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With price matching policies, retailers offer consumers to match prices offered by cheaper competitors. This article investigates how price matching affects pricing decisions in dynamic markets with cycling prices. The model predicts price-matching retailers to post higher prices and to lead...
Persistent link: https://www.econbiz.de/10012903728
Price discrimination is often difficult to disentangle from price dispersion due to a lack of transaction level data capable of tracking sales from individual companies to quantifiably heterogeneous groups of consumers. This paper uses coal mine-mouth prices and transportation prices paid by...
Persistent link: https://www.econbiz.de/10013057953
Edgeworth cycles represent the leading concept to explain observed pricing patterns on retail gasoline markets and have been subject to numerous empirical investigations on an interday level. In this paper, I present unique evidence of the presence, causes, and price effects of intraday...
Persistent link: https://www.econbiz.de/10011655625
Persistent link: https://www.econbiz.de/10010243189
benchmark countries. We then examine the market structure based on the concentration, firms' size, and entry and exit dynamics … concentration indexes for 4-digit manufacturing sectors. We find both significant markups and significant concentration across most … sectors. We compare computed markups and concentration with early estimates in South Africa and with other international …
Persistent link: https://www.econbiz.de/10011458072
Persistent link: https://www.econbiz.de/10012214814
This paper develops a theory of oligopoly and markups in general equilibrium. Firms compete in a network of product market rivalries that emerges endogenously out of the characteristics of the products and services they supply. My model embeds a novel, highly tractable and scalable demand system...
Persistent link: https://www.econbiz.de/10013503368
We consider a software vendor first selling a monopoly platform and then an application running on this platform. He may face competition by an entrant in the applications market. The platform monopolist can benefit from competition for three reasons. First, his profits from the platform...
Persistent link: https://www.econbiz.de/10011345756
The use of traditional industry-level profitability indicators for assessing the state of competition is problematic for two reasons. First, short-term variation reflects business cycles more than it does the impact of competition policy. Second, rough industry-level indicators hide different...
Persistent link: https://www.econbiz.de/10003763020
We analyze the strategic behavior of firms when demand is determined by a rule of thumb behavior of consumers. We assume consumer dynamics where individual consumers follow simple behavioral decision rules governed by imitation and habit as suggested in consumer research. On this basis, we...
Persistent link: https://www.econbiz.de/10003850650