Download or read book Intertemporal Price Discrimination in Sequential Quantity Price Games written by James D. Dana (Jr.) and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops an oligopoly model in which firms first choose capacity and then compete in prices in a series of advance-purchase markets. We show that when the elasticity of demand falls across periods, strong competitive forces prevent firms from utilizing intertemporal price discrimination. We then enrich the model by allowing firms to use inventory controls, or sales limits assigned to individual prices. We show that competing firms can profitably use inventory controls. Thus, although typically viewed as a tool to manage demand uncertainty, we show that inventory controls can also facilitate price discrimination in oligopoly.
Download or read book Intertemporal Price Discrimination with Time Varying Valuations written by Victor F. Araman and published by . This book was released on 2020 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: A firm that sells a non perishable product considers intertemporal price discrimination in the objective of maximizing the long-run average revenue. Each period, a number of interested customers approach the firm and can either purchase on arrival, or remain in the system for a period of time. During this time, each customer's valuation changes following a discrete and homogenous Markov chain. Customers leave the system if they either purchase at some point, or their valuations reach an absorbing state v0. We show that, in this context, cyclic strategies are optimal, or nearly optimal. When the pace of intertemporal pricing is constrained to be comparable to customers patience level, we have a good control on the cycle length and on the structure of the optimizing cyclic policies. We also obtain an algorithm that yields the optimal (or near optimal) cyclic solutions in polynomial time in the number of prices. We cast part of our results in a general framework of optimizing the long-run average revenues for a class of payoffs that we call weakly coupled, in which the revenue per period depends on a finite number of neighboring prices.
Download or read book Intertemporal price discrimination and sticky prices written by Louis Phlips and published by . This book was released on 1977 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Dynamic Pricing written by Mark Stenius Roberts and published by . This book was released on 1977 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Intertemporal price discrimination in storable goods markets written by Igal Hendel and published by . This book was released on 2011 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: We study intertemporal price discrimination when consumers can store for future consumption needs. To make the problem tractable we offer a simple model of demand dynamics, which we estimate using market level data. Optimal pricing involves temporary price reductions that enable sellers to discriminate between price sensitive consumers, who anticipate future needs, and less price-sensitive consumers. We empirically quantify the impact of intertemporal price discrimination on profits and welfare. We find that sales: (1) capture 25-30% of the profit gap between non-discriminatory and third degree price discrimination profits, and (2) increase total welfare
Download or read book Intertemporal Price Discrimination and Competition written by Ralph C. Bayer and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In this study we investigate the impact of competition on markets for non-durable goods where intertemporal price discrimination is possible. We develop a simple model of different potential scenarios for intertemporal price discrimination and implement it in a laboratory experiment. We compare the outcomes in monopolies and duopolies. Surprisingly, we find that competition does not necessarily prevent intertemporal price discrimination, as our model predicts. However, competition generally reduces sales prices, but by far less than theory predicts. As expected, competition increases efficiency.
Download or read book Intertemporal Price Discrimination with Multiple Products written by Jean-Charles Rochet and published by . This book was released on 2017 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the multiproduct monopoly profit maximisation problem for a seller who can commit to a dynamic pricing strategy. We show that if consumers' valuations are not strongly-ordered then optimality for the seller requires intertemporal price discrimination and it can be implemented by dynamic pricing on the cross-sell to the bundle. If consumers are perfectly negatively correlated, reducing the cross-sell price at a single point in time is optimal. For general valuations we show that if the cross-partial derivative of the profit function is negative then dynamic pricing on the cross-sell is more profitable than fixing prices. So we show that the celebrated Stokey (1979) no-discrimination-across-time result does not extend to multiple good sellers when consumers' valuations are drawn from the tilted uniform, the shifted uniform, the exponential, or the normal distribution. We extend our results to welfare, to complementarities in demand, and to the determination of optimal discount schedules.
Download or read book Intertemporal Price Discrimination in a Congested Market written by and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Intertemporal Price Discrimination written by Samuel Raisanen and published by . This book was released on 2015 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: When tickets are sold in advance, as with airlines, concerts, theaters and sporting events, in some cases advanced sales are made at a discount and in others a premium is charged. This paper argues that the more preference certain consumers are regarding future purchases the more likely firms will charge premiums. Alternatively, the higher a firms capacity, the more likely advanced purchase discount will be offered. Finally, endogenizing capacity choice, it is then shown that firms with high marginal costs of capacity are likely to choose premium pricing while low marginal costs of capacity results in more frequent discount pricing.
Download or read book Intertemporal Price Discrimination in Infinite Horizon written by Lionel Wilner and published by . This book was released on 2011 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Intertemporal Price Discrimination written by Peter J. McGoldrick and published by . This book was released on 1997 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Intertemporal price discrimination uncertainty and introductory offers written by C. Doyle and published by . This book was released on 1985 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Micro foundations of Intertemporal Price Discrimination written by Teow Hock Koh and published by . This book was released on 2005 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: Investigates the optimality of intertemporal price discrimination for a durable-good monopoly in a model where infinitely-lived households face an intertemporal budget constraint and consume both durable goods and non-durable goods.
Download or read book Price Discrimination and Intertemporal Self selection written by Mark Bagnoli and published by . This book was released on 1990 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Intertemporal Pricing and Price Discrimination written by Thanasis Stengos and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Inter Temporal Price Discrimination with Time Inconsistent Consumers written by Yianis Sarafidis and published by . This book was released on 2006 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the inter-temporal price discrimination problem of a durable good monopolist facing time-inconsistent consumers. We look at both cases of sophisticated and naive time-inconsistent consumers, but the emphasis is on the naive case. When consumers are naive, we first need to confront the following question: how does the consumers' naivete about their preferences interact with their ability to predict future prices? We solve the game under two solution concepts. Under the first solution concept, which is similar in spirit to the SPNE, consumers have correct expectations about future prices. Under the second one, which relies on backwards induction, consumers' naive expectations concerning their future preferences lead them to have incorrect expectations about future prices. We show that under both solution concepts, as the degree of naivete rises, monopoly profits fall. The monopolist does not benefit from consumers' naivete and should instead educate naive consumers into sophisticated ones. Moreover, as the degree of naivete rises, both solution concepts predict that welfare falls for all consumers, except for the highest valuation ones, and prices approach marginal cost at a lower rate.
Download or read book Microeconomics written by S.K. Agarwala and published by Excel Books India. This book was released on 2008 with total page 412 pages. Available in PDF, EPUB and Kindle. Book excerpt:
