Showing 1 - 10 of 93
This paper analyzes a market in which two horizontally differentiated firms compete by setting menus of two-part tariffs, and in which some consumers are not informed about the linear per-unit price component. We consider two regulatory interventions that limit firms’ ability to price...
Persistent link: https://www.econbiz.de/10013242096
This paper studies unshrouding decisions in a framework similar to Gabaix and Laibson (2006), but considers an alternative unshrouding mechanism where the impact of advertising add-on information depends on the number of unshrouding firms. We show that shrouding becomes less prevalent as the...
Persistent link: https://www.econbiz.de/10010223577
Persistent link: https://www.econbiz.de/10010379455
This paper evaluates the impact of reference pricing on prices and co-payments in the (German) market for off-patent pharmaceuticals. We present a theoretical model with price-sensitive and loyal consumers that shows that a decrease in the reference price affects the consumers' co-payments in a...
Persistent link: https://www.econbiz.de/10010489291
Persistent link: https://www.econbiz.de/10011436158
This paper analyzes a market in which two horizontally differentiated firms compete by setting menus of two-part tariffs, and in which some consumers are not informed about the linear per-unit price component. We consider two regulatory interventions that limit firms’ ability to price...
Persistent link: https://www.econbiz.de/10012385361
This paper studies shopping hour decisions by retail chains and independent competitors. We use a Salop-type model where retailers compete in prices and shopping hours. Our results depend significantly on efficiency differences between retail chain and independent retailer. If the efficiency...
Persistent link: https://www.econbiz.de/10008667635
This paper studies competition in prices and opening hours in a model with free entry. It is shown that under free competition a market failure arises: Entry is excessive and opening hours are under-provided. Restrictions on opening hours aggravate this failure. I analyze the impact of a...
Persistent link: https://www.econbiz.de/10012729189
This paper shows that the provision of consumer rights can decrease welfare when some consumers remain ignorant of these rights. We find that consumers uninformed about a mandated warranty demand excessively safe products in some circumstances. In other circumstances, uninformed consumers buy...
Persistent link: https://www.econbiz.de/10012793595
This paper shows that the provision of consumer rights can decrease welfare when some consumers remain ignorant of these rights. We find that consumers uninformed about a mandated warranty demand excessively safe products in some circumstances. In other circumstances, uninformed consumers buy...
Persistent link: https://www.econbiz.de/10013309765