This paper studies imperfect price competition between two intermediaries in an electronic business-to-business matching market with indirect network externalities. The intermediaries differ with regard to their ownership structure: an independent third party incumbent marketplace competes with...

Die Liberalisierung des Luftverkehrs in Europa (aber auch weltweit) hatte das Ziel, über eine Intensivierung des Wettbewerbs, Effizienzgewinne im System Luftverkehr zu realisieren. Ergebnis der Liberalisierung war es jedoch, dass sich lediglich auf wenigen Hauptstrecken Wettbewerb...

We analyze the role of consumer expectations in a Hotelling model of price competition when products exhibit network effects. Expectations can be strong (stubborn), weak (price-sensitive) or partially stubborn (a mix of weak and strong). As a rule, the price-sensitivity of demand declines when...

Der Beitrag sollte verdeutlichen, dass sich seit den Pioniermodellen mit unvollständiger Information mittlerweile eine recht heterogene Klasse von Ansätzen etabliert hat, die sich unter alternativen Grundannahmen mit der Frage auseinandersetzen, ob Unternehmen angesichts diverser...

This paper further develops the standard modelling of information exchange between firms in the presence of demand uncertainty which applies to firms in new industries and insecure regions or markets. We replace the normal distribution of the random variables, commonly used because of its...

In this paper three issues are pursued. First, a model of capacity constrained price competition is suggested. The basic feature of this model is that a pure strategy equilibrium exists for all price subgames. Second, this permits Cournot outcomes in heterogeneous markets to be interpreted as...

In a two-stage model insurance companies first decide upon risk classification and then compete in prices. I show that the observed heterogeneous behavior of similar firms is compatible with rational behavior. On the deregulated German insurance market individual application of classification...

In this paper we extend the model of vertical product differentiation to also consider information disparities about the extent of quality differences. Equilibrium prices turn out to depend not only on the share of informed consumers but also on uninformed consumers beliefs about quality...

Increasing environmental awareness may affect the pleasure of consuming a good for which an environmental friendly substitute is available. When deciding to buy differentiated products, a compromise is sometimes made between preferred characteristics of the good and its environmental properties....

We study a discrete time dynamic game of price competition with spatially differentiated products and price adjustment costs. We characterise the Markov perfect and the open-loop equilibrium of our game. We find that in the steady state Markov perfect equilibrium, given the presence of...