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Author: Abhimanyu Khan
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
We study the market outcome that evolves in the long-run when price-setting firms, that compete in a differentiated market, are driven by an imitation dynamic. We find that the prices that can evolve in the long-run depend on the level of market differentiation and on the degree of oversight firms have on market decisions and outcomes. The unique symmetric pure Nash equilibrium price is always supported in the long-run, and it is the unique long-run market outcome for high and low levels of differentiation, when there is no oversight or even with limited oversight on market decisions and outcomes. For intermediate levels of differentiation, in addition to the Nash equilibrium price, there is a set of prices that may emerge in the long-run while these other prices are below Nash equilibrium price when there is almost no oversight on market performances, they are above Nash equilibrium price when the oversight on market performances is more acute.
Author: Abhimanyu Khan
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
We study the market outcome that evolves in the long-run when price-setting firms, that compete in a differentiated market, are driven by an imitation dynamic. We find that the prices that can evolve in the long-run depend on the level of market differentiation and on the degree of oversight firms have on market decisions and outcomes. The unique symmetric pure Nash equilibrium price is always supported in the long-run, and it is the unique long-run market outcome for high and low levels of differentiation, when there is no oversight or even with limited oversight on market decisions and outcomes. For intermediate levels of differentiation, in addition to the Nash equilibrium price, there is a set of prices that may emerge in the long-run while these other prices are below Nash equilibrium price when there is almost no oversight on market performances, they are above Nash equilibrium price when the oversight on market performances is more acute.
Author: Abhimanyu Khan
Publisher:
ISBN:
Category :
Languages : en
Pages : 28
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Book Description
Author: Eugen Kováč
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
The competition between firms from developed (DC) and less developed countries (LDC) is typically in vertically differentiated products. We consider a model of price competition between DC and LDC firms with quality choice and imitation, and study the effects of ex post tariffs. The government faces a choice between commitment to free trade and imposing a tariff. Tariffs can lead to change in the rank of qualities compared to free trade. We identify conditions under which this quality reversal takes place, and show that quality reversal is necessary for trade policy to be superior to free trade in welfare terms.
Author: John Beath
Publisher: Cambridge University Press
ISBN: 9780521335522
Category : Business & Economics
Languages : en
Pages : 220
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Book Description
There are few industries in modern market economies that do not manufacture differentiated products. This book provides a systematic explanation and analysis of the widespread prevalence of this important category of products. The authors concentrate on models in which product selection is endogenous. In the first four chapters they consider models that try to predict the level of product differentiation that would emerge in situations of market equilibrium. These market equilibria with differentiated products are characterised and then compared with social welfare optima. Particular attention is paid to the distinction between horizontal and vertical differentiation as well as to the related issues of product quality and durability. This book brings together the most important theoretical contributions to these topics in a succinct and coherent manner. One of its major strengths is the way in which it carefully sets out the basic intuition behind the formal results. It will be useful to advanced undergraduate and graduate students taking courses in industrial economics and microeconomic theory.
Author: Simon P. Anderson
Publisher: MIT Press
ISBN: 9780262011280
Category : Business & Economics
Languages : en
Pages : 454
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Book Description
"The discrete choice approach provides an ideal framework for describing the demands for differentiated products and can be used for studying most product differentiation models in the literature. By introducing extra dimensions of product heterogeneity, the framework also provides richer models of firm location and product selection."--BOOK JACKET.
Author: Marco Di Cintio
Publisher:
ISBN:
Category :
Languages : en
Pages : 14
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Book Description
This paper investigates on price competition in the Hotelling location model with linear transportation costs when consumer preferences are affected by the number of consumers shopping at the same store. A consumption externality permits to consider the imitation and the congestion effects which are opposite forces at work.The coexistence of both effects confers new validity to the principle of minimum differentiation as it was in the original Hotelling model. I show that firms do not need to set apart in order to earn higher profits. The results show firms endogenously choose to locate in the center of the interval sharing the market with positive prices.
Author: BPP Learning Media
Publisher: BPP Learning Media
ISBN: 1445392895
Category : Business & Economics
Languages : en
Pages : 545
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Book Description
Suitable for: exams in 2012 and 2013The TOPCIMA Study Text is an excellent place to begin preparing for the TOPCIMA Case Study exam. This workbook contains exercises and analysis from previous exam papers, questions put to examiners, CIMA's assessment methodology and previous case study examples to help you understand how to approach the exam questions.The key to passing the exam is preparation and practise. Work through the questions in the Study Text to begin preparing before CIMA issues the pre-seen data and then practice detailed questions based on the pre-seen data in the TOPCIMA Express Kit.
Author: BPP Learning Media
Publisher: BPP Learning Media
ISBN: 1472720466
Category : Business & Economics
Languages : en
Pages : 767
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Book Description
BPP Learning Media provides comprehensive materials that highlight the areas to focus on for your exams and complement the syllabus to increase your understanding.
Author: R. Preston McAfee
Publisher: Princeton University Press
ISBN: 1400828538
Category : Business & Economics
Languages : en
Pages : 425
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Book Description
Competitive Solutions is an entertaining and wideranging introduction to successful business methods applied to a variety of real-world situations. Rejecting the one-size-fits-all premise that underlies so many guides to business strategy, Preston McAfee develops the intellectual tools and insights needed to confront many marketplace problems. Drawing on his broad experience as a consultant for major U.S. companies, as well as extensive research, McAfee emphasizes cooperation, pricing, litigation, and antitrust as vital to a firm's competitive posture--and focuses more attention on these elements than do most business strategy accounts. McAfee begins by considering strategy as successfully applied by America OnLine, an example that introduces many of the tools discussed in greater depth throughout the book. From here he moves to industry analysis: By examining the context for developing a strategy, he points out uses of positioning and differentiation that enable a firm to weaken price competition and deter rivals from stealing customers. McAfee's exploration of a product's life cycle proves an invaluable guide to positioning new technology in order to maximize the potential for future customers. In the centerpiece of the book, McAfee lays out a how-to manual for cooperation, providing tactics crucial for setting standards, lobbying the government, and fostering industry growth. Writing in a conversational manner, McAfee also addresses such deep topics as organizational design and employee compensation and incentives. More detailed discussions examine antitrust enforcement, which is an increasingly important constraint on strategy, as well as strategies for pricing, bidding, signaling, and bargaining. This book is a fascinating examination of modern business strategy and its application in many different settings. Students of business and economics--as well as executives and managers--will recognize Competitive Solutions as an indispensable resource as well as a definitive vision of the strategic firm: one in which each element of company strategy reinforces the other elements.
Author: Moriki Hosoe
Publisher: Springer
ISBN: 9811370362
Category : Business & Economics
Languages : en
Pages : 378
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Book Description
An important feature of this book is its analysis of various contemporary issues in applied economics, distinguished by advanced theoretical research and empirical analysis focusing on Japan and Korea. The book consists of four parts, the first of which investigates economic growth and welfare, using tools of applied analysis. In Part II, it examines inequality, redistribution, and intergenerational transfers, mainly on an empirical basis. In turn, Part III explores public policy and political economics, while Part IV addresses resource and environmental economics on the basis of data from Japan and Korea. In addition to offering valuable insights, this collection of papers commemorates the 10th anniversary of academic exchange between the Japan Association for Applied Economics (JAAE) and the Korean Association for Applied Economics (KAAE).
