
Persistent link: https://www.econbiz.de/10014512124
This article addresses developments in the literature on The Rise of Market Power. First, it summarizes research about the result of De Loecker 2020 that the sales-weighted average markup has increased in the United States. Second, it summarizes and evaluates a set of industry studies that...
Persistent link: https://www.econbiz.de/10014576656
This article explores subjects in optimal income taxation characterized by recent research interest, practical importance in light of concerns about inequality, potential for misunderstanding, and prospects for advancement. Throughout, the analysis highlights paths for further investigation....
Persistent link: https://www.econbiz.de/10013334417