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Vertical licensing, input pricing, and entry

Bakaouka, Elpiniki; Milliou, Chrysovalantou - 2017

We explore the incentives of a vertically integrated incumbent firm to license the production technology of its core input to an external firm, transforming the licensee into its input supplier. We find that the incumbent opts for licensing even when licensing also transforms the licensee into...

Persistent link: https://www.econbiz.de/10011597751

Complex pricing and consumer-side attention

Fischer, Christian; Rasch, Alexander; Wenzel, Tobias - 2020

This paper analyzes a market in which two horizontally differentiated firms compete by setting menus of two-part tariffs, and in which some consumers are not informed about the linear per-unit price component. We consider two regulatory interventions that limit firms’ ability to price...

Persistent link: https://www.econbiz.de/10012385361

Competition in the presence of individual demand uncertainty

Möller, Marc; Watanabe, Makoto - 2013

This paper sheds light on an empirical controversy about the effect of competition on price discrimination. We introduce individual demand uncertainty into Hotellingś model of product differentiation and show that firms offer advance purchase discounts. Consumers choose between an early...

Persistent link: https://www.econbiz.de/10010211444

Market structure and advance selling

Möller, Marc; Watanabe, Makoto - 2016

When products are sold in advance, i.e. prior to consumption, consumers trade off an early, uninformed purchase at a low price against a late, informed purchase at a high price. This paper considers the effect of market structure on the prevalence of advance selling. We show that in an...

Persistent link: https://www.econbiz.de/10011446893

Advance selling in the wake of entry

Ceschi, Nadia; Möller, Marc - 2021

This article provides a tractable model of inter-temporal price-discrimination by heterogeneous firms, imperative for our understanding of advance purchase markets in the wake of entry. The pricing schedule of a more efficient entrant is found to differ systematically from the pricing schedule...

Persistent link: https://www.econbiz.de/10012548537

Wholesale price discrimination with regulatory asymmetry

Asseyer, Andreas - 2020

This paper studies the welfare effects of wholesale price discrimination between downstream firms operating under different regulatory systems. I model a monopolistic intermediate good market in which production cost differences between downstream firms may be due to regulatory or technological...

Persistent link: https://www.econbiz.de/10012145225

The effects of rebate contracts on the health care system

Graf, Julia - 2012

products and frequently use multiple or exclusive rebate contracts to exercise market power. Based on a Hotelling model of … horizontal and vertical product differentiation, we examine the controversy whether there exists a superior rebate scheme as far … differentiation, we find that firms clearly prefer multiple over exclusive rebate contracts. Contrary, there exists no rebate form …

Persistent link: https://www.econbiz.de/10009510114

Cartelization through buyer groups

Doyle, Chris; Han, Martijn A. - 2012

Retailers may enjoy stable cartel rents in their output market through the formation of a buyer group in their input market. A buyer group allows retailers to credibly commit to increased input prices, which serve to reduce combined final output to the monopoly level; increased input costs are...

Persistent link: https://www.econbiz.de/10009631585

Downstream mode of competition with upstream market power

Manasakis, Constantine; Vlassis, Minas - 2013

In a two-tier oligopoly, where the downstream firms are locked in pair-wise exclusive relationships with their upstream input suppliers, the equilibrium mode of competition in the downstream market is endogenously determined as a renegotiation-proof contract signed between each downstream firm...

Persistent link: https://www.econbiz.de/10010205412

Competition in the presence of individual demand uncertainty

Möller, Marc; Watanabe, Makoto - 2013

This paper sheds light on a recent empirical controversy about the effect of competition on price discrimination in airline markets (Borenstein and Rose (1994), Gerardi and Shapiro, (2009)). We introduce individual demand uncertainty into Hotelling’s model of horizontal product differentiation...

Persistent link: https://www.econbiz.de/10010226097