We analyze the effect of competition on price dispersion in the airline industry and show that the outcome hinges on redefining the extent of a market. Using panel data from 1993 to 2013, an increase in competition has a positive effect on price dispersion in one-way markets but a negative...

We study bargained input prices where up and downstream firms can choose alternative vertical partners. We apply our model to bargained airport landing fees where a number of interesting policy questions have arisen. For example, what is the impact of joint ownership of airports? Does airline...

In many markets, homogenous goods and services are sold both by large global frms and small local frms. Surprisingly, the large frms charge, often substantially, higher prices. Examples include hotels, airlines, and coffee shops. This paper provides a parsimonious model that can account for...

In many markets, homogenous goods and services are sold both by large global frms and small local frms. Surprisingly, the large frms charge, often substantially, higher prices. Examples include hotels, airlines, and coffee shops. This paper provides a parsimonious model that can account for...

This paper investigates the competition between vertically differentiated platforms in two-sided markets. We assume the presence of two competing platforms producing either higher- or lower-quality devices for consumers. Each platform decides the price of its hardware device for consumers and...

We introduce a model of price competition with endogenous market transparency, where it is costly for consumers to get informed about the announced prices. We show that there is symmetric mixed strategy equilibrium with a monotonic relationship between the degree of transparency and intensity of...

This paper endogeneizes the level of market coverage in a vertically differentiated market where firms decide first their qualities and next their prices. We extend the few endogeneization results to a more realistic setup, with quality dependent unit production costs. We show that, depending on...

Previous literature has analyzed the quality-price decisions and the market structure that arises endogenously, in a setup where variable production costs depend on quality. This paper goes one step further by admitting the existence of "transportation" costs for consumers who buy from the firm...

Despite still being younger than a decade, the theory of multisided market has offered numerous valuable insights for the analysis of industries in which a supplier serves two distinct customer groups that are indirectly interrelated by externalities. Examples include payment systems, matching...

For the last 50 years, the United States has been the leading supplier of LCA to the world. Changes in the structure of the global LCA industry and its market may ultimately affect the U.S. industry’s continued dominance, as competition increases and aspiring producers seek to enter the...