Showing 1 - 10 of 47
value multiple item auctions with a random number of bidders, who only seek one of the identical items and have the same …
Persistent link: https://www.econbiz.de/10010572235
Random choices of prices and product characteristics can be used by a contestable monopolist to deter entry and fully extract the monopoly rent. We develop this idea in a model of Bertrand price competition. In equilibrium, one firm enters the market and makes choices that are unpredictable to...
Persistent link: https://www.econbiz.de/10011263411
Laitinen (1980) derives an input allocation model for a multiproduct firm that first maximizes revenue and second maximizes profit. While theoretically elegant, the model has never been formulated empirically because of the complexity of the model’s price-deflated terms. This paper derives the...
Persistent link: https://www.econbiz.de/10010930709
We consider a duopolistic Bertrand competition setting in which competing firms can turn into intermediaries. The intermediation option allows firms to take advantage of the rival firm’s low price. We then give conditions for the existence of equilibrium.
Persistent link: https://www.econbiz.de/10010576417
This paper quantifies the effects of drug monopolies and low per-capita income on pharmaceutical prices in developing economies using the example of the antiretroviral drugs (ARVs) used to treat HIV.
Persistent link: https://www.econbiz.de/10010572226
Existing hedonic methods cannot be easily adapted to estimate willingness to pay for product characteristics when willingness to pay depends on a very large basket of goods. We show how to marry these methods with revealed preference arguments to estimate bounds on willingness to pay using data...
Persistent link: https://www.econbiz.de/10010678829
This paper studies the discriminatory pricing of an intermediate good and compares two models with a different timing of investments undertaken by the downstream firms, before or after the upstream monopolist sets the input prices. When the more efficient downstream firm is charged a higher...
Persistent link: https://www.econbiz.de/10010709090
We extend the gross substitutes and complements framework (Sun and Yang, 2006). Competitive equilibrium with indivisible goods exists under significantly weaker, intuitive and interpretable conditions. A generalized dynamic double-track procedure (Sun and Yang, 2008, 2009) finds the competitive...
Persistent link: https://www.econbiz.de/10010906374
We show that the commitment to not allocate may be exploited by a seller/social planner to increase the expected social surplus that can be achieved in the sale of an indivisible unit.
Persistent link: https://www.econbiz.de/10011076536
We provide a simple example demonstrating that the unconditional revelation information in a war of attrition with private budget constraints can decrease expected revenue. Our example suggests that information non-revelation can counteract the adverse revenue impact of budget constraints and...
Persistent link: https://www.econbiz.de/10010930710