This paper develops a new approach that combines firm margins, market-level industry data and a static demand model to construct sets containing unbiased estimates of long-run price elasticities for storable good industries. It obviates the need to solve the consumer's value function and can be...

We study the relationship between prices and market structure in geographically isolated markets that are exposed to large demand shocks. The temporal variation in market size allows us to overcome the classical endogeneity bias in standard concentration-performance regressions. We find evidence...

Firms in many industries may obtain superior knowledge of customer preferences, whereas customers often need costly efforts to learn their match values. In this pa-per, we examine the optimal pricing strategies for a firm with superior knowledge, when customers can reduce information asymmetry...

Recent evidence suggests the U.S. business environment is changing, with rising market concentration and markups. The most prominent and extensive evidence backs out firm-level markups from the first-order conditions for variable factors. The markup is identified as the ratio of the variable...

We quantify the welfare effects of zone pricing, or setting common prices across distinct markets, in retail oligopoly. Although monopolists can only increase profits by price discriminating, this need not be true when firms face competition. With novel data covering the retail home improvement...

We quantify the welfare effects of zone pricing, or setting common prices across distinct markets, in retail oligopoly. Although monopolists can only increase profits by price discriminating, this need not be true when firms face competition. With novel data covering the retail home improvement...

In der aktuellen Debatte zur Rekommunalisierung von Stromanbietern wird häufig das Argument der sicheren Versorgung zu niedrigen Preisen von Vertretern öffentlicher Eigentümer angeführt. Während die sichere Belieferung mit Strom im Rahmen der Grundversorgung gesetzlich vorgeschrieben ist,...

A shift from zonal pricing to smaller zones and nodal pricing improves efficiency and security of system operation. Resulting price changes do however also shift profits and surplus between and across generation and load. As individual actorscan lose, they might oppose any reform. We explore how...

Efficiency in the management of electricity transmission networks is essential for the success of the liberalized energy markets. The paper is dedicated to the short-run management problems of these natural monopolies. It analyses how to organize and price access to and use of the transport...

In this Perspective, I review arguments that broadband providers may be anticompetitively imposing usage-based pricing to protect their profits from “core” services (e.g., voice, video, texting) against the proliferation of “over the top” services and, as such, new price regulation of...