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When more 'Informed Consumers' Reduces Welfare

Creane, Anthony - 2006

When product quality is unknown, a natural supposition is that having more consumers informed will increase consumer surplus and welfare. However, when a monopolist is selling a product of unknown quality, welfare can decrease in the fraction of informed consumers

Persistent link: https://www.econbiz.de/10012733624

A Model of Recommended Retail Prices

Lubensky, Dmitry - 2016

Manufacturers frequently post non-binding public price recommendations, but neither the rationale for this practice nor its impact on prices is well understood. I develop a model in which recommendations signal a manufacturer's production cost to searching consumers, who then form beliefs about...

Persistent link: https://www.econbiz.de/10013008134

Strategies and Evaluating Strategic Choices of Firms and Consumers

Huric Larsen, Jesper Fredborg - 2014

constraints based in Game Theory …

Persistent link: https://www.econbiz.de/10013045947

Competing for Strategic Buyers

Meisner, Vincent - 2018

Although revenue-management markets are rarely monopolistic, this assumption is typically made in the literature. In this paper, multiple sellers in total offer K identical goods to nK buyers with private persistent valuations. Goods are traded in continuous time before some deadline. All buyers...

Persistent link: https://www.econbiz.de/10012924228

Marketplace or Reselling? A Signalling Model

Resende, Joana - 2018

strategy, under two distinct business models: a marketplace mode and a reselling model. Then, we identify under which … choice turns out to signal the value of the good: the marketplace mode, which allows to internalize the spillover between the … two sites, is always preferred for a low value good. The reselling/ merchant mode, which allows to take advantage of the …

Persistent link: https://www.econbiz.de/10012927702

Vertical Integration With Multiproduct Firms : When Eliminating Double Marginalization May Hurt Consumers

Luco, Fernando - 2018

efficiencies, theory predicts that vertical integration in multiproduct industries may cause price changes that hurt consumers even …

Persistent link: https://www.econbiz.de/10012929201

Learning Product Characteristics and Consumer Preferences from Search Data

Armona, Luis; Lewis, Gregory; Zervas, Georgios - 2021

A building block of many models in empirical industrial organization is a characteristic space, where products are modeled as a bundle of characteristics over which consumers have preferences. The ability of such models to predict counterfactual outcomes depends on how well this characteristic...

Persistent link: https://www.econbiz.de/10013225637

Platform pricing under consumer myopia

D'Amico, Giuseppe - 2021

This paper studies the eﬀect of consumer myopia on the interplay between core and side downstream markets in monopoly and duopoly platforms. Our results highlight the relevance of consumer myopia in strategic platform decisions

Persistent link: https://www.econbiz.de/10013232332

Hide and Seek : Costly Consumer Privacy in a Market with Repeat Purchases

Wagman, Liad - 2015

When a firm can recognize its previous customers, it may use information about their past purchases in order to price discriminate. We study a model with a monopolist and a continuum of heterogeneous consumers, where consumers have the ability to maintain their anonymity and avoid being...

Persistent link: https://www.econbiz.de/10013037576

Does Uncertainty Matter? Consumer Behaviour Under Three-Part Tariffs

Lambrecht, Anja - 2011

In communication, information, and other industries, three-part tariffs are increasingly popular. A three-part tariff is defined by an access price, an allowance, and a marginal price for any usage in excess of the allowance. Empirical nonlinear pricing studies have focused on consumer choice...

Persistent link: https://www.econbiz.de/10012757055