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dynamic pricing implications of how current retail and wholesale prices for a brand must optimally take into account past and … future demand, respectively, for the brand. Using scanner data from the cola market, we find that while the retailer exploits …
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test our theory using a panel of household-level store-choice data. Contrary to the conventional wisdom, we find that …
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We consider a simple two period model where consumers have different switching costs. Before the market opens, there was an incumbent who sold to all consumers. We identify the equilibrium both with Stackelberg and Bertrand competition and show how the presence of low switching cost consumers...
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This paper studies regulatory policy interventions aimed at protecting sticky consumers who are exposed to exploitation. We model heterogeneous consumer switching costs alongside asymmetric market shares. This setting encompasses many markets in which established firms are challenged by new...
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same brand (within-brand trade-ins) to any brand (cross-brand trade-ins). Cross-brand trade-ins provide additional trade … study focuses on two competitive firms with brand differentiation and characterizes consumers on the basis of their … valuation of high-end products and switching costs. We use game theory to model four different trade-in scenarios to study …
Persistent link: https://www.econbiz.de/10013293479
We consider the Salop (1979) model of product differentiation and assume that consumers are uncertain about the qualities and prices of firms’ products. They can inspect all products at zero cost. A share of consumers is expectation-based loss averse. For these consumers, a purchase plan,...
Persistent link: https://www.econbiz.de/10013211121