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Delbono, Flavio; Reggiani, Carlo; Sandrini, Luca - 2021

The unprecedented access of firms to consumer level data facilitates more precisely targeted individual pricing. We study the incentives of a data broker to sell data about a segment of the market to three competing firms. The segment only includes a share of the consumers in the market around...

Persistent link: https://www.econbiz.de/10012695129

Exclusive data, price manipulation and market leadership

Gu, Yiquan; Madio, Leonardo; Reggiani, Carlo - 2019

The unprecedented access of firms to consumer level data not only facilitates more precisely targeted individual pricing but also alters firms' strategic incentives. We show that exclusive access to a list of consumers can provide incentives for a firm to endogenously assume the price leader's...

Persistent link: https://www.econbiz.de/10012104125

Artificial collusion : examining supracompetitive pricing by Q-learning algorithms

Boer, Arnoud V. den; Meylahn, Janusz M.; Schinkel, … - 2022

We examine recent claims that a particular Q-learning algorithm used by competitors 'autonomously' and systematically … detailed analysis of the inner workings of this algorithm reveals that there is no immediate reason for alarm. We set out what … is needed to demonstrate the existence of a colluding price algorithm that does form a threat to competition. …

Persistent link: https://www.econbiz.de/10013375353

Fighting collusion by permitting price discrimination

Helfrich, Magdalena; Herweg, Fabian - 2016

We investigate the effect of a ban on third-degree price discrimination on the sustainability of collusion. We build a model with two firms that may be able to discriminate between two consumer groups. Two cases are analyzed: (i) Best-response symmetries so that profits in the static Nash...

Persistent link: https://www.econbiz.de/10011434582

Third-degree price discrimination in oligopoly when markets are covered

Dertwinkel-Kalt, Markus; Wey, Christian - 2020

We analyze oligopolistic third-degree price discrimination relative to uniform pricing, when markets are always covered. Pricing equilibria are critically determined by supply-side features such as the number of firms and their marginal cost differences. It follows that each firm's Lerner index...

Persistent link: https://www.econbiz.de/10012208315

Multi-product bargaining, bundling, and buyer power

Dertwinkel-Kalt, Markus; Wey, Christian - 2019

We re-consider the bilateral bargaining problem of a multi-product, manufacturer-retailer trading relationship. O'Brien and Shaffer (Rand JE 35:573-598, 2005) have shown that the unbundling of contracts leads to downward distorted production levels if seller power is strong, while otherwise the...