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Plastic Clashes: Competition among Closed and Open Systems in the Credit Card Industry.

Manenti, Fabio M.; Somma, Ernesto - EconWPA - 2002

This paper analyses market competition between two different types of credit card platforms: not-for-profit associations and proprietary systems. The main focus is on the role of the interchange fee set by not-for-profit platforms. We show that when the interchange fee is set so as to maximise...

Persistent link: https://www.econbiz.de/10005076892

Vertical Restraints and Parallel Imports with Differentiated Products

Cosac, Teodora - EconWPA - 2004

A monopoly selling in two countries can use exclusive or competitive retailers to distribute its product. A low wholesale price in one country might induce a retailer to resell the good for profit in the other country, generating thereby parallel imports which compete with the authorized sales....

Persistent link: https://www.econbiz.de/10005134426

The Competitive Effects of Price-Floors

Bhaskar, V.; UK, Andrews KY16 9AL - EconWPA - 1996

We analyze the effects of a legally-binding price floor using Hotelling's model of locational competition. A moderate price-floor destroys the maximal differentiation equilibrium of d'Aspremont et. al., by allowing firms to compete more aggressively for market share. Minimum differentiation...

Persistent link: https://www.econbiz.de/10005134523

Eliciting Demand Information through Cheap Talk: An Argument in Favor of Price Regulations

Frisell, Lars; Lagerlof, Johan N.M. - EconWPA - 2005

A firm must decide whether to launch a new product. A launch implies considerable fixed costs, so the firm would like to assess downstream demand before it decides. We study under which conditions a potential buyer would be willing to reveal his willingness to pay under different pricing...

Persistent link: https://www.econbiz.de/10005412896

Equilibrium Vertical Foreclosure in the Repeated Game

Normann, Hans-Theo - EconWPA - 2004

This paper analyzes if vertical foreclosure can emerge as an equilibrium outcome of an infinitely repeated game …. Foreclosure is profitable due to a 'raising rival's costs' effect but it is not a Nash equilibrium of the static game. The results … are that foreclosure is in fact a subgame perfect Nash equilibrium of the repeated game, and it may facilitate collusion …

Persistent link: https://www.econbiz.de/10005076896

Quality of Information and Oligopolistic Price Discrimination

Liu, Qihong; Serfes, Konstantinos - EconWPA - 2002

Recent developments in information technology (IT) have resulted in the collection of a vast amount of customer specific data. As the IT advances the quality of such information improves. We analyze a sequential spatial model of oligopolistic third degree price discrimination where the firms use...

Persistent link: https://www.econbiz.de/10005561388

Quality of Information and Oligopolistic Price Discrimination

Liu, Qihong; Serfes, Konstantinos - EconWPA - 2002

We investigate how the endogenous acquisition of information, of a certain quality level, on consumers' willingness to pay (location) affects the equilibrium prices and welfare in a spatial price discrimination model. By varying the information quality we are able to obtain the equilibrium in...

Persistent link: https://www.econbiz.de/10005561406

Endogenous Acquisition of Information on Consumers Willingness to Pay in a Product Differentiated Duopoly

Liu, Qihong; Serfes, Konstantinos - EconWPA - 2001

We look at the incentives of two firms, who produce horizontally differentiated products, to acquire information of a certain quality on consumer willingness to pay. A firm who possesses such information can offer its product to different consumer groups at different prices (third degree price...

Persistent link: https://www.econbiz.de/10005561417

ENDOGENOUS ACQUISITION OF INFORMATION ON CONSUMER WILLINGNESS TO PAY IN A PRODUCT DIFFERENTIATED DUOPOLY

SERFES, QIHONG LIU KONSTANTINOS - EconWPA - 2001

We investigate how the endogenous acquisition of information, of a certain quality level, on consumers' willingness to pay (location) affects the equilibrium prices and welfare in a spatial price discrimination model. Higher information quality implies that the firms who acquire the information...

Persistent link: https://www.econbiz.de/10005561462

Parallel Imports and Music CD Prices

Chen, Yeh-ning; Png, Ivan - EconWPA - 2004

Parallel imports are a significant academic and policy issue. Official investigations into the impact of parallel imports on music CD prices have reached widely conflicting conclusions. This note reports an event study on an international panel of changes in copyright law to permit or disallow...

Persistent link: https://www.econbiz.de/10005119321