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A seller with commitment power sets prices over time. Risk-averse buyers arrive to the market and decide when to purchase. We obtain that the optimal price path is a "regular" price, with occasional episodes of sequential discounts that occur at random times. The optimal price path has the...
Persistent link: https://www.econbiz.de/10013365621
This paper studies dynamic price competition over two periods between two firms selling differentiated durable goods to two buyers who are privately informed about their types, but have valuations of the two goods dependent on the other buyer's type. The firms' pricing strategy in period 1 must...
Persistent link: https://www.econbiz.de/10011421507
We propose an equilibrium model of duopolistic dynamic pricing in which a buyer alternates between two sellers for price offers over a finite time horizon. The game ends when the buyer accepts a price offer or the selling season is over, whichever comes first. Previous research (Granot et al.,...
Persistent link: https://www.econbiz.de/10011049745
This paper studies dynamic price competition over two periods between two firms selling differentiated durable goods to two buyers who are privately informed about their types, but have valuations of the two goods dependent on the other buyer's type. The firms' pricing strategy in period 1 must...
Persistent link: https://www.econbiz.de/10010381472
We experimentally investigate the strategic interaction between a product expert and a consumer. The expert privately chooses a ranking methodology to rank two products with uncertain relative merits; the consumer decides whether to acquire the resulting ranking report to guide her product...
Persistent link: https://www.econbiz.de/10013238861
How should a seller optimally sell his good to a buyer whose willingness to pay depends on his privately-known taste and on product characteristics privately known by the seller? The optimum is characterized by a mediated selling protocol and is sometimes implementable by bilateral face-to-face...
Persistent link: https://www.econbiz.de/10013051033
portfolios to investors. We extend the signaling model for single sales of risky assets to portfolio sales. We identify … have better information about loan types on their books, and some commitment power to sales, can profit by pooling assets …
Persistent link: https://www.econbiz.de/10012960474
promote communication that facilitates supplier accuracy in sales forecasts. We first document that suppliers provide more … connections to the major customer’s marketing executives positively affect supplier’s sales forecast accuracy. The positive effect … improves supplier sales forecast accuracy and (3) how suppliers shape their executive hiring strategies to benefit from …
Persistent link: https://www.econbiz.de/10013403990
For the past century, electric utilities and grid operators have both owned and operated resources to maintain the reliability of the grid. This reliability has been controlled through investments in generation, transmission, and distribution assets. Today, a growing number of previously passive...
Persistent link: https://www.econbiz.de/10014035774
Given adverse selection, durable goods that trade infrequently depreciate quickly. Consistent with this prediction I find an inverse relationship between depreciation and trading volume for less reliable brands of used business aircraft. Additionally, recent theoretical analyses suggest that...
Persistent link: https://www.econbiz.de/10014031020