-
作者：Kim, Harim
作者单位：University of Connecticut
摘要：The energy transition from coal to gas is reshaping the power sector to rely more on gas generation, which is cleaner but has more variable input costs. Using counterfactual analysis, I study the competitive effects of this transition, by considering several transition paths that differ in the types of firms involved in retiring coal plants and investing in gas plants. I show that the variable nature of the marginal cost of gas generation creates an environment in which market power could incr...
-
作者：Motta, Massimo; Penta, Antonio
作者单位：ICREA; Pompeu Fabra University; Communaute d'universites et etablissements de Toulouse (Comue); Universite Toulouse 1 Capitole; Toulouse School of Economics
摘要：We study the market effects of sponsored search auctions for advertising space on searches for brands. In our model, firms simultaneously choose the price of their product and the bids for the advertising auctions triggered by their own and rivals' brand keywords search. In any symmetric equilibrium, each firm wins its own keyword auction, and relative to a no-ads benchmark, online advertising raises the winning brand's marginal cost and ultimately market prices. Only in an environment with st...
-
作者：Ryan, Conor
作者单位：Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
摘要：In the presence of adverse selection, mergers can increase welfare through a reduction in inefficient sorting. I characterize the sorting externality internalized between merging firms in a tractable discrete choice model. Mergers benefit consumers when the firms are small, willingness to pay is moderately increasing in cost, and consumer costs are skewed. Applying the model to the non-group health insurance market, 13% of potential mergers would improve consumer surplus. In markets where the ...
-
作者：Gil, Ricard; Houde, Jean-Francois; Sun, Shilong; Takahashi, Yuya
作者单位：University of Navarra; IESE Business School; University of Wisconsin System; University of Wisconsin Madison; University of Washington; University of Washington Seattle
摘要：This article studies entry preemption in new industries. We first test a key prediction of dynamic entry games: Entry preemption is most relevant in intermediate-sized markets, where firms face highest uncertainty about future entry. Using US drive-in theater market (1945-1957) data, we find robust evidence for this non-monotonic relationship between market size and early entry probability. We then estimate a dynamic entry game, and quantify preemption effects through counterfactual analysis. ...
-
作者：Houde, Sebastien
作者单位：University of Lausanne
摘要：A coarse certification provides simple but incomplete information. Its rationale is to help consumers trade off dimensions of quality that are complex and lack salience. In imperfectly competitive markets, it may induce excess bunching at the certification requirement, crowd out quality, and facilitate price discrimination. Who will ultimately benefit from a coarse certification thus depends on the degree of market power firms can exercise as well as on consumers' sophistication in responding ...
-
作者：Liu, Dongri; Lu, Jingfeng
作者单位：Shandong University; National University of Singapore
摘要：We adopt a dynamic mechanism design approach to study how a revenue-maximizing seller should sell an indivisible object when a buyer with a private value can search for an outside option with continuous-intensity choices. We find that lowering the buyer's search cost definitely reduces the seller's revenue when the buyer's search decision is binary, as in Armstrong and Zhou (2016). In contrast, with continuous search intensity, a counterintuitive effect may arise: lowering the buyer's search c...
-
作者：Beheshti, David; Neller, Seth
作者单位：University of Texas System; University of Texas at San Antonio; University of Tennessee System; University of Tennessee Knoxville; University of Tennessee System; University of Tennessee Knoxville
摘要：In this article, we examine the importance of individual physicians in explaining the significant variation in prescription drug spending in Medicare Part D. By tracking prescribing behavior before and after physician relocations, we find that movers' prescribing converges toward the average of their new location. However, this convergence is far from complete, highlighting the importance of idiosyncratic physician-specific factors. Overall, these physician-specific factors explain about 60 to...
-
作者：Darmouni, Olivier; Aberg, Simon Essig; Tolvanen, Juha
作者单位：Hautes Etudes Commerciales (HEC) Paris; University of Rome Tor Vergata
摘要：Firms in decentralized markets often trade using quantity contracts, agreements specifying quantity prior to the point of sale. These contracts are valuable because they provide quantity assurance, as trading frictions could prevent a buyer and seller from matching in the spot market. However, quantity contracts prevent sellers from optimally allocating production across buyers after market conditions realize. Using proprietary invoice data, we estimate a model of quantity contracts in the pul...
-
作者：Tan, Teck Yong
作者单位：University of Rochester
摘要：This article studies price discrimination by a seller who uses data on observables that buyers can control (or manipulate) at a cost. If the seller's discriminatory prices are offered covertly, equilibrium market segmentation is always coarse, resulting in limited price discrimination. In contrast, if prices must be transparently posted, every buyer pays a personalized price in equilibrium, though this does not always reduce buyer or social welfare. The analysis sheds new light on calls for tr...
-
作者：Li, Jing; Li, Shengyu; Zhang, Hongsong
作者单位：University of Hong Kong; University of New South Wales Sydney; University of New South Wales Sydney
摘要：Unobserved objective output quality complicates the analysis of firm productivity and demand because higher-quality products entail higher costs but offer greater consumption benefits. Using a panel of firms with output quality data, we decompose quantity-based productivity into fundamental productivity and the costs of quality, and separate the demand residual into fundamental demand and quality benefits. Fundamental demand accounts for most revenue variation, whereas quality's revenue-enhanc...
