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The market for melons: Cournot competition with unobserval qualities

Argenton, Cédric - 2006

Two firms produce different qualities at possibly different, constant marginal costs. They compete in quantities on a market where buyers only observe the average quality supplied. The model is a generalization of the standard Cournot duopoly, which corresponds to the special case where the two...

Persistent link: https://www.econbiz.de/10010281170

Producers bargaining over a quality standard

Argenton, Cédric - 2006

We study an asymmetric information model in which two firms are active on a market where buyers only observe the average quality supplied. Quantities and cost structures are exogenously given and firms compete in quality. Before choosing their qualities, they bargain over a perfectly enforcable...

Persistent link: https://www.econbiz.de/10010281207

Joint customer data acquisition and sharing among rivals

Jentzsch, Nicola; Sapi, Geza; Suleymanova, Irina - 2010

It is increasingly observable that in different industries competitors jointly acquire and share customer data. We propose a modified Hotelling model with two-dimensional consumer heterogeneity to analyze the incentives for such agreements and their welfare implications. In our model the...

Persistent link: https://www.econbiz.de/10010285763

Explaining the interplay between merchant acceptance and consumer adoption in two-sided markets for payment methods

Huynh, Kim P.; Nicholls, Gradon; Shcherbakov, Oleksandr - 2019

The market for payment cards is inherently two sided. Consumers benefit from increased merchant acceptance of payment cards and vice versa. To quantify the interdependence of consumer and merchants or network externalities, we construct and estimate a structural two-sided model of a payment...

Persistent link: https://www.econbiz.de/10012144763

M-Payments, Financial Inclusion, and Full Market Coverage

Karamychev, Vladimir A.; Viaene, Jean-Marie - 2021

Mobile payments (m-payments) increase the accessibility of large segments of society to financial services while before the traditional banking system excluded these for lack of proof of identity and because of unsafe environments. This constitutes a key driver of new growth strategies of the...

Persistent link: https://www.econbiz.de/10012582058

SINKING THE INTERNET: PRICING, SUNK COSTS, AND MARKETSTRUCTURE ONLINE

Latcovich, Simon; Smith, Howard - University <Oxford> / Department of Economics - 2000

vertical product differentiation,incomplete consumer awareness, and perfect information exchange between retailers.Advertising … and revenue data for the online book market reveal that consumers respondto advertising rather than low prices. As the … market increases, advertising costs escalateand there is no new entry. Advertising to sales ratios and market concentration …

Persistent link: https://www.econbiz.de/10005870260

Firm growth: empirical analysis

Coad, Alexander; Hölzl, Werner - Max-Planck-Gesellschaft zur Förderung der Wissenschaften - 2010

Recent research has led to the empirical regularity that rm growth rate distributionsare heavy tailed. This nding implies that a few rms experience spectaculargrowth rates and decline, but that most rms have marginal growth rates. The literatureon high growth rms shows that high growth rms are...

Persistent link: https://www.econbiz.de/10009022146

Competition on Common Value Markets with Naive Traders– A Theoretical and Experimental Analysis

Chlaß, Nadine; Güth, Werner - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2007

Theoretically and experimentally, we generalize the analysis of acquiringa company (Samuelson and Bazerman 1985) by allowing for competition ofboth, buyers and sellers. Naivety of both is related to the idea that higherprices exclude worse qualities. While competition of naive buyers...

Persistent link: https://www.econbiz.de/10005866465

Compatibility choice in vertically differentiated technologies

Garcia, Filomena; Vergari, Cecilia - Center for Operations Research and Econometrics … - 2008

We analyse firms' incentives to provide two-way compatibility between two network goodswith different intrinsic qualities. We study how the relative importance of verticaldifferentiation with respect to the network effect influences the price competition as well as thecompatibility choice. The...

Persistent link: https://www.econbiz.de/10005868733

Transparency, price-dependent demand and product variety

Gu, Yiquan; Wenzel, Tobias - 2010

This paper revisits the relationship between transparency on the consumer side and product variety as analyzed in Schultz (2009). We identify two welfare effects of transparency. More transparency decreases price-cost margins which is beneficial forwelfare. On the other hand, more transparency...

Persistent link: https://www.econbiz.de/10008666960