First, we analyze how regular days off from competition and a time-dependent price pattern affect firm performance. Second, we examine the effects on firms' profitability from consumers' changing search- and timing behavior. We use microdata from gasoline retailing in Norway. Since 2004, firms...

We present a model which explains the puzzling phenomenon of quantity premiums (vis-a-vis quantity discounts) when consumers opportunistically switch between large and small packages and when cost differences would logically favor the offering of quantity discounts. Our analysis shows that the...

This paper introduces cashless stores and cashless consumers into a model of interchange fees. Under this modification, the interchange fee set by the card organization exceeds the optimal level. Furthermore, the gap between this fee and the optimal fee increases with the fraction of consumers...

This article discuss the market conditions prevailing when the merger between Anheuser-Busch InBev and Grupo Modelo (ABI/Modelo) was authorized in 2013. I analyze the cointegration of beer prices in the U.S. and Mexican markets from 2002 to 2012. The cointegration model shows an asymmetric...

A buyer group is a subset of downstream firms that pool their demand for an upstream input to negotiate a better deal with suppliers. This paper develops a simple model that shows how a buyer group changes market behavior, focusing on the impact on downstream firms outside the buyer group. This...

Tying, bundling, minimum purchase requirements, loyalty discounts, exclusive dealing, and other purchase restraints can create stronger incentives for firms to invest in product quality. In our first example, the firm sells a durable experience good and a complementary non-durable good to a...

We provide a novel intuition for the observation that many brand manufacturers have restricted their retailers' ability to resell brand products online. Our approach builds on models of salience according to which price disparities across distribution channels guide a consumer's attention toward...

We provide an explanation for a frequently observed vertical restraint in ecommerce, namely that brand manufacturers partially or completely prohibit that retailers distribute their high-quality products over the internet. Our analysis is based on the assumption that a consumer's purchasing...

We provide a novel intuition for why manufacturers restrict their retailers' ability to resell brandproducts online. Our approach builds on models of limited attention according to which pricedisparities across distribution channels guide a consumer's attention toward prices and lower...

We provide a novel intuition for the observation that many brand manufacturers have restricted their retailers' ability to resell brand products online. Our approach builds on models of salience according to which price disparities across distribution channels guide a consumer’s attention...