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A Model of Vertical Oligopolistic Competition
Reisinger, Markus; Schnitzer, Monika - 2008
This paper develops a model of successive oligopolies with endogenous market entry, allowing for varying degrees of product differentiation and entry costs in both markets. Our analysis shows that the downstream conditions dominate the overall profitability of the two-tier structure while the...
Persistent link: https://www.econbiz.de/10010427530
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Trade Liberalization and Welfare Inequality: a Demand-Based Approach
Tarasov, Alexander - 2010
There is strong evidence that different income groups consume different bundles of goods. This evidence suggests that trade liberalization can affect welfare inequality within a country via changes in the relative prices of goods consumed by different income groups (the price effect). In this...
Persistent link: https://www.econbiz.de/10010427561
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Advertising in the U.S. Personal Computer Industry
Goeree, Michelle S. - 2004
Traditional models of consumer choice assume consumers are aware of all products for sale. This assumption is questionable, especially when applied to markets characterized by a high degree of change, such as the personal computer (PC) industry. I present an empirical discrete-choice model of...
Persistent link: https://www.econbiz.de/10010263301
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Price and Income Elasticities of Residential Water Demand: Why Empirical Estimates differ
Dalhuisen, Jasper M.; Florax, Raymond J.G.M.; de Groot, … - 2001
explanatory factors used in themeta-analysis includes variables derived from microeconomic choice theory and moderator variables …
Persistent link: https://www.econbiz.de/10010324973
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R&D and price elasticity of demand
Lucke, Dorothea; Schröder, Philipp J. H.; Schumacher, … - 2004
This note explores the relationship between the price elasticity of demand and the R&D intensity of the product. We introduce the concept of R&D intensity into a standard Dixit-Stiglitz/Krugman-type setting. R&D activity is treated as a fixed cost of production. Within this framework, sectors...
Persistent link: https://www.econbiz.de/10010276554
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Product variety, price elasticity of demand and fixed cost in spatial models
Gu, Yiquan; Wenzel, Tobias - 2009
This paper explores the implications of price-dependent demand in spatial models of product differentiation. We introduce consumers with a quasi-linear utility function in the framework of the Salop (1979) model. We show that the so-called excess entry theorem relies critically on the assumption...
Persistent link: https://www.econbiz.de/10010299762
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Product Variety, Price Elasticity of Demand and Fixed Cost in Spatial Models
Gu, Yiquan; Wenzel, Tobias - 2009
This paper explores the implications of price-dependent demand in spatial models of product differentiation. We introduce consumers with a quasi-linear utility function in the framework of the Salop (1979) model. We show that the so-called excess entry theorem relies critically on the assumption...
Persistent link: https://www.econbiz.de/10010264758
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International Coordination of Quality Standards and Vertical Product Differentiation
Lutz, Stefan - 2003
I study the influence of minimum quality standards in a partial-equilibrium model of vertical product differentiation and trade in which duopolistic firms face quality-dependent costs and compete in quality and price in two segmented markets. Three alternative standard setting arrangements are...
Persistent link: https://www.econbiz.de/10010297292
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Mutual Recognition of National Minimum Quality Standards may Support International Convergence
Lutz, Stefan - 2003
In a model of vertical product differentiation, duopolistic firms face qualitydependent costs and compete in quality and price in two segmented markets. Minimum quality standards, set according to the principle of Mutual Recognition, can be used to increase welfare. The results of the one-shot...
Persistent link: https://www.econbiz.de/10010298134
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Electronic coordination in oligopolistic markets: Impact on transport costs and product differentiation
Bandulet, Martin; Morasch, Karl - 2002
Produktdifferenzierung eigentlich erhöhen. Wir analysieren die Interaktion der Investitionsentscheidungen in transportkostensenkende … elektronische Koordination und in verstärkte Produktdifferenzierung in einem Duopol mit räumlich getrennten Märkten. Wir zeigen … Parameterbereiche existieren in denen die Unternehmen nach einer exogenen Senkung der Transportkosten die Produktdifferenzierung …
Persistent link: https://www.econbiz.de/10010300398