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This paper considers a dynamic duopoly market with strategic, price setting firms and an infinite set of fully rational, privately informed consumers who enter the market sequentially. I show that there exists a sequential equilibrium in which prices converge to their realized product qualities...
Persistent link: https://www.econbiz.de/10013099382
This paper examines the welfare effects of informational intermediation. A (shortlived) seller sets the price of a product that is sold through a (long-lived) informational intermediary. The intermediary can disclose information about the product to consumers, earns a fixed percentage of the...
Persistent link: https://www.econbiz.de/10013295534
Besides their role in reducing frictions and facilitating trade, two-sided platforms increasingly collect and process data, e.g., supply and demand forecasts, that can further affect market outcomes. This paper studies how a platform may choose to disclose its information about future demand to...
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firm invests, and the market shuts down. Learning introduces reputation incentives such that a fraction of entrants do … invest. If the market operates with spot prices, simple regulation can enhance the role of reputation to induce investment …
Persistent link: https://www.econbiz.de/10012460760
This study examines a reputation-concerned entrepreneur’s incentives to provide disaggregated information about a …
Persistent link: https://www.econbiz.de/10013491892
effect.” To that end, we develop a formal model to gain insight into the role of reputation in the enforcement and deterrence …
Persistent link: https://www.econbiz.de/10014358964