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Making sense of non-binding retail-price recommendations

Buehler, Stefan; Gärtner, Dennis L. - 2010

We model non-binding retail-price recommendations (RPRs) as a communication device facilitating coordination in vertical supply relations. Assuming both repeated vertical trade and asymmetric information about production costs, we show that RPRs may be part of a relational contract,...

Persistent link: https://www.econbiz.de/10010270481

Making sense of non-binding retail-price recommendations

Bühler, Stefan; Gärtner, Dennis L. - 2009

This paper provides a theoretical rationale for non-binding retail price recommendations (RPRs) in vertical supply relations. Analyzing a bilateral manufacturer-retailer relationship with repeated trade, we show that linear relational contracts can implement the surplusmaximizing outcome. If the...

Persistent link: https://www.econbiz.de/10010315607

Paying not to sell

Bacchiega, Emanuele; Bonroy, Olivier; Mabrouk, Rania - 2013

In this paper we show that, in the presence of buyer and seller power, a monopolist can enter into a costly contractual relationship with a low-quality supplier with the sole intention of improving its bargaining position relative to a high-quality supplier, without ever selling the good...

Persistent link: https://www.econbiz.de/10011730400

Auctions for private congestible infrastructures

Berg, Vincent A. C. van den - 2012

Persistent link: https://www.econbiz.de/10009722993

Supply Function Equilibria: Step Functions and Continuous Representations

Holmberg, Pär; Newbery, David; Ralph, Daniel - 2009

In most wholesale electricity markets generators must submit step-function offers of supply to a uniform price auction, and the market is cleared at the price of the most expensive offer needed to meet realised demand. Such markets can most elegantly be modelled as the pure-strategy, Nash...

Persistent link: https://www.econbiz.de/10010320261

Do Auctions select Efficient Firms?

Janssen, Maarten C.W.; Karamychev, Vladimir A. - 2007

conditions under which auctions may select inefficient firms and therefore lead to an inefficient allocation of resources …

Persistent link: https://www.econbiz.de/10010325294

Auctions for Private Congestible Infrastructures

van den Berg, Vincent A.C. - 2012

This paper investigates regulation by auctions of private supply of congestible infrastructures in two networks … generalised price or number of users leads to the first-best outcome. Moreover, these two auctions are robust: they attain the … structures. On the contrary, the performances (relative to the first-best) of the transfer and capacity auctions strongly depend …

Persistent link: https://www.econbiz.de/10010326341