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data, I then show that this type of demand heterogeneity is empirically relevant in a consumer health plan setting. Younger … and older consumers and men and women reveal strikingly different demand for health insurance, conditional on their …
Persistent link: https://www.econbiz.de/10012456237
The adoption of artificial intelligence (AI) prediction of demand by a monopolist firm is examined. It is shown that …, in the absence of AI prediction, firms face complex trade-offs in setting price and quantity ahead of demand that impact …
Persistent link: https://www.econbiz.de/10013191089
Sellers of new products are faced with having to guess demand conditions to set price appropriately. But sellers are …
Persistent link: https://www.econbiz.de/10012477642
Zeitverwendungserhebung, 2012-13, have sufficient observations to allow examining the theory of household production in much more detail than …
Persistent link: https://www.econbiz.de/10012480959
Carbon control policies in OECD countries commonly differentiate emission prices in favor of energy-intensive industries. While leakage provides a efficiency argument for differential emission pricing, the latter may be a disguised beggar-thy-neighbor policy to exploit terms of trade. Using an...
Persistent link: https://www.econbiz.de/10012462752
scarcity based pricing and predicts that variation in ticket prices is driven by differences between high demand and low demand …. We find only mixed support for the scarcity pricing theories. Flights during high demand periods have slightly higher … fares but exhibit no more fare dispersion than flights where demand is low. Moreover, the fraction of discounted advance …
Persistent link: https://www.econbiz.de/10012463094
We estimate a dynamic profit-maximization model of a fish wholesaler who can observe consumer characteristics, set individual prices, and thus engage in third-degree price discrimination. Simulated prices and quantities from the model exhibit the key features observed in a set of high quality...
Persistent link: https://www.econbiz.de/10012463630
In this paper we present and solve a three-stage game of entry, location, and pricing in a spatial price discrimination framework with arbitrarily many heterogeneous firms. We provide a unique characterization of all equilibria without imposing restrictions on the distribution of marginal costs
Persistent link: https://www.econbiz.de/10012463671
This paper examines how to evaluate consumer welfare when consumers face nonlinear prices. This problem arises in many settings, such as devising optimal pricing strategies for firms, assessing how price discrimination affects consumers, and evaluating the efficiency costs of many transfer...
Persistent link: https://www.econbiz.de/10012466295
This paper examines a competitive model of add-on pricing, the practice of advertising low prices for one good in hopes of selling additional products (or a higher quality product) to consumers at a high price at the point of sale. The main conclusion is that add-on pricing softens price...
Persistent link: https://www.econbiz.de/10012468977