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Bargaining under the Illusion of Transparency

Madarász, Kristóf - C.E.P.R. Discussion Papers - 2015

An uninformed seller offers an object to a privately informed buyer. The buyer projects information and exaggerates the probability that the seller is informed. Letting the buyer bargain and name her own price raises the seller's payoff above the full-commitment payoff. Under seller-offer...

Persistent link: https://www.econbiz.de/10011168901

To Charge or Not to Charge: Evidence from a Health Products Experiment in Uganda

Fischer, Greg; Karlan, Dean S.; McConnell, Margaret; … - C.E.P.R. Discussion Papers - 2014

Pricing policy for any experience good faces a key tradeoff. On one hand, a price reduction increases immediate demand …

Persistent link: https://www.econbiz.de/10011083717

Strategic Pricing and Entry under Universal Service and Cross-Market Price Constraints

Anton, James J; Weide, James H Vander; Vettas, Nikolaos - C.E.P.R. Discussion Papers - 1998

In this paper, we examine how cross-market price restrictions impact strategic entry and pricing decisions. A …

Persistent link: https://www.econbiz.de/10005792026

Markets: The Fulton Fish Market

Graddy, Kathryn - C.E.P.R. Discussion Papers - 2006

Centralized markets with large numbers of buyers and sellers are generally thought of as being competitive and well-functioning. However, an important role of centralized markets is matching heterogeneous products, such as fish, to buyers of these products. The high level of differentiation in...

Persistent link: https://www.econbiz.de/10005136669

Payment Evasion

Buehler, Stefan; Halbheer, Daniel; Lechner, Michael - C.E.P.R. Discussion Papers - 2015

This paper models payment evasion as a source of profit by letting the firm choose the purchase price and the fine imposed on detected payment evaders. For a given price and fine, the consumers purchase, evade payment, or choose the outside option. We show that payment evasion leads to a form of...

Persistent link: https://www.econbiz.de/10011276378

Buying Online: Sequential Decision Making by Shopbot Visitors

Dulleck, Uwe; Hackl, Franz; Weiss, Bernhard; … - C.E.P.R. Discussion Papers - 2008

In this article we propose a two stage procedure to model demand decisions by customers who are balancing several dimensions of a product. We then test our procedure by analyzing the behavior of buyers from an Austrian price comparison site. Although in such a market a consumer will typically...

Persistent link: https://www.econbiz.de/10005504575

Manipulating Reliance on Intuition Reduces Risk and Ambiguity Aversion.

Butler, Jeff; Guiso, Luigi; Jappelli, Tullio - C.E.P.R. Discussion Papers - 2013

Prior research suggests that those who rely on intuition rather than effortful reasoning when making decisions are less averse to risk and ambiguity. The evidence is largely correlational, however, leaving open the question of the direction of causality. In this paper, we present experimental...

Persistent link: https://www.econbiz.de/10011083555

A Search Model of Optimal Pricing and Production

Alpern, Steve; Snower, Dennis J. - C.E.P.R. Discussion Papers - 1988

This paper presents an overview of the application of the mathematical theory of 'high-low' search to firms' pricing …. We compare and contrast the high-low model with the conventional microeconomic model of pricing and production. We show … how the firm uses its pricing and production decisions to partition the uncertainty interval it faces and thereby …

Persistent link: https://www.econbiz.de/10005656333

The role of intuition and reasoning in driving aversion to risk and ambiguity

Butler, Jeff; Guiso, Luigi; Jappelli, Tullio - C.E.P.R. Discussion Papers - 2011

Using a large sample of retail investors as well as experimental data we find that risk and ambiguity aversion are positively correlated. We show the common link is decision style: intuitive thinkers tolerate more risk and ambiguity than effortful reasoners. One interpretation is that intuitive...

Persistent link: https://www.econbiz.de/10008915807