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Author: Rupert Gatti
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
This paper develops a model of multi-commodity search, where a continuum of identical consumers search optimally (sequentially) and with strictly positive search costs for two types of commodities. A continuum of homogenous firms, having the same, constant, marginal costs, select and post prices for either one of the commodities types. It is shown that any equilibrium in this model will display price dispersion, with no two firms charging the same price with positive probability. A specific equilibrium is identified, and comparative statics conducted - showing that the equilibrium distribution of prices converges to the competitive price as the cost of search converges to zero. These results are generated without the need for any heterogeneity amongst agents, or sub-optimal search strategies, required for price dispersion in existing models, and suggest that Diamond's (1971) 'monopoly price paradox' is an artefact of his single-commodity search assumption. A further extension shows that, in the search equilibrium identified, homogeneous firms may optimally choose to adopt differing production techniques for a homogeneous commodity, and that multiple equilibria with differing levels of technological adoption may also result. The results highlight the importance the process of search may have, not only on prices, but also on the structure and the efficiency of the market in general.
Author: Rupert Gatti
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
This paper develops a model of multi-commodity search, where a continuum of identical consumers search optimally (sequentially) and with strictly positive search costs for two types of commodities. A continuum of homogenous firms, having the same, constant, marginal costs, select and post prices for either one of the commodities types. It is shown that any equilibrium in this model will display price dispersion, with no two firms charging the same price with positive probability. A specific equilibrium is identified, and comparative statics conducted - showing that the equilibrium distribution of prices converges to the competitive price as the cost of search converges to zero. These results are generated without the need for any heterogeneity amongst agents, or sub-optimal search strategies, required for price dispersion in existing models, and suggest that Diamond's (1971) 'monopoly price paradox' is an artefact of his single-commodity search assumption. A further extension shows that, in the search equilibrium identified, homogeneous firms may optimally choose to adopt differing production techniques for a homogeneous commodity, and that multiple equilibria with differing levels of technological adoption may also result. The results highlight the importance the process of search may have, not only on prices, but also on the structure and the efficiency of the market in general.
Author: Brian McCall
Publisher: Routledge
ISBN: 1134422342
Category : Business & Economics
Languages : en
Pages : 727
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Book Description
The economics of search is a prominent component of economic theory, and it has a richness and elegance that underpins a host of practical applications. In this book Brian and John McCall present a comprehensive overview of the economic theory of search, from the classical model of job search formulated 40 years ago to the recent developments in eq
Author: Peter Von zur Muehlen
Publisher:
ISBN:
Category : Competition
Languages : en
Pages : 42
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Book Description
Author: Joseph E. Stiglitz
Publisher: Oxford University Press
ISBN: 0199533717
Category : Business & Economics
Languages : en
Pages : 904
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Book Description
The second in a series of six volumes containing a selection of Joseph Stiglitz's most important and widely cited work. Volume I set out the basic concepts underlying the economics of information. Volume II extends these concepts and applies them to a number of different settings in labour, capital, and product markets
Author: Ali Hortaçsu
Publisher: Princeton University Press
ISBN: 0691243468
Category : Business & Economics
Languages : en
Pages : 280
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Book Description
"Within economics a relatively new way of modeling has dominated important subfields: structural modeling. The goal of this book is to give an overview on how the various streams of literatures in empirical industrial organization and quantitative marketing use structural econometric modeling to estimate the model parameters, give the economic-model-based predictions, and conduct the policy counterfactual experiments. The traditional way of modelling, called "reduced-form" builds its models from simple relationships between variables of interests, which are mostly linear. Structural econometric models start by specifying the structure of the economic model, and the variables are calibrated from real-world data. This method enables better predictions and policy counterfactuals, and has other benefits. When considering a hypothetical policy change using the traditional modeling method ("reduced form"), researchers can often only estimate whether an effect would be positive or negative. With a structural econometric model using real-world data, a researcher can obtain the magnitude of the effects resulting from a hypothetical change. But the ability of quantifying the effects associated with a hypothetical policy change comes with its costs: the nonlinearity from explicitly specifying the possible relationships makes the structural econometric approach generally much more difficult to implement than its reduced-form counterpart. Therefore this book will provide a much-needed resource on how to use these methods effectively in the fields in which they been used the most, empirical industrial organization and quantitative marketing"--
Author:
Publisher: Elsevier
ISBN: 0323915140
Category : Business & Economics
Languages : en
Pages : 788
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Book Description
Handbook of Industrial Organization, Volume Four highlights new advances in the field, with this new volume presenting interesting chapters written by an international board of expert authors. Presents authoritative surveys and reviews of advances in theory and econometrics Reviews recent research on capital raising methods and institutions Includes discussions on developing countries
Author: Paul Belleflamme
Publisher: Cambridge University Press
ISBN: 1316299449
Category : Business & Economics
Languages : en
Pages : 827
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Book Description
Thoroughly revised according to classroom feedback, Industrial Organization: Markets and Strategies offers an up-to-date and rigorous presentation of modern industrial organization that blends theory with real-world applications and derives implications for firm strategy and competition policy. This comprehensive textbook acquaints readers with the most important models for understanding strategies chosen by firms with market power and shows how such firms adapt to different market environments. The second edition includes new and revised formal models and case studies. Formal models are presented in detail, and analyses are summarized in 'lessons' which highlight the main insights. Theories are complemented by numerous real-world cases that engage students and lead them to connect theories to real situations. Chapters include review questions, exercises, and suggestions for further reading to enhance the learning experience, and an accompanying website offers additional student exercises, as well as teaching slides.
Author: J.K. Sengupta
Publisher: Springer Science & Business Media
ISBN: 3642701639
Category : Business & Economics
Languages : en
Pages : 295
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Book Description
Understanding the stochastic enviornment is as much important to the manager as to the economist. From production and marketing to financial management, a manager has to assess various costs imposed by uncertainty. The economist analyzes the role of incomplete and too often imperfect information structures on the optimal decisions made by a firm. The need for understanding the role of uncertainty in quantitative decision models, both in economics and management science provide the basic motivation of this monograph. The stochastic environment is analyzed here in terms of the following specific models of optimization: linear and quadratic models, linear programming, control theory and dynamic programming. Uncertainty is introduced here through the para meters, the constraints, and the objective function and its impact evaluated. Specifically recent developments in applied research are emphasized, so that they can help the decision-maker arrive at a solution which has some desirable charac teristics like robustness, stability and cautiousness. Mathematical treatment is kept at a fairly elementary level and applied as pects are emphasized much more than theory. Moreover, an attempt is made to in corporate the economic theory of uncertainty into the stochastic theory of opera tions research. Methods of optimal decision rules illustrated he re are applicable in three broad areas: (a) applied economic models in resource allocation and economic planning, (b) operations research models involving portfolio analysis and stochastic linear programming and (c) systems science models in stochastic control and adaptive behavior.
Author: Luis C. Corchón
Publisher: Edward Elgar Publishing
ISBN: 1788112784
Category : Business & Economics
Languages : en
Pages : 547
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Book Description
This second volume of the Handbook includes original contribution by experts in the field. It provides up-to-date surveys of the most relevant applications of game theory to industrial organization. The book covers both classical as well as new IO topics such as mergers in markets with homogeneous and differentiated goods, leniency and coordinated effects in cartels and mergers, static and dynamic contests, consumer search and product safety, strategic delegation, platforms and network effects, auctions, environmental and resource economics, intellectual property, healthcare, corruption, experimental industrial organization and empirical models of R&D.
Author: Rulon D. Pope
Publisher:
ISBN:
Category : Consumer education
Languages : en
Pages : 160
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Book Description
