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Price discrimination strategies, which offer different prices to customers based on differences in their valuations, have become common practice. While it allows sellers to increase their profits, it also raises several concerns in terms of fairness, e.g., by charging higher prices (or denying...
Persistent link: https://www.econbiz.de/10013214266
We develop a dynamic entry model of multi-store oligopoly with heterogeneous markets, and estimate it using data on hamburger chains in Canada (1970-2005). Because more lucrative markets attract more entry, firms appear to favor the presence of more rivals. Thus unobserved heterogeneity across...
Persistent link: https://www.econbiz.de/10013035541
Persistent link: https://www.econbiz.de/10011612088
We develop a dynamic entry model of multi-store oligopoly with heterogeneous markets, and estimate it using data on hamburger chains in Canada (1970–2005). Because more lucrative markets attract more entry, firms appear to favor the pres- ence of more rivals. Thus unobserved heterogeneity...
Persistent link: https://www.econbiz.de/10011800622
This paper presents a new decomposition approach for measuring deterrence motives in dynamic oligopoly games. Our approach yields a scale-free and interpretable measure of deterrence motives that informs researchers about the proportion for which deterrence motives account of all entry motives....
Persistent link: https://www.econbiz.de/10013295223
Persistent link: https://www.econbiz.de/10014551885
This paper explores the rationality of non-strategic entry decisions. I develop a model where firms commit to being strategic or non-strategic before making their simultaneous entry decisions. My analysis shows that commitment to non-strategic entry behavior can be rationalized. Furthermore, the...
Persistent link: https://www.econbiz.de/10014255473