Showing 1 - 5 of 5
This paper studies vertical relations in a search market. As the wholesale arrangement between a manufacturer and its retailers is typically unobserved by consumers, their beliefs about who is to be blamed for a price deviation play a crucial role in determining wholesale and retail prices. The...
Persistent link: https://www.econbiz.de/10015259599
I show that the equilibrium derived in Gravelle and Sivey (2010) cannot hold for rational consumers. I then partially characterize the continuum of possible equilibria for rational consumers.
Persistent link: https://www.econbiz.de/10015234307
Some important forms of contests have participation costs and `default allocations’ where the contest prize is still awarded even when no-one actively competes. We solve a general, all-pay contest model that allows for flexible forms of these features under arbitrary asymmetry. We then use our...
Persistent link: https://www.econbiz.de/10015268799
Some important contests have participation costs and `default allocations’ where the contest prize is still awarded even when no-one actively competes. This paper incorporates flexible forms of these features into a general (single-prize) all-pay contest model under arbitrary asymmetry. We...
Persistent link: https://www.econbiz.de/10015272338
We study how a monopoly manufacturer optimally manages her contractual relations with retailers in markets with consumer search. By choosing wholesale prices, the manufacturer affects the degree of competition between retailers and the incentives of consumers to search. We show that depending on...
Persistent link: https://www.econbiz.de/10015253397