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Spatial Price Discrimination with Heterogeneous Firms

Vogel, Jonathan - 2009

In this paper we present and solve a three-stage game of entry, location, and pricing in a spatial price discrimination framework with arbitrarily many heterogeneous firms. We provide a unique characterization of all equilibria without imposing restrictions on the distribution of marginal costs

Persistent link: https://www.econbiz.de/10013159526

Prices and Coupons for Breakfast Cereals

Nevo, Aviv; Wolfram, Catherine - 2000

This paper explores the relationship between shelf prices and manufacturers' coupons for 25 ready-to-eat breakfast cereals. Contrary to the predictions of static monopoly price discrimination, we find the shelf prices for a particular brand in a particular city are generally lower during periods...

Persistent link: https://www.econbiz.de/10014201979

Sub-National Differentiation and the Role of the Firm in Optimal International Pricing

Balistreri, Edward J. - 2007

We illuminate the relationship between optimal firm pricing and optimal trade policy by exploring a generalized model that accommodates product differentiation at both the national and sub-national (firm) levels. We assume monopolistic competition in the differentiated products at the...

Persistent link: https://www.econbiz.de/10012776874

Evaluating Welfare with Nonlinear Prices

Reiss, Peter C. - 2006

This paper examines how to evaluate consumer welfare when consumers face nonlinear prices. This problem arises in many settings, such as devising optimal pricing strategies for firms, assessing how price discrimination affects consumers, and evaluating the efficiency costs of many transfer...

Persistent link: https://www.econbiz.de/10012779746

On the Efficiency of Competitive Electricity Markets with Time-Invariant Retail Prices

Borenstein, Severin; Holland, Stephen P. - 2021

markets lead to outcomes (prices and investment) that are not first-best, it even fails to achieve the second-best optimum … given the constraint of time-invariant pricing. We then show that attempts to correct the level of investment through taxes … necessarily reduce capacity investment, and it is likely to harm customers that are already on RTP …

Persistent link: https://www.econbiz.de/10013247631

Price Discrimination, Copyright Law, and Technological Innovation : Evidence from the Introduction of Dvds

Mortimer, Julie Holland - 2014

This paper examines the welfare effects of intellectual property protection, accounting for firms' optimal responses to legal environments and technological innovation. I examine firms' use of indirect price discrimination in response to U.S. copyright law, which effectively prevents direct...

Persistent link: https://www.econbiz.de/10012752518

Music for a Song : An Empirical Look at Uniform Song Pricing and its Alternatives

Shiller, Benjamin - 2010

Economists have well-developed theories that challenge the wisdom of the common practice of uniform pricing. With digital music as its context, this paper explores the profit and welfare implications of various alternatives, including song-specific pricing, various forms of bundling, two-part...

Persistent link: https://www.econbiz.de/10013150741

Bundling Among Rivals : A Case of Pharmaceutical Cocktails

Lucarelli, Claudio - 2010

We empirically analyze the welfare effects of cross-firm bundling in the pharmaceutical industry. Physicians often treat patients with "cocktail" regimens that combine two or more drugs. Firms cannot price discriminate because each drug is produced by a different firm and a physician creates the...

Persistent link: https://www.econbiz.de/10013138761

Income Differences and Prices of Tradables : Insights from an Online Retailer

Simonovska, Ina - 2010

I study the positive relationship between prices of tradable goods and per-capita income. I develop a highly tractable general equilibrium model of international trade with heterogeneous firms and non-homothetic consumer preferences that positively links prices of tradables to consumer income....

Persistent link: https://www.econbiz.de/10013139751

Prices and Promotions in U.S. Retail Markets : Evidence from Big Data

Hitsch, Günter J. - 2019

We document the degree of price dispersion and the similarities as well as differences in pricing and promotion strategies across stores in the U.S. retail (grocery) industry. Our analysis is based on “big data” that allow us to draw general conclusions based on the prices for close to...

Persistent link: https://www.econbiz.de/10012862405