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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

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

Competition in Prices and Service Level Guarantees

Johari, Ramesh; Weintraub, Gabriel Y. - 2011

In this paper we study the implications of service level guarantees (SLGs) in a model of oligopoly competition where providers compete to deliver a service to congestion-sensitive consumers. The SLG is a contractual obligation on the part of the service provider: regardless of how many customers...

Persistent link: https://www.econbiz.de/10014048265

The Oligopolistic Pricing Problem - A Suggested Price Freeze Remedy

Sagi, Guy - 2007

In this paper I set forth an antitrust remedy for the oligopolistic pricing problem. Oligopoly pricing resembles a repeated prisoners' dilemma game. Each firm has an incentive to moderately lower its price and thus increase its sales at its competitors' expense. However, each firm knows that its...

Persistent link: https://www.econbiz.de/10014049971

Asymmetries in Retail Gasoline Price Dynamics and Local Market Power

Deltas, George - 2007

Using monthly data from the 48 contiguous states (except Nevada) for the 1988-2002 period, it is shown that retail gasoline prices respond faster to wholesale price increases than to equivalent wholesale price decreases. Moreover, markets with high average retail-wholesale margins experience a...

Persistent link: https://www.econbiz.de/10014051276

Tax Responses in Platform Industries

Kind, Hans Jarle; Köthenbürger, Marko; Schjelderup, … - 2010

Two-sided platform firms serve distinct customer groups that are connected through interdependent demand, and include major businesses such as the media industry, banking, and the software industry. A well known result of tax incidence is that consumers of a more heavily taxed good pay a higher...

Persistent link: https://www.econbiz.de/10014197828