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Price Fairness and Strategic Obfuscation

Allender, William - 2020

conditions under which it is profitable for firms to engage in price obfuscation, given the potential fairness concerns of … consumers. We study how price obfuscation affects consumer fairness concerns, consumer demand, and equilibrium pricing … strategies. The findings suggest that if obfuscation mitigates fairness concerns, it can arise as an equilibrium outcome, even if …

Persistent link: https://www.econbiz.de/10012855517

Excess capacity and pricing in Bertrand-Edgeworth markets : experimental evidence

Fonseca, Miguel A.; Normann, Hans-Theo - 2012

We conduct experiments testing the relationship between excess capacity and pricing in repeated Bertrand-Edgeworth duopolies and triopolies. We systematically vary the experimental markets between low excess capacity (suggesting monopoly) and no capacity constraints (suggesting perfect...

Persistent link: https://www.econbiz.de/10009622438

Price Ceilings as Focal Points? An Experimental Test

Normann, Hans-Theo - 2007

In this experiment, we analyze whether price ceilings can have a collusive effect in laboratory markets. Our main interest is the focal-point hypothesis which says that a price ceiling may facilitate tacit collusion and lead to higher prices because it resolves a coordination problem inherent to...

Persistent link: https://www.econbiz.de/10012729230

Signaling Quality through Prices in an Oligopoly

Janssen, Maarten C.W.; Roy, Santanu - 2007

Firms signal high quality through high prices even if the market structure is highly competitive and price competition is severe. In a symmetric Bertrand oligopoly where products may differ only in their quality, production cost is increasing in quality and the quality of each firm’s product...

Persistent link: https://www.econbiz.de/10010325591

Should firms employ personalized pricing?

Matsumura, Toshihiro; Matsushima, Noriaki - 2013

The recent developments in information technology (IT) have enabled firms to employ personalized pricing. Should all firms employ personalized pricing even though the adaptation costs of such pricing strategies are not high? This paper theoretically demonstrates a situation in which all firms do...

Persistent link: https://www.econbiz.de/10010332203

The Choice of Prices vs. Quantities under Uncertainty

Reisinger, Markus; Reßner, Ludwig - 2007

This paper analyzes a duopoly model with stochastic demand in which firms first choose their strategy variable and compete afterwards. Contrary to the existing literature, we show that firms do not always choose a quantity which is the variable that induces a smaller degree of competition. The...

Persistent link: https://www.econbiz.de/10010427484

Separating the ex post effects of mergers: an analysis of structural changes on the Hungarian retail gasoline market

Csorba, Gergely; Koltay, Gábor; Farkas, Dávid - 2011

This paper develops an empirical method to identify the price effects of simultaneous mergers and to separate the different effects on the prices of the buyer and seller firms and on the prices of their respective competitors. Our difference-in-differences approach exploits variation in the...

Persistent link: https://www.econbiz.de/10010494453

The effects of product bundling in duopoly

Reisinger, Markus - 2004

This paper studies the incentives for multiproduct duopolists to sell their products as a bundle. It is shown that contrary to the monopoly case bundling may reduce profits and increase consumer rent. This is the case if consumers' reservation values are negatively correlated. The reason is that...

Persistent link: https://www.econbiz.de/10002812536

Pricing of Complements and Network Effects

Economides, Nicholas; Viard, V. Brian - 2013

We discuss the case of a monopolist of a base good in the presence of a complementary good provided either by it or by another firm. We assess and calibrate the extent of the influence on the profits from the base good that is created by the existence of the complementary good. We establish an...

Persistent link: https://www.econbiz.de/10014040381

Customization with Vertically Differentiated Products

Loginova, Oksana; Wang, Xinghe Henry - 2016

We consider a duopoly market with heterogenous consumers. The firms initially produce vertically differentiated standard products located at the end points of the variety interval. Customization provides ideal varieties for consumers but has no effect on quality. The firms first choose whether...

Persistent link: https://www.econbiz.de/10014045225