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Challenging the incumbent: entry in markets with captive consumers and taste heterogeneity

Oertel, Christian; Schmutzler, Armin - 2021

We analyze entry of a firm with a new and differentiated product into a market with two properties: An existing … incumbent has a captive consumer base, and all consumers have heterogeneous tastes. The interaction of the share of captive … consumers with the degree of taste heterogeneity leads to non-monotone effects of both parameters on entry. In particular, a …

Persistent link: https://www.econbiz.de/10012520198

Quality predictability and the welfare benefits from new products : evidence from the digitization of recorded music

Aguiar, Luis; Waldfogel, Joel - 2015

using an explicit structural model of demand and entry with potentially unpredictable product quality. Based on plausible …

Persistent link: https://www.econbiz.de/10011979989

Consumer Surplus-enhancing Collusions, Patent Pools, and R&D

Chen, Linfeng - 2019

This study reveals two different rationales for consumer surplus-enhancing collusion. The first model considers two competitive firms in the final product market, each with one essential patent necessary for production. The equilibrium price under collusion is lower than the price under...

Persistent link: https://www.econbiz.de/10012894295

Consumer choice and local network effects in mobile telecommunications in Turkey

Karaçuka, Mehmet; Çatik, A. Nazif; Haucap, Justus - 2012

Turkish consumer survey data is used to analyze the main factors that affect consumers' choice of different mobile telecommunications networks. The analysis shows that consumers' choice is significantly affected by the choices of other consumers with whom the consumer is more likely to interact....

Persistent link: https://www.econbiz.de/10010310634

Attention competition

Hefti, Andreas M. - 2011

I present a game-theoretic model where economic competition and attention competition are interdependent. On the one hand the effort to attract consumer attention depends on the value of attention to the firm which depends on the grade of price competition among all perceived firms. On the other...

Persistent link: https://www.econbiz.de/10010316856

Consumer search and oligopolistic pricing : an empirical investigation

Janssen, Maarten C. W.; Moraga-González, José Luis; … - 2004

This paper presents an empirical examination of oligopoly pricing and consumer search. The theoretical model allows for sequential and non-sequential search and, using the theoretical restrictions firm and consumer behavior impose on the data, we study the empirical validity of the models. Two...

Persistent link: https://www.econbiz.de/10010261272

Do consumers buy less of a taxed good?

Kind, Hans Jarle; Köthenbürger, Marko; Schjelderup, … - 2005

This paper shows that consumers may buy more of a taxed good if it is sold by a two-sided platform firm. Two-sided platform industries serve distinct customer groups that are connected through interdependent demand, and include major businesses such as the media industry (newspapers/magazines...

Persistent link: https://www.econbiz.de/10010261397

Mobile Termination with Asymmetric Networks

Dewenter, Ralf; Haucap, Justus - 2003

This paper examines mobile termination fees and their regulation when networks are asymmetric in size. It is demonstrated that with consumer ignorance about the exact termination rates (a) a mobile network's termination rate is the higher the smaller the network's size (as measured through its...

Persistent link: https://www.econbiz.de/10010263389

Spurious complexity and common standards in markets for consumer goods

Gaudeul, Alexia; Sugden, Robert - 2009

It has been argued that cognitively constrained consumers respond sub-optimally to complex decision problems, and that firms can exploit these limitations by introducing spurious complexity into tariff structures, weakening price competition. We model a countervailing force. Restricting one's...

Persistent link: https://www.econbiz.de/10010271191

Hotelling competition with multi-purchasing: Time Magazine, Newsweek, or both?

Anderson, Simon P.; Foros, Øystein; Kind, Hans Jarle - 2010

Equilibrium prices behave quite differently if consumers single-purchase (buy either Time Magazine or Newsweek) or if some consumers multi-purchase (buy both). Prices are strategic complements under single-purchase, and increase with magazine quality. In a multi-purchase regime prices are...

Persistent link: https://www.econbiz.de/10010273874