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We consider a software vendor first selling a monopoly platform and then an application running on this platform. He may face competition by an entrant in the applications market. The platform monopolist can benefit from competition for three reasons. First, his profits from the platform...
Persistent link: https://www.econbiz.de/10011345756
We consider a vertically related market where one quantity-setting and another price-setting downstream firm negotiate … that the price-setting firm produces a higher output and earns a higher profit than the quantity-setting firm when … bargaining is decentralised. Additionally, both firms produce the same output, whereas the profit is higher under the price …
Persistent link: https://www.econbiz.de/10014426325
impact on hoarding at the wholesale level. The dynamics of Bid-Ask spread is then endogenised in a general model of price … transmission at the retail level to determine the impact of such dynamics on a) price transmission and b) the extent of hoarding …. Finally we test this generalized model against the extant models of price transmission and show that the generalization is …
Persistent link: https://www.econbiz.de/10013089825
In vertical markets volatility at one level of the market may transmit itself to another level. This paper examines the linkages that exist between spreads at different levels of the market hierarchy in Indian rice markets. It highlights the behavior of spreads in the presence of information...
Persistent link: https://www.econbiz.de/10014146987
this assumption, competition across qualities leads to second-degree price discrimination. We find that markups on low …
Persistent link: https://www.econbiz.de/10010227304
This paper demonstrates that the standard conclusions regarding the comparison of Cournot and Bertrand competition are reversed in a vertically related market with upstream monopoly and trading via two-part tariffs. In such a market, downstream Cournot competition yields higher output, lower...
Persistent link: https://www.econbiz.de/10010351502
In this paper, we tackle the dilemma of pruning versus proliferation in a vertically differentiated oligopoly under the assumption that some firms collude and control both the range of variants for sale and their corresponding prices, likewise a multiproduct firm. We analyse whether pruning...
Persistent link: https://www.econbiz.de/10011451580
Advancing in information technology has empowered firms with unprecedented flexibility when interacting with each other. We compare welfare results in a vertical market (e.g., manufacturers and retailers) across several types of pricing strategies depending upon (1) which side (retailers or...
Persistent link: https://www.econbiz.de/10013082373
price. …
Persistent link: https://www.econbiz.de/10010205412
In a recent paper, Alipranti et al. (2014, Price vs. quantity competition in a vertically related market, Economics … the input price. …
Persistent link: https://www.econbiz.de/10011569602