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Optimal control theory is employed to derive explicitly the optimal (profit maximizing) price of a durable new product …
Persistent link: https://www.econbiz.de/10014046439
network i pays to network j as a linear function of the marginal costs and the retail prices set by both networks. In the case … additional objectives such as consumer surplus, network coverage or investment: in particular, we show that the regulator can …
Persistent link: https://www.econbiz.de/10014048275
In this paper I set forth an antitrust remedy for the oligopolistic pricing problem. Oligopoly pricing resembles a repeated prisoners' dilemma game. Each firm has an incentive to moderately lower its price and thus increase its sales at its competitors' expense. However, each firm knows that its...
Persistent link: https://www.econbiz.de/10014049971
The paper develops a framework for Internet backbone competition. In the absence of direct payments between websites and consumers, the access charge allocates communication costs between websites and consumers and affects the volume of traffic. The paper analyzes the impact of the access charge...
Persistent link: https://www.econbiz.de/10014105697
This paper evaluates the effectiveness of several pricing rules intended to promote entry into a network industry … interconnected networks. In a symmetric equilibrium, the price of cross-network calls exceeds the price of internal calls. This … "calling circle discount" tends to "tip" the industry to a monopoly equilibrium as would a network externality. By equalizing …
Persistent link: https://www.econbiz.de/10014027369
Uniform spatial pricing is a pricing policy by which a firm delivers its product to any customer at a fixed price, independent of the customer's location. For example, it is the method often, but not always used by mail-order and internet firms. Less well-recognized is that uniform pricing is...
Persistent link: https://www.econbiz.de/10013127844
In this paper we study, as in Jeon-Menicucci (2009), competition between sellers when each of them sells a portfolio of distinct products to a buyer having limited slots. This paper considers sequential pricing and complements our main paper (Jeon- Menicucci, 2009) that considers simultaneous...
Persistent link: https://www.econbiz.de/10013155785
We consider a market consisting of two populations, termed rich and poor for convenience. If a product is priced such that it is very expensive for the poor, but affordable to the rich, then it becomes a status symbol for the poor and this makes it more desirable for the poor. At a lower price,...
Persistent link: https://www.econbiz.de/10013158791
This paper theoretically analyzes the role of reference prices on competition and welfare in a context of a circular city model with free entry and reference prices, in which paying market prices above a reference negatively affects the utility of consumers. Agents interact in a three-stage...
Persistent link: https://www.econbiz.de/10013175014
When the public provision of private goods is partial rather than universal, public supply may be supplemented by the entry of private firms in the market for the private good. The main purpose of this paper is to explore whether partial public provision helps or hinders aggregate access to the...
Persistent link: https://www.econbiz.de/10013320179