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We review the recent literature on mobile termination rates (MTR) in mobile communication networks (M2M). This literature shows that mobile networks may have incentives to charge ineficient high termination charges leading to reduced surplus for consumers and society, and therefore should be...
Persistent link: https://www.econbiz.de/10004980246
Received literature have shown that if competing networks are restricted to linear and uniform pricing, high access charges can facilitate collusion; a result that breaks down if we allow for non-linear and discriminatory pricing, however. We show that by adding unbalanced calling pattern to the...
Persistent link: https://www.econbiz.de/10005702527
Persistent link: https://www.econbiz.de/10005143693
It is well-known that switching costs may facilitate monopoly pricing in a market with price competition between two suppliers of a homogenous good, provided the switching cost is above some critical level. We show that introducing consumer heterogeneity tends to increase the critical switching...
Persistent link: https://www.econbiz.de/10005231165
In a non-cooperative oligopoly model where firms use simple linear prices, Klemperer (1987) has shown that the existence of consumers’ switching costs may generate monopoly like prices, and thereby create substantial loss in welfare. We show that when allowing firms to use two-part tariffs,...
Persistent link: https://www.econbiz.de/10008914345
Received literature have shown that if competing networks are restricted to linear and uniform pricing, high access charges can facilitate collusion; a result that breaks down if we allow for non-linear and discriminatory pricing, however. In this paper we add unbalanced calling pattern to the...
Persistent link: https://www.econbiz.de/10008919566
In this paper we investigate some of the most frequent arguments for the use of slotting allowances. It has been claimed that slotting allowances can be profitability used to increase retail profits at the cost of increasing consumer prices. A second argument is that slotting allowances can be...
Persistent link: https://www.econbiz.de/10005476841
Persistent link: https://www.econbiz.de/10005499538
The article examines how the existence of a retailer owned brand, private label, aspects the price setting of a national brand. We …nd that the potential for a private label introduction may lead to price concessions from the national brand producer, but that actual private label...
Persistent link: https://www.econbiz.de/10011131673
Suppliers and consumer organizations have become increasingly concerned by the build-up of buyer power of retailers in many markets. A major concern is that strong retailers will abuse their power to exclude products and rival retailers from the market to be able to increase prices to consumers....
Persistent link: https://www.econbiz.de/10011190630