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This chapter surveys recent theoretical developments in the intersection of price discrimination and imperfect competition, emphasizing how the introduction of competition fundamentally alters some well-established results derived from models of monopoly pricing
Persistent link: https://www.econbiz.de/10013058619
I study contests in which each player is ranked by a scoring rule based on both her performance and how close this performance is to a private target, set before the contest. Each player's decision problem is to choose her target when performance is subject to a random component. I analyse the...
Persistent link: https://www.econbiz.de/10012862676
In markets with asymmetric information, where equilibria are often inefficient, bargaining can help promote welfare. We design an experiment to examine the impact of competition and price transparency in such settings. Consistent with the theoretical predictions, we find that competition...
Persistent link: https://www.econbiz.de/10012854487
Persistent link: https://www.econbiz.de/10010335123
Most economic models are based on the self-interest hypothesis that assumes that all people are exclusively motivated by their material self-interest. In recent years experimental economists have gathered overwhelming evidence that systematically refutes the self-interest hypothesis and suggests...
Persistent link: https://www.econbiz.de/10005656392
No abstract.
Persistent link: https://www.econbiz.de/10010684460
This paper studies the competition between Web 2.0 communities in a game theoretic framework. We model three important features of these institutions: (i) firms' content is usually user-generated; (ii) consumers' content preferences are governed by local network effects, and (iii) consumers have...
Persistent link: https://www.econbiz.de/10014181464
This report suggests and justifies a simple approach to arms competitions, wherein arms competitions are viewed as disaggregated competition between pairs of weapons systems for executing mutually incompatible policy goals. This approach is derived from a decision theoretic model of armament...
Persistent link: https://www.econbiz.de/10014225321
We examine theoretically and experimentally how combining between-team and within-team incentives affects behavior in team tournaments. Theory predicts that free-riding is likely to occur when there are only between-team incentives, and offering within-team incentives may solve this problem....
Persistent link: https://www.econbiz.de/10012921253
Social comparison theories typically assume a comparable degree of competition between commensurate rivals on a mutually important dimension. In contrast, however, the following set of studies reveals that the degree of competition between such rivals depends on their proximity to a standard....
Persistent link: https://www.econbiz.de/10014027303