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This study explores the welfare impact of personalized pricing for consumers in a duopolistic two-sided market, with consumers single-homing and developers affiliating with a platform according to their outside option. Personalized pricing, which is private in nature, cannot influence...
Persistent link: https://www.econbiz.de/10014490912
offers especially when many consumers prefer comparable offers. This occurs after initial periods with strong competition and … leads to lower welfare for all consumers. In treatments where firms cannot monitor the competition, firms end up having to …
Persistent link: https://www.econbiz.de/10010433911
find that consumer welfare is higher under competition. However, that is a result from the wider choice of products rather …
Persistent link: https://www.econbiz.de/10013037834
pricing algorithms that allow for high-frequency price changes. What are the implications for price competition? We develop a … model of price competition where firms can differ in pricing frequency and choose algorithms that autonomously react to …
Persistent link: https://www.econbiz.de/10012175360
We compare a discriminatory pricing regime with a non-discriminatory regime in a competitive bottleneck model where content providers endogenously sort into single or multi-homers. We find that consumer prices rise when the share of single-homers increases in the non-discriminatory case, while...
Persistent link: https://www.econbiz.de/10011630878
When products are sold in advance, i.e. prior to consumption, consumers trade off an early, uninformed purchase at a low price against a late, informed purchase at a high price. This paper considers the effect of market structure on the prevalence of advance selling. We show that in an...
Persistent link: https://www.econbiz.de/10011446893
found to differ systematically from the pricing schedule of a more prominent incumbent. By diverting competition to a stage …
Persistent link: https://www.econbiz.de/10012548537
sellers shape the market structure in platform industries. If product market competition is tough, sellers avoid competitors … markets, several homogeneous platforms segment the market. Instead, if product market competition is soft, agglomeration on a … competition. …
Persistent link: https://www.econbiz.de/10011798855
competition between the TV channels, since they take into account the fact that a lower viewer price at one channel will harm …
Persistent link: https://www.econbiz.de/10003955216
assess their suitability. We study the effects of product differentiation and search costs on competition and market outcomes …
Persistent link: https://www.econbiz.de/10013373118