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Author: Tommy Andersson
Publisher:
ISBN:
Category : Nonlinear functional analysis
Languages : en
Pages : 127
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Author: Tommy Andersson
Publisher:
ISBN:
Category : Nonlinear functional analysis
Languages : en
Pages : 127
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Author: Garrett Patrick Hagemann
Publisher:
ISBN:
Category :
Languages : en
Pages : 222
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This dissertation addresses several open issues in the economics surrounding the use of nonlinear pricing. The first chapter empirically examines the impact of the use of nonlinear pricing by wholesalers. The second chapter evaluates how firm profit depends on the number of prices offered in a nonlinear price schedule. Finally, the third chapter investigates the use of all-unit discounts as a price discrimination instrument. The first chapter exploits a unique data set of price schedules to provide the first empirical estimate of the welfare impact of second degree price discrimination in a market with double marginalization. Theoretical predictions in such a context are ambiguous. Quantity discounts at the wholesale level reduce costs for larger retailers, increasing efficiency. However, quantity discounts raise input costs for smaller retailers, increasing prices consumers may pay. The combined welfare effects on consumers umers depends on how much of input cost discounts are passed through to consumers and the distribution of retailer size. I develop and estimate a model of the New York State retail liquor market where wholesalers offer a multi-part nonlinear tariff for each product. The structural model is then used to estimate the welfare impact of restricting wholesale pricing to be linear. I find that banning quantity discounts reduces total welfare by approximately 14% on average. Consumer surplus and wholesaler profit decline by approximately 26% on average. Average retailer profit increases by a similar magnitude, though effects for a particular retailer are heterogeneous across retailer size. The second chapter examines the shape of observed price schedules more directly. Sellers often offer price schedules with relatively few segments rather than completely nonlinear price schedules which offer a unique price for each unit sold. By not offering a completely nonlinear, sellers are foregoing some additional profit in favor of a simpler pricing strategy. I find that the scale of these foregone profits is relatively small and only loosely related to product characteristics. When considered in percentage terms, foregone profits are very similar across a large number of products. This suggests that simple pricing strategies obtain almost all the profits available and this is a common property of nonlinear pricing strategies. The final chapter compares price discrimination through two different quantity discount mechanisms: all-unit discounts and incremental discounts. All-unit-discounts give consumers a lower marginal price on all units purchased once total purchase size crosses a threshold. Incremental discounts only provide discounts on units above the threshold. Relative to incremental discounts, all-unit-discounts imply higher marginal prices and bunching of purchase sizes in equilibrium. The equilibrium bunching may present a challenge for estimating the model empirically.
Author: Jian Shen
Publisher:
ISBN:
Category :
Languages : en
Pages : 161
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Book Description
In my dissertation, I study how firms choose their pricing and quality investment in markets with imperfect competition. My dissertation comprises of three chapters. First, I study how firms compete in prices when consumers search sequentially. Second, I study firms' competitive nonlinear pricing strategies. Finally, I study how market structure affects firms' quality investment decisions.
Author: Daniel F. Spulber
Publisher:
ISBN:
Category :
Languages : en
Pages : 40
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Author:
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Author: Peter Clemens Reiss
Publisher:
ISBN:
Category : Consumer protection
Languages : en
Pages : 28
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Book Description
This paper examines how to evaluate consumer welfare when consumers face nonlinear prices. This problem arises in many settings, such as devising optimal pricing strategies for firms, assessing how price discrimination affects consumers, and evaluating the efficiency costs of many transfer programs in the public sector. We extend prior methods to accommodate a broad range of modern pricing practices, including menus of pricing plans. This analysis yields a simpler and more general technique for evaluating exact consumer surplus changes in settings where consumers face nonlinear prices. We illustrate our method using recent changes in mobile phone service plans.
Author:
Publisher:
ISBN:
Category : Dissertations, Academic
Languages : en
Pages : 396
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Author: Charlotte Edney
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Author: Abdelkrim Araar
Publisher: Springer
ISBN: 3030174239
Category : Business & Economics
Languages : en
Pages : 98
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Book Description
This book provides a general framework for the use of theoretical contributions in empirical works, addressing the question of what is the effect of a price change on household well-being. This simple question is one of the most relevant and controversial questions in microeconomic theory and one of the main sources of errors in empirical economics. In particular, this book aims to 1) Review the essential microeconomics literature since the first seminal papers by Hicks in the 1930s; 2) Organize and simplify this literature in a way that can be easily used by analysts with different backgrounds providing algebraic, geometric and computational illustrations; 3) identify and measure the essential differences across methods and test how these differences affect empirical results; 4) Provide guidelines for the use of alternative approaches under imperfect information on utility, demand systems, elasticities and more generally incomes and quantities; 5) Provide computational codes in Stata for the application of all methods. The focus of the book is on developing economies and the poor, and the assumptions made will relate primarily to these countries and group of people, presumably the main policy focus of international organizations and national governments.
Author: Raymond T. Bye
Publisher:
ISBN:
Category :
Languages : de
Pages : 356
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Book Description
