Showing 1 - 10 of 1,512
This paper applies the theory of memory for advertising, developed in the consumer behavior literature, to an industrial organization setting to provide insight into advertising strategies in imperfectly competitive markets. There are two firms and infinitely many identical consumers. The firms...
Persistent link: https://www.econbiz.de/10013143246
We propose a dynamic framework for durable-goods with consumers who have different valuations and an arbitrary number of firms which compete in quantities in each period. Consumers' ability to behave strategically about the timing of consumption differs in the three environments that we analyze....
Persistent link: https://www.econbiz.de/10014345066
Earlier work characterized pricing with switching costs as a dilemma between a short-term 'harvesting' incentive to increase prices versus a long-term 'investing' incentive to decrease prices. This paper shows that small switching costs may reduce firm profits and provide short-term incentives...
Persistent link: https://www.econbiz.de/10010250671
We analyze strategic relationships between buyers and sellers in markets with switching costs and dynamic uncertainty by investigating the scenario wherein a representative buyer trades with two foreign sellers located in the same foreign country. We show that, under exchange rate uncertainty,...
Persistent link: https://www.econbiz.de/10012776363
We consider a network market where firms can covertly extract additional revenues from consumers, which we refer to as “obfuscation”. We examine why even consumers who are aware of obfuscation (“sophisticates”) continue to stick to obfuscating networks. Depending on the relation between...
Persistent link: https://www.econbiz.de/10012933070
Motivated by the slow diffusion of generic drugs and the increase in prices of brand-name drugs after generic entry, I incorporate consumer learning and consumer heterogeneity into an empirical dynamic oligopoly model. In the model, firms choose prices to maximize their expected total discounted...
Persistent link: https://www.econbiz.de/10012755155
We consider dynamic repositioning when competing firms try to follow the evolution of consumer preferences, while taking into account the competitive interaction, both in terms of static market competition, and the dynamic effects of different firm positioning. We fully characterize the dynamic...
Persistent link: https://www.econbiz.de/10012822884
The common marketing practice of offering subscribers enticements to switch suppliers is explored. It is shown that this type of price discrimination is the natural mode of competition in subscription markets such as long distance telephony and banking and that it prevails even when the industry...
Persistent link: https://www.econbiz.de/10014044250
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
This paper identifies substantial flaws in how U.S. government agencies and courts assess the impact of proposed mergers by firms using broadband networks to reach consumers. Based on current market definitions, consumer impact assessments and economic doctrine, antitrust enforcement agencies...
Persistent link: https://www.econbiz.de/10014090155