We analyze pricing and competition under paid prioritization within a model of interconnected internet service providers (ISPs), heterogeneous content providers (CPs) and heterogeneous consumers. We show that prioritization is welfare superior to a regime without prioritization (network...

Since June 15, 2017, mobile network operators in the European Economic Area may not impose surcharges for making telephone calls, sending text messages, or using data services in other EEA countries. The regulation was designed to create a digital domestic market without adversely affecting...

We analyze a simple supply chain with one supplier, one retailer and uncertainty about market demand. Focusing on the incentives of the supplier and the retailer to enhance their private information about the actual market conditions, we show that choices on information acquisition are strategic...

In current power markets, the bulk of electricity is sold wholesale and transported to consumers via long-distance transmission lines. Recently, decentralized local power markets have evolved, often as isolated networks based on solar generation. We analyze strategic pricing, investment, and...

Fairtrade certification is intended to improve both the income and living conditions of producers, thereby creating more fairness in international trade. However, theoretical considerations and empirical studies show that this goal is only achieved to a limited extent, at least for coffee:...

Fairtrade-Siegel sollen die Einkommen und Lebensbedingungen von ProduzentInnen erhöhen und so zu mehr Gerechtigkeit im internationalen Handel führen. Ökonomische Überlegungen und empirische Untersuchungen zeigen jedoch, dass dieses Ziel bei Kaffee nur eingeschränkt erreicht wird: Das...

We present a model with firms selling (homogeneous) products in two imperfectly segmented markets (a "high-demand" and a "low-demand" market). Buyers are mobile but restricted by transportation costs, so that imperfect arbitrage occurs when prices differ in both markets. We show that equilibria...