Market Dominance and Behavior-Based Pricing Under Horizontal and Vertical Differentiation PDF Download
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Author: Thomas Gehrig
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
We evaluate behavior-based price discrimination from an antitrust perspective by focusing on an industry with inherited market dominance. Under horizontal differentiation behavior-based pricing does not by itself lead to persistence of dominance unless the dominant firm is protected by significantly higher switching costs than its small rival. This result continues to hold even if the dominant firm can use behavior-based pricing to compete against an entrant with no access to consumers' purchase histories. Under vertical differentiation behavior-based pricing enhances the dominance of the high-quality seller and, hence, consumer welfare.
Author: Thomas Gehrig
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
We evaluate behavior-based price discrimination from an antitrust perspective by focusing on an industry with inherited market dominance. Under horizontal differentiation behavior-based pricing does not by itself lead to persistence of dominance unless the dominant firm is protected by significantly higher switching costs than its small rival. This result continues to hold even if the dominant firm can use behavior-based pricing to compete against an entrant with no access to consumers' purchase histories. Under vertical differentiation behavior-based pricing enhances the dominance of the high-quality seller and, hence, consumer welfare.
Author: Thomas Gehrig
Publisher:
ISBN:
Category : Market share
Languages : en
Pages : 0
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Book Description
Author: Paolo G. Garella
Publisher:
ISBN:
Category :
Languages : en
Pages : 25
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Book Description
We study price personalization in a two period duopoly with vertically differentiated products. In the second period a firm knows the purchase history of all customers, as in the standard Behavior Based Price Discrimination models. However in the second period it also has detailed personal information on its own customers, enabling it to quote personalized prices. The analysis reveals that there exists a natural market (nm) for each firm, defined as the set of customers that cannot be poached by the rival in period two. Since in equilibrium all contestable consumers belong to the largest nm, poaching will only be one way. The firm with the largest nm, has highest profits, but not necessarily the largest market share. All consumers gain from price personalization..Profits are lower than under uniform pricing. Quality choice is well defined for the low quality and a quality dfferential arises, though the exact choice for the high quality depends upon the cost specification.
Author: Yingdan Zhang
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
With behavior-based pricing (BBP), retailers use customers' purchase records to price discriminate between new and past customers. In this paper, we investigate BBP in a setting where sales channels have different purchasing convenience, indicating that channels are asymmetric. We examine how the adoption of BBP affects retailers' profits, and how purchasing convenience, measured by the hassle cost in our model, affects retailers' pricing decisions. To address these questions, we build up a three-period model in which two competing retailers with different hassle costs independently decide whether to adopt BBP, and sell repeatedly purchased products to strategic customers. By comparing retailers' profits in different cases with different retailers adopting BBP, we find specific conditions under which BBP can be profitable. In particular, the retailer with the higher hassle cost are more likely to benefit from the adoption of BBP. Therefore, contrary to intuition, retailers with high hassle costs do not always need to work on improving convenience when adopting BBP. Also we find that retailers make the same decision on whether to adopt BBP in equilibrium, and their decision depends on the hassle cost gap between the two channels. Our findings provide guidance for retailers with different channel convenience on how to use BBP and respond to consumers' strategic behavior in a competitive setting.
Author: Robert Bork
Publisher:
ISBN: 9781736089712
Category :
Languages : en
Pages : 536
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Book Description
The most important book on antitrust ever written. It shows how antitrust suits adversely affect the consumer by encouraging a costly form of protection for inefficient and uncompetitive small businesses.
Author: Bibliothèque centrale (Fonds Quetelet)
Publisher:
ISBN:
Category :
Languages : en
Pages : 1008
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Book Description
Author: Daniel Gore
Publisher: Cambridge University Press
ISBN: 1107007720
Category : Business & Economics
Languages : en
Pages : 559
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Book Description
Provides a clear, concise and practical overview of the key economic techniques and evidence employed in European merger control.
Author: Henry Mintzberg
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Synthesizes the empirical literature on organizationalstructuring to answer the question of how organizations structure themselves --how they resolve needed coordination and division of labor. Organizationalstructuring is defined as the sum total of the ways in which an organizationdivides and coordinates its labor into distinct tasks. Further analysis of theresearch literature is neededin order to builda conceptualframework that will fill in the significant gap left by not connecting adescription of structure to its context: how an organization actuallyfunctions. The results of the synthesis are five basic configurations (the SimpleStructure, the Machine Bureaucracy, the Professional Bureaucracy, theDivisionalized Form, and the Adhocracy) that serve as the fundamental elementsof structure in an organization. Five basic parts of the contemporaryorganization (the operating core, the strategic apex, the middle line, thetechnostructure, and the support staff), and five theories of how it functions(i.e., as a system characterized by formal authority, regulated flows, informalcommunication, work constellations, and ad hoc decision processes) aretheorized. Organizations function in complex and varying ways, due to differing flows -including flows of authority, work material, information, and decisionprocesses. These flows depend on the age, size, and environment of theorganization; additionally, technology plays a key role because of itsimportance in structuring the operating core. Finally, design parameters aredescribed - based on the above five basic parts and five theories - that areused as a means of coordination and division of labor in designingorganizational structures, in order to establish stable patterns of behavior.(CJC).
Author: Richard Schmalensee
Publisher: North Holland
ISBN:
Category : Business & Economics
Languages : en
Pages : 1002
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Book Description
Determinants of firm and market organization; Analysis of market behavior; Empirical methods and results; International issues and comparision; government intervention in the Marketplace.
Author: Terrence Hendershott
Publisher: Elsevier Science Limited
ISBN: 9780444517715
Category : Business & Economics
Languages : en
Pages : 692
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Book Description
Contains chapters that focus on the individual interrelated subjects regarding the economics of information systems: the adoption and diffusion of information technologies; the pricing of data communications; the means and tactics firms us to compete with each other; and the manner in which firms interact with and distribute goods to customers.
