We study a sequential screening problem in which the information structure is characterized by neither first-order stochastic dominance (FOSD) nor mean-preserving spread (MPS). Specifically, we refer to a procurement contract with privately known mean and spread of cost distribution. The...

What are the effects of banning price discrimination in input markets? This paper considers the potential exclusionary effects of such policies, i.e., whether a restriction to uniform pricing leads a supplier to foreclose some downstream firms. In particular, I study how the conditions for...

Implantable medical device manufacturers are able to directly price discriminate by setting different prices for the same product in different hospitals. I analyze the welfare effects of this form of price discrimination in the case of Implantable Cardioverter Defibrillators (ICDs). I find that...

We consider a duopoly model where firms can identify only a share of consumers, which is positively correlated with the consumer’ preferences. Firms charge personalized prices to the consumers they can recognize and a uniform price to the rest of consumers. The firms’ available information...

This paper studies the role of loss-averse consumers' expectations about their future consumption in the pricing policy of a monopolistic firm in a dynamic setting. The firm offers a contract consisting of two units of service and the consumer makes two sequential consumption choices: to buy the...

This paper considers that upstream monopoly firm sets input price discrimination (IPD) or uniform input pricing (UIP) in the quality competition market. The marginal cost is related to product quality. We find: When overall quality is low, the upstream firm will give a lower...

This paper studies a bilateral trade game where (i) the buyer is uncertain about her desired consumption amount (needs) of a perfectly divisible good and receives a signal about it, (ii) and the seller posts a take-it-or-leave-it price to the buyer. The seller's information design trades off...

As an effective financing tool, crowdfunding helps entrepreneurs raise funds from the crowd and start innovative projects. The creator should select the mechanism and pricing policy accurately to maximize the expected profit. Based on a two-period model, we compare two mechanisms with several...

A key issue in antitrust economics is how overlapping ownership affects firm behavior and consumer welfare. This paper studies how horizontal ownership among downstream firms affects the input prices set by an upstream supplier. Using a general consumer demand function, I provide precise...

A theoretical model of spatial price discrimination predicts that firms should mark down input prices more the longer distance a supplier has to a competitor’s plant relative to their own plant. We test this prediction using contract-level data on prices of waste burned at energy plants. To...