Under perfect competition, price discrimination is not possible. This is because there is a very large number of a firm producing the same produce. The moment a firm charges a differential price, it would set forces into operation which will restore the same price. In fact under competitive ...
(2011). Endogenous capacities and price competition: The role of demand uncertainty. International Journal of Industrial Organization, 29, 399-411.de Frutos, M.A. and N. Fabra (2007) "Endogenous Capacities and Price Competition: The Role of Demand Uncertainty", CEPR Discussion Paper No. 6096...
We study the link between competition and price discrimination by examining the decision to offer each of the possible selects. Under this approach, the decision we analyze is not the decision to offer one or more selects relative to offering none.Footnote 3 Rather, regardless of what other se...
We consider a model of price competition among multiple sellers with asymmetric infor- mation. Information asymmetry is two-sided; each seller has perfect information of his own good, and the buyer has a private signal of the quality of the goods. Each seller chooses a price and makes a take...
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smaller firms taken together have a smaller share in the total market demand. Thus, the dominant firm is in a position to influence the market price by changing its own supply. To avoid competition with this firm, other firms have no alternative but to accept the price set by the dominant...
“fair competition.”…Price controls don’t work. Never have, never will. But we keep instituting them. Try finding a cheap apartment in rent-controlled New York City. …Sen. Elizabeth Warren, a leader among our economic illiterate, noted in February that high prices are caused in part ...
The focus of this theoretical study is price competition when some firms operate their own branded website while others sell their products through an online platform, such as Amazon Marketplace. On one hand, selling through Amazon expands a firm's reach to more customers, but on the other ...
Price sensitivity places a premium on understanding the competition, the buying process, and the uniqueness of products or services in the marketplace. For example, consumers have lower price sensitivity if a product or service is unique or has few substitutes. ...
摘要: We introduce product differentiation into the analysis of price competition in markets where suppliers test customers in order to assess whether they will pay for received goods or services. We find that, if the degree of differentiation is sufficiently high, suppliers may...