Competition in Posted Prices with Stochastic Discounts

• 成果类型: Article
• 署名作者: Gill, David; Thanassoulis, John
• 署名单位: University of Oxford; University of Warwick; University of Oxford; University of Oxford
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/ecoj.12294
• 发表日期: 2016
• 页码: 1528-1570
• 关键词: multimarket contact; brand choice; MARKETS; MODEL; DISCRIMINATION; bargainers; collusion; takers; IMPACT

摘要

We study price competition between firms over public list or posted prices when a fraction of consumers can subsequently receive discounts with some probability. Such stochastic discounts are a feature of markets in which some consumers bargain explicitly and of markets in which sellers use the marketing practice of couponing. Even though bargainers receive reductions off the posted prices, the potential to discount dampens competitive pressure in the market, thus raising all prices and increasing profits. Welfare falls because of the stochastic nature of the discounts, which generates some misallocation of products to consumers. Stochastic discounts facilitate collusion by reducing the market share that can be gained from a deviation.