Showing 1 - 10 of 334
In a spatial competition setting there is usually a non-negative relationship between competition and quality. In this paper we offer a novel mechanism whereby competition leads to lower quality. This mechanism relies on two key assumptions, namely that the providers are motivated and...
Persistent link: https://www.econbiz.de/10010246067
We investigate private and social incentives for standardization to ensure market-wide system compatibility in a two-dimensional spatial competition model. We develop a new methodology to analyze competition on a torus and show that there is a fundamental conflict of interest between consumers...
Persistent link: https://www.econbiz.de/10010424907
We estimate the cost of transporting corn and the resulting degree of spatial differentiation among downstream firms that buy corn from upstream farmers and examine whether such differentiation softens competition enabling buyers to exert market power (defined as the ability to pay a price for...
Persistent link: https://www.econbiz.de/10012162628
This paper studies how firms' offshoring decisions shape a country's domestic production networks. We develop a model in which heterogeneous firms source inputs from multiple industries located in different domestic regions and foreign countries. Input sourcing entails communication with...
Persistent link: https://www.econbiz.de/10011721740
We investigate the relation between Net Neutrality regulation and Internet fragmentation. We model a two-sided market, where Content Providers (CPs) and consumers interact through Internet Service Providers (ISPs), and CPs sell consumers' attention to advertisers. Under Net Neutrality, a...
Persistent link: https://www.econbiz.de/10011305392
The paper considers a duopoly model in which firms inherited asymmetric market shares and history-based price discrimination is viable. However, firms can identify only a share of their own consumers depending to the degree of information accuracy. We derive the pricing strategies and we analyze...
Persistent link: https://www.econbiz.de/10012509424
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 is...
Persistent link: https://www.econbiz.de/10014284780
We study stable matchings on exogenously given or endogenously formed bipartite graphs that reflect constraints on …
Persistent link: https://www.econbiz.de/10011374193
of taxation and public good provision. Hotelling s Principle of Minimum Differentiation is applied in the context of tax … some extent, perfect tax discrimination presents a solution to the existence problem created by Hotelling tax competition …, but that the efficiency problem of Hotelling tax competition is exacerbated. …
Persistent link: https://www.econbiz.de/10011507860
requirements, we find that the Hotelling price path is no longer visible ex-post even though the Hotelling price rule holds ex …
Persistent link: https://www.econbiz.de/10012291879