Narrow search
Showing 1 - 10 of 17,689
Cover Image
Uncertain demand, consumer loss aversion, and flat-rate tariffs
Herweg, Fabian - 2010
The so called flat-rate bias is a well documented phenomenon caused by consumers’ desire to be insured against fluctuations in their billing amounts. This paper shows that expectation-based loss aversion provides a formal explanation for this bias. We solve for the optimal two-part tariff when...
Persistent link: https://www.econbiz.de/10003987825
Cover Image
Uncertain demand, consumer loss aversion, and flat-rate tariffs
Herweg, Fabian; Mierendorff, Konrad - 2011
The so called flat-rate bias is a well documented phenomenon caused by consumers; desire to be insured against fluctuations in their billing amounts. This paper shows that expectation-based loss aversion provides a formal explanation for this bias. We solve for the optimal two-part tariff when...
Persistent link: https://www.econbiz.de/10009236785
Cover Image
Uncertain demand, consumer loss aversion, and flat-rate tariffs
Herweg, Fabian; Mierendorff, Konrad - 2011
We consider a model of firm pricing and consumer choice, where consumers are loss averse and uncertain about their future demand. Possibly, consumers in our model prefer a flat rate to a measured tariff, even though this choice does not minimize their expected billing amount - a behavior in line...
Persistent link: https://www.econbiz.de/10009739169
Cover Image
Uncertain demand, consumer loss aversion, and flat-rate tariffs
Herweg, Fabian - 2010
The so called flat-rate bias is a well documented phenomenon caused by consumers' desire to be insured against fluctuations in their billing amounts. This paper shows that expectation-based loss aversion provides a formal explanation for this bias. We solve for the optimal two-part tariff when...
Persistent link: https://www.econbiz.de/10008822064
Cover Image
Uncertain Demand, Consumer Loss Aversion, and Flat-Rate Tariffs
Herweg, Fabian; Mierendorff, Konrad - 2011
We consider a model of firm pricing and consumer choice, where consumers are loss averse and uncertain about their future demand. Possibly, consumers in our model prefer a flat rate to a measured tariff, even though this choice does not minimize their expected billing amount - a behavior in line...
Persistent link: https://www.econbiz.de/10014184126
Cover Image
Strategic Quality Choice Under Uncertainty : A Real Options Approach
Pawlina, Grzegorz; Kort, Peter M. - 2015
This paper studies the effects of demand uncertainty and imperfect competition on market entry and product quality …
Persistent link: https://www.econbiz.de/10014119621
Cover Image
Equilibrium Price Dispersion Under Demand Uncertainty : The Roles of Costly Capacity and Market Structure
Dana, James D. - 2008
When capacity is costly and prices are set in advance, firms facing uncertain demand will sell output at multiple prices and limit the quantity available at each price. I show that the optimal price strategy of a monopolist and the unique pure-strategy Nash equilibria of oligopolists both...
Persistent link: https://www.econbiz.de/10014043543
Cover Image
Cost uncertainty in an oligopoly with endogenous entry
De Pinto, Marco; Goerke, Laszlo - 2021
Cournot oligopoly in which firms produce a homogeneous commodity and market entry is feasible. Marginal costs are unknown ex … induces additional entry in market equilibrium and also raises the socially optimal number of firms. Since the first change … dominates, the excessive entry distortion is aggravated. This prediction is robust to various extensions of the analytical set …
Persistent link: https://www.econbiz.de/10012620737
Cover Image
Derivatives and default risk
Scholz, Sebastian - 2010
Upstream producers that possess market power, sell forwards with a lengthy duration to regional electricity companies (REC). As part of the liberalization of the electricity market, RECs have been privatized and exposed to a possible bankruptcy threat if spot prices have fallen below their...
Persistent link: https://www.econbiz.de/10003951795
Cover Image
Entrepreneurial optimism and creative destruction
Persson, Lars; Seiler, Thomas - In: The North American journal of economics and finance : a … 62 (2022), pp. 1-20
Persistent link: https://www.econbiz.de/10013534192