Similar Search Results

Sales and collusion in a market with storage

Nava, Francesco - London School of Economics (LSE) - 2006

Sales are a widespread and well-known phenomenon that has been documented in several product markets. Regularities in such periodic price reductions appear to suggest that the phenomenon cannot be entirely attributed to random variations in supply, demand, or the aggregate price level. Certain...

Persistent link: https://www.econbiz.de/10010884541

Sales and collusion in a market with storage

Nava, Francesco; Schiraldi, Pasquale - London School of Economics (LSE) - 2013

Sales are a widespread and well-known phenomenon documented in several product markets. This paper presents a novel rationale for sales that does not rely on consumer heterogeneity, or on any form of randomness to explain such periodic price fluctuations. The analysis is carried out in the...

Persistent link: https://www.econbiz.de/10011071258

Advertising and endogenous exit in a differentiated duopoly

Mantovani, Andrea; Mion, Giordano - London School of Economics (LSE) - 2006

In this paper we consider a two-stage duopoly game where firms first decide whether to invest in advertising and then … compete in prices. Advertising has two effects: a market enlargement for both firms and a predatory gain for the investing … investment in advertising and that strong product substitutability may induce a coordination problem. …

Persistent link: https://www.econbiz.de/10011071103

Video killed the radio star? Online music videos and digital music sales

Kretschmer, Tobias; Peukert, Christian - London School of Economics (LSE) - 2014

Sampling poses an interesting problem in markets with experience goods. Free samples reveal product quality and help consumers to make informed purchase decisions (promotional effect). However, sampling may also induce consumers to substitute purchases with free consumption (displacement...

Persistent link: https://www.econbiz.de/10011126443

Equilibrium bids in sponsored search auctions: theory and evidence

Borgers, Tilman; Cox, Ingemar; Pesendorfer, Martin; … - London School of Economics (LSE) - 2013

This paper presents a game theoretic analysis of the generalized second-price auction that the company Overture operated in 2004 to sell sponsored search listings on search engines. We construct a model that embodies few prior assumptions about parameters, and we present results that indicate...

Persistent link: https://www.econbiz.de/10011126718

Digital goods and the new economy

Quah, Danny - London School of Economics (LSE) - 2003

Digital goods are bitstrings, sequences of 0s and 1s, which have economic value. They are distinguished from other goods by five characteristics: digital goods are nonrival, infinitely expansible, discrete, aspatial, and recombinant. The New Economy is one where the economics of digital goods...

Persistent link: https://www.econbiz.de/10010746188

Strategic investment, industry concentration and the cross section of returns

Bustamante, Maria Cecilia - London School of Economics (LSE) - 2011

This paper provides an alternative real options framework to assess how firms' strategic interaction under imperfect competition a¤ects the industrial dynamics of investment, concentration, and expected returns. When firms have similar production technologies, the cross sectional variation in...

Persistent link: https://www.econbiz.de/10011071300

Investment, R&D and financial constraints in Britain and Germany

Bond, Stephen; Harhoff, Dietmar; Van Reenen, John - London School of Economics (LSE) - 2003

This paper tests for the importance of cash flow on investment in fixed capital and R&D using firm-level panel data in two countries between 1985 and 1994. For German firms, cash flow is not informative in simple econometric models of fixed investment or R&D. In identical specifications for...

Persistent link: https://www.econbiz.de/10010884496

Follower payoffs in symmetric duopoly games

von Stengel, Bernhard - London School of Economics (LSE) - 2010

This paper compares the leader and follower payoff in a duopoly game, as they arise in sequential play, with the Nash payoff in simultaneous play. If the game is symmetric, has a unique symmetric Nash equilibrium, and players' payoffs are monotonic in the opponent's choice along their own best...

Persistent link: https://www.econbiz.de/10010744848

Limit theorems for estimating the parameters of differentiated product demand systems

Berry, Steve; Linton, Oliver; Pakes, Ariel - London School of Economics (LSE) - 2000

We provide an asymptotic distribution theory for a class of Generalized Method of Moments estimators that arise in the study of differentiated product markets when the number of observations is associated with the number of products within a given market. We allow for three sources of error: the...

Persistent link: https://www.econbiz.de/10010745114