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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
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
This paper studies the impact of a dominant firm's conditional discounts on competitors' learning-by-doing. In a vertical context where a dominant upstream supplier and a competitive fringe sell their products to a single downstream firm, we analyze whether the dominant supplier prefers to offer...
Persistent link: https://www.econbiz.de/10009727641
between a manufacturer and a retailer lead to vertical foreclosure, to the detriment of consumers and society. Finally, we …
Persistent link: https://www.econbiz.de/10011490565
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/10010318751
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
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
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
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
between a manufacturer and a retailer lead to vertical foreclosure, to the detriment of consumers and society. Finally, we …
Persistent link: https://www.econbiz.de/10011441858