Similar Search Results

All-Units Discounts as a Partial Foreclosure Device

Chao, Yong - 2019

-part tariff. At the same time, the AUD adopted by a dominant firm lead to “partial foreclosure” of an equally or more efficient …

Persistent link: https://www.econbiz.de/10012904633

Vertical Integration, Innovation and Foreclosure with Competing Ecosystems

Bisceglia, Michele; Padilla, Jorge; Piccolo, Salvatore; … - 2021

We study the competitive effects of a vertical merger in a digital industry where an integrated incumbent (closed ecosystem) competes with an open ecosystem formed by an upstream supplier (ecosystem gatekeeper) and two downstream retailers selling differentiated products. Absent innovation, the...

Persistent link: https://www.econbiz.de/10013212828

The effects of rebate contracts on the health care system

Graf, Julia - 2012

products and frequently use multiple or exclusive rebate contracts to exercise market power. Based on a Hotelling model of … horizontal and vertical product differentiation, we examine the controversy whether there exists a superior rebate scheme as far … differentiation, we find that firms clearly prefer multiple over exclusive rebate contracts. Contrary, there exists no rebate form …

Persistent link: https://www.econbiz.de/10009510114

Cartelization through buyer groups

Doyle, Chris; Han, Martijn A. - 2012

Retailers may enjoy stable cartel rents in their output market through the formation of a buyer group in their input market. A buyer group allows retailers to credibly commit to increased input prices, which serve to reduce combined final output to the monopoly level; increased input costs are...

Persistent link: https://www.econbiz.de/10009631585

Asymmetry in Capacity and the Adoption of All-Units Discounts

Chao, Yong - 2019

In many recent abuse of dominance antitrust cases, the dominant supplier adopts pricing schemes involving conditional rebates, whereas its smaller competitors often use simple linear pricing. We provide a game-theoretic justification for the observed asymmetry in pricing practices by studying a...

Persistent link: https://www.econbiz.de/10012898725

Platform Competition With User Rebates Under No Surcharge Rules

Schwartz, Marius - 2017

. Each platform has an incentive to gain transactions by increasing the spread between its merchant fee and user rebate above …

Persistent link: https://www.econbiz.de/10012942160

Exclusionary Discounts

Ordover, Janusz A. - 2009

We consider a two-period model with two sellers and one buyer in which the efficient outcome calls for the buyer to purchase one unit from each seller in each period. We show that when the buyer's valuations between periods are linked by switching costs and at least one seller is financially...

Persistent link: https://www.econbiz.de/10012721302

Colluding on Relative Prices

Winter, Ralph A. - 1997

Firms sometimes agree to limit the discounts they offer a class of customers, i.e., they collude on the price differences across consumer classes. Why? Courts have struck down agreements to limit discounts as violations of the laws against price-fixing. Are these collusive agreements in fact...

Persistent link: https://www.econbiz.de/10014060515

Competing with Loyalty Discounts

Greenlee, Patrick; Reitman, David S. - 2005

Loyalty discounts, offered to customers that meet purchase thresholds, can shift share from rival firms. In a differentiated product duopoly, only one firm employs a program that customers adopt in equilibrium. Whenever consumers strongly prefer the product of said firm, such discounts increase...

Persistent link: https://www.econbiz.de/10014029562

All-Units Discounts : Leverage and Partial Foreclosure in Single-Product Markets

Chao, Yong - 2017

We present an exclusionary theory of all-units discounts schemes. These schemes offer a per-unit discount to all units … to partially foreclose the small rival. Our theory suggests that pricing below cost is not necessary for all …

Persistent link: https://www.econbiz.de/10012959684

1
2
3
4
5
6
7
8
9
10
Next
Last