Market Maker Price Discrimination PDF Download
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Author: Walter Hugo Prahl
Publisher:
ISBN:
Category :
Languages : en
Pages : 316
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Author: Walter Hugo Prahl
Publisher:
ISBN:
Category :
Languages : en
Pages : 316
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Book Description
Author: Stefan Reitz
Publisher:
ISBN:
Category :
Languages : en
Pages : 36
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Book Description
Though unambiguously outperforming all other financial markets in terms of liquidity, foreign exchange trading is still performed in opaque and decentralized markets. In particular, the two-tier market structure consisting of a customer segment and an interdealer segment to which only market makers have access gives rise to the possibility of price discrimination. We provide a theoretical foreign exchange pricing model that accounts for market power considerations and analyze a database of the trades of a German market maker and his cross section of end-user customers. We find that the market maker generally exerts low bargaining power vis-á-vis his customers. The dealer earns lower average spreads on trades with financial customers than commercial customers, even though the former are perceived to convey exchange-rate-relevant information. From this perspective, it appears that market makers provide interdealer market liquidity to end-user customers with cross-sectionally differing spreads.
Author: Jürgen Dennert
Publisher:
ISBN:
Category : Finance
Languages : en
Pages : 27
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Author: Fouad Sabry
Publisher: One Billion Knowledgeable
ISBN:
Category : Business & Economics
Languages : en
Pages : 374
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Book Description
What is Price Discrimination Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are sold at different prices by the same provider in different market segments. Price discrimination is distinguished from product differentiation by the more substantial difference in production cost for the differently priced products involved in the latter strategy. Price differentiation essentially relies on the variation in the customers' willingness to pay and in the elasticity of their demand. For price discrimination to succeed, a firm must have market power, such as a dominant market share, product uniqueness, sole pricing power, etc. All prices under price discrimination are higher than the equilibrium price in a perfectly competitive market. However, some prices under price discrimination may be lower than the price charged by a single-price monopolist. Price discrimination is utilized by the monopolist to recapture some deadweight loss. This Pricing strategy enables firms to capture additional consumer surplus and maximize their profits while benefiting some consumers at lower prices. Price discrimination can take many forms and is prevalent in many industries, from education and telecommunications to healthcare. How you will benefit (I) Insights, and validations about the following topics: Chapter 1: Price discrimination Chapter 2: Monopoly Chapter 3: Monopolistic competition Chapter 4: Oligopoly Chapter 5: Perfect competition Chapter 6: Imperfect competition Chapter 7: Deadweight loss Chapter 8: Two-part tariff Chapter 9: Pricing Chapter 10: Barriers to entry Chapter 11: Yield management Chapter 12: Market power Chapter 13: Non-price competition Chapter 14: Market structure Chapter 15: Pricing strategies Chapter 16: Dynamic pricing Chapter 17: Revenue management Chapter 18: Value-based pricing Chapter 19: Rental value Chapter 20: Profit (economics) Chapter 21: Monopoly price (II) Answering the public top questions about price discrimination. (III) Real world examples for the usage of price discrimination in many fields. Who this book is for Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of Price Discrimination.
Author: Ian Lindsay Gale
Publisher:
ISBN:
Category :
Languages : en
Pages : 40
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Book Description
Author: Nazmiye Asli Aşçioğlu
Publisher:
ISBN:
Category :
Languages : en
Pages : 222
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Author: Jürgen Dennert
Publisher:
ISBN:
Category :
Languages : de
Pages :
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Author: Peter Scott
Publisher: Oxford University Press
ISBN: 0191086355
Category : History
Languages : en
Pages : 385
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Book Description
During the twentieth century 'affluence' (both at the level of the individual household and that of society as a whole) became intimately linked with access to a range of prestige consumer durables. The Market Makers charts the inter-war origins of a process that would eventually transform these features of modern life from being 'luxuries' to 'necessities' for most British families. Peter Scott examines how producers and retailers succeeded in creating 'mass' (though not universal) market for new suites of furniture, radios, modern housing, and some electrical and gas appliances, while also exploring why some other goods, such as refrigerators, telephones, and automobiles, failed to reach the mass market in Britain before the 1950s. Creating mass markets presented a formidable challenge for manufacturers and retailers. Consumer durables required large markets. Most involved significant research and development costs. Some, such as the telephone, radio, and car, were dependent on complementary investments in infrastructure. All required intensive marketing - usually including expensive advertising in national newspapers and magazines, while some also needed mass production methods (and output volumes) to make them affordable to a mass market. This study charts the pioneering efforts of entrepreneurs (many of whom, though once household names, are now largely forgotten) to provide consumer durables at a price affordable to a mass market and to persuade a sometimes reluctant public to embrace the new products and the consumer credit that their purchase required. In doing so, Scott shows that, contrary to much received wisdom, there was a 'consumer durables revolution' in inter-war Britain - at least for certain highly prioritised goods.
Author: Jiandong Ju
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
We develop a microstructure model of a market for a homogeneous good in which trade amongst heterogeneous consumers and producers is intermediated by middlemen and oligopolistic market makers (gatekeepers). Market makers post bid and ask prices which are freely observable. Middlemen stand ready to trade at bid and ask prices they quote on a private basis to consumers or producers who identify these intermediaries via a costly search process. We model competition between market makers as a two-stage game: capacity setting in the first stage and bid and ask price setting in the second stage. We characterize the equilibrium market structure of intermediaries and the distribution of prices in equilibrium. Our main focus is the effect on prices that emerges following a change in the market structure of intermediation, specifically through the exit of a market maker. Exit of a market maker initially results in a shift of trade from market makers as a whole to middlemen resulting in an increase in price dispersion. Following transition to the new market structure with fewer market makers, price dispersion returns to its pre-exit level when total trade passing through the remaining market makers is roughly equal to the pre-exit level. We present an empirical study of price dispersion in the North American natural gas market for the period before and following the exit of Enron, a major market maker in late 2001. The empirical evidence supports the main propositions of our theory: price dispersion jumped 4-fold immediately following Enron's exit but returned to its pre-exit level within roughly 2 months following the exit date.
Author: Hau Harald
Publisher: International Monetary Fund
ISBN: 1498303773
Category : Business & Economics
Languages : en
Pages : 45
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Book Description
New regulatory data reveal extensive price discrimination against non-financial clients in the FX derivatives market. The client at the 90th percentile pays an effective spread of 0.5%, while the bottom quarter incur transaction costs of less than 0.02%. Consistent with models of search frictions in over-the-counter markets, dealers charge higher spreads to less sophisticated clients. However, price discrimination is eliminated when clients trade through multi-dealer request-for-quote platforms. We also document that dealers extract rents from captive clients and market opacity, but only for contracts negotiated bilaterally with unsophisticated clients.
