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Why do platforms charge proportional fees? Commitment and seller participation

Muthers, Johannes; Wismer, Sebastian - 2023

This paper deals with trade platforms whose operators not only allow third party sellers to offer their products to consumers, but also offer products themselves. In this context, the platform operator faces a hold-up problem if he uses classical twopart tariffs only as potential competition...

Persistent link: https://www.econbiz.de/10014374544

Opportunism problems of colluding manufacturers

Grieselmann, Jana; Hunold, Matthias; Muthers, Johannes; … - 2021

In a market with two exclusive manufacturer-retailer pairs, we show that colluding manufacturers may not be able to attain supra-competitive profits when contracts with retailers are secret. The stability of manufacturer collusion depends on the retailers' beliefs. We consider various dynamic...

Persistent link: https://www.econbiz.de/10012800473

Manufacturer carterls and resale price maintenance

Hunold, Matthias; Muthers, Johannes - 2021

In a model with manufacturer and retailer competition, we show that RPM facilitates manufacturer cartels when retailers have an outside option to selling the manufacturer's product. Because retailers have an effective outside option, the manufacturer can only ensure contract acceptance by...

Persistent link: https://www.econbiz.de/10012662688

If you think 9-ending prices are low, think again

Snir, Avichai; Levy, Daniel C. - 2019

9-ending prices are a dominant feature of many retail settings, which according to the existing literature, is because consumers perceive them as being relatively low. Are 9-ending prices really lower than comparable non 9-ending prices? Surprisingly, the empirical evidence on this question is...

Persistent link: https://www.econbiz.de/10012057431

Pricing better

Ray, Sourav; Wang, Li; Levy, Daniel; Bergen, Mark - 2019

Electronic shelf label (ESL) is an emerging price display technology around the world. While these new technologies require non-trivial investments by the retailer, they also promise significant operational efficiencies in the form of savings in material, labor and managerial costs. The presumed...

Persistent link: https://www.econbiz.de/10012387264

When Little Things Mean a Lot: On the Inefficiency of Item Pricing Laws

Bergen, Mark; Levy, Daniel; Ray, Sourav; Rubin, Paul H.; … - 2004

We study item-pricing laws (which require that each item in a store be individually marked with a price sticker) and examine and quantify their costs and benefits. On the cost side, we argue that item-pricing laws increase the retailers’ costs, forcing them to raise prices. We test this...

Persistent link: https://www.econbiz.de/10013204745

More on middlemen: Equilibrium entry and efficiency in intermediated markets

Nosal, Ed; Wong, Yuet-Yee; Wright, Randall - 2014

This paper generalizes Rubinstein and Wolinsky's model of middlemen (intermediation) by incorporating production and … and dynamics. In the benchmark model, equilibrium exists uniquely, and involves production and intermediation for some … parameters but not others. Sometimes intermediation is essential: the market operates iff middlemen are active. If bargaining …

Persistent link: https://www.econbiz.de/10011460668

Intermediation in markets for goods and markets for assets

Nosal, Ed; Wong, Yuet-Yee; Wright, Randall D. - 2019

analyses in various ways, we ask when intermediation emerges and study its efficiency. In one version of the framework, meant … view that intermediation in financial markets is more prone to instability than in goods markets. …

Persistent link: https://www.econbiz.de/10012030287

Fragility of secured credit chains

Gottardi, Piero; Maurin, Vincent; Monnet, Cyril - 2023

We present a model of secured credit chains in which assets generated from intermediation activity and pledged as … borrower, forming a credit chain. Intermediation profits can thus act as collateral for the loan to fund the dealer's own … fragility in the chain. The arrival of news about the value of the revenue of the intermediation activity further increases …

Persistent link: https://www.econbiz.de/10014374565

Exclusive intermediation

Fainmesser, Itay P. - 2014

In this paper, we argue that an important function fulfilled by intermediaries is to facilitate trust by enabling social pressure towards the enforcement of informal agreements. To that end, we develop a new model that uses network theory to show that intermediaries who have exclusivity over a...

Persistent link: https://www.econbiz.de/10010420277