Showing 81 - 90 of 36,893
The supersizing phenomenon where menu prices for large fast food portions appear to be well below their marginal production costs is of considerable scholarly and policy interest. This article examines a monopoly facing demand functions where the single-crossing condition is violated. We find a...
Persistent link: https://www.econbiz.de/10012917618
The supersizing phenomenon where menu prices for large fast food portions appear to be well below their marginal production costs is of considerable scholarly and policy interest. This article examines a monopoly facing demand functions where the single-crossing condition is violated. We find a...
Persistent link: https://www.econbiz.de/10012918026
An auctioneer faces a pool of potential bidders that changes over time. She can delay the auction at a cost, in the hopes of having a thicker market later on. We identify a property of the distribution of bidder values—its “price elasticity”—that governs the distortions caused by revenue...
Persistent link: https://www.econbiz.de/10012902785
We analyze how proxy advisors, which sell voting recommendations to shareholders, affect corporate decision-making. If the quality of the advisor's information is low, there is overreliance on its recommendations and insufficient private information production. In contrast, if the advisor's...
Persistent link: https://www.econbiz.de/10012903453
We develop a model of inter-temporal and intra-temporal price discrimination by airlines to study the ability of different discriminatory mechanisms to remove sources of inefficiency and the associated distributional implications. To estimate the model's multi-dimensional distribution of...
Persistent link: https://www.econbiz.de/10012907654
A principal faces an agent with frame-dependent preferences and designs an extensive-form decision problem with a frame at each stage. This allows the principal to induce dynamic inconsistency and thereby circumvent incentive compatibility constraints. We show that a vector of contracts can be...
Persistent link: https://www.econbiz.de/10013225901
This chapter reviews recent theoretical work on the design of regulatory policy, focusing on the complications that arise when regulated suppliers have better information about the regulated industry than do regulators. The discussion begins by characterizing the optimal regulation of a monopoly...
Persistent link: https://www.econbiz.de/10014024589
In the context of monopolistic nonlinear pricing, we compare the maximum profits of bundling, incremental discounts, and all-units discounts. When the number of pricing blocks is unrestricted, incremental discounts perform weakly the worst. However, if the performance of incremental discounts is...
Persistent link: https://www.econbiz.de/10013114214
We present a diagrammatic and step-by-step analysis of price signaling quality. Because quality is a continuum on the real positive line, out-of-equilibrium beliefs need not be specified, i.e., every positive price is a positive outcome in equilibrium. We first study the behavior of the monopoly...
Persistent link: https://www.econbiz.de/10013115026
If buyers can choose to initiate bargaining with a seller, how does this alter the price that the seller 'posts' in the market? And does the option of bargaining raise or lower expected welfare?This paper develops a simple model to answer these questions. With a single seller, the potential for...
Persistent link: https://www.econbiz.de/10013052738