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Effects of qualification in expert markets with price competition and endogenous verifiability

Schneider, Tim; Bizer, Kilian - 2017

We investigate a market in which experts have a moral hazard problem because they need to invest in costly but … unobservable effort to identify consumer problems. Experts have either high or low qualification and can invest either high or low … effort in their diagnosis. High skilled experts are able to identify problems with some probability even with low effort …

Persistent link: https://www.econbiz.de/10011687778

Too much or too little? : price-discrimination in a market for credence goods

Dulleck, Uwe; Kerschbamer, Rudolf; Konovalov, Alexander … - 2014

In markets for credence goods sellers are better informed than their customers about the quality that yields the highest surplus from trade. This paper studies second-degree price-discrimination in such markets. It shows that discrimination regards the amount of advice offered to customers and...

Persistent link: https://www.econbiz.de/10010354736

Expert qualification in markets for expert services : a Sisyphean Task?

Schneider, Tim; Bizer, Kilian - 2017

Sisyphean task, as theory predicted. Nevertheless, we observe high skilled experts investing significantly less effort in … market efficiency in a setting in which experts need to invest in costly but unobservable effort to identify consumer … problems and consumers are able to visit multiple experts for diagnosis. We introduce heterogeneously-qualified experts …

Persistent link: https://www.econbiz.de/10011730221

Nonlinear pricing, market coverage, and competition

Yang, Huanxing; Ye, Lixin - In: Theoretical economics : TE ; an open access journal in … 3 (2008) 1, pp. 123-153

This paper considers a nonlinear pricing framework with both horizontally and vertically differentiated products. By endogenizing the set of consumers served in the market, we are able to study how increased competition affects nonlinear pricing, in particular the market coverage and quality...

Persistent link: https://www.econbiz.de/10011700613

Price equilibrium with selling constraints

Moraga-González, José Luis; Watanabe, Makoto - 2023

This paper studies how selling constraints, which refer to the inability of firms to attend to all the buyers who want to inspect their products, affect the equilibrium price and social welfare. We show that the price that maximizes social welfare is greater than the marginal cost. This is...

Persistent link: https://www.econbiz.de/10014320135

Pricing on the Internet

Daripa, Arupratan; Kapur, Sandeep - 2015

It is often claimed that e-commerce has created a more competitive environment by encouraging the entry of new online firms and by enabling buyers to search easily for the lowest prices. The limited evidence that exists paints a mixed picture. Many online markets are advertising- and...

Persistent link: https://www.econbiz.de/10014075512

Price Dispersion, Competition, and Efficiency : Evidence from Chicago Based Routes

Kutlu, Levent - 2017

In this study we analyze the determinants of airline price dispersion. We particularly concentrate on the conduct and marginal cost efficiency. The effect of conduct on price dispersion seems to depend on the characteristics of the market. For the big city routes, we observe positive effect; and...

Persistent link: https://www.econbiz.de/10012971687

Estimating Firm-Level Demand at a Price Comparison Site : Accounting for Shoppers and the Number of Competitors

Baye, Michael R.; Morgan, John; Gatti, Rupert; … - 2014

Clearinghouse models of online pricing - such as Varian (1980), Rosenthal (1980), Narasimhan (1988), and Baye-Morgan (2001) - view a price comparison site as an "information clearing-house" where shoppers and loyals obtain price and product information to make online purchases. These models...

Persistent link: https://www.econbiz.de/10014028416

Entry and Quality Competition in Hotelling Model with Exogenous Prices

Kim, Sung Hyun - 2013

We examine a variant of Hotelling model where prices and locations are fixed but quality is a choice variable. We show that when sellers of a horizontally differentiated product are price-constrained and compete in quality, entry can lead to degradation of quality offered in equilibrium and...

Persistent link: https://www.econbiz.de/10013083711

The Utility Competition, Price Competition and Quantity Competition

Chen, Linfeng - 2019

We propose a framework of utility competition (UC), and we provide the intuition why price competition (PC), quantity competition (QC) and UC differ, and prove it by using a nonlinear demand system. If the network externality is positive, then PC is the most efficient with the lowest equilibrium...

Persistent link: https://www.econbiz.de/10012894283