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This paper analyzes the role of patience in a repeated Bertrand duopoly where firms bargain over which collusive price and market share to implement. It is shown that the least patient firm's market share is not monotone in its own discount factor
Persistent link: https://www.econbiz.de/10014178725
We provide a framework for empirical analysis of negotiated-price markets. Using mortgage market data and a search and negotiation model, we characterize the welfare impact of search frictions and quantify the role of search costs and brand loyalty for market power. Search frictions reduce...
Persistent link: https://www.econbiz.de/10011809443
Multiemployer collective bargaining relationships between unions and employer associations easily devolve into … legalized cartels. Once unions establish themselves as the bargaining representative for employers’ employees, the employers … employer. It outlines how unions and (especially) associations work to thwart such an employer from bargaining directly with a …
Persistent link: https://www.econbiz.de/10014200477
from buying input from a new up-stream supplier. Incorporating Nash bargaining into the standard one …
Persistent link: https://www.econbiz.de/10011530227
two main features of pricing schemes in business-to-business relationships: nonlinear price schedules and bargaining over …
Persistent link: https://www.econbiz.de/10010288428
manufacturers determined via the "Nash-in-Nash" bargaining solution, the computation of the out-of-equilibrium retail prices … following a bargaining breakdown, the algorithm used to simulate counterfactuals in our bilateral oligopoly model, the … analytical derivatives of standard errors of the Nash bargaining weights …
Persistent link: https://www.econbiz.de/10014350156
bilateral bargains with retailers competing on a downstream market. We show that bargaining outcomes depend on three different … bargaining forces and can be interpreted in terms of “equilibrium of fear”. We estimate our framework using data on soft drink … purchases in France and find that retailers have a higher bargaining power than manufacturers. Using counterfactual simulations …
Persistent link: https://www.econbiz.de/10013324359
rates. Our full characterization of equilibrium behavior permits studying how patience shapes the bargaining outcome. We …
Persistent link: https://www.econbiz.de/10012438413
models reveals that firms and the union have a different preference ordering over labor market bargaining. These differences … help explain why the empirical evidence does not support any one model of union bargaining. We also examine the welfare and …
Persistent link: https://www.econbiz.de/10010345639
agents' discount rates (i.e., patience levels) shape the bargaining outcome. We find that the seller's commitment problem … he is more impatient, independently of his private valuation; hence, higher bargaining costs may give negotiators with … private information greater bargaining power. …
Persistent link: https://www.econbiz.de/10014441885