Two-Stage Oligopoly Pricing with Differentiated Product: The Boston Fluid Milk Market

Oligopoly Pricing with Differentiated Products: The Boston Fluid Milk Market Channel

Competitive Outcomes in Product-Differentiated Oligopoly

This paper analyzes the effect of market concentration and product differentiation on the observed outcomes of competition among oligopolists. The empirical framework is designed to examine whether competition is less intense in markets with equal levels of concentration, but more differentiation among the products offered. A two-stage estimation procedure is proposed to address the endogeneity...

Food Marketing Policy Center Demand for Differentiated Milk Products: Implications for Price Competition

This article uses a discrete choice, random coefficients logit model for analyzing consumer behavior and retail price competition in the Boston fluid milk market. The problems of product dimensionality and consumer heterogeneity implied by imperfect substitution in markets with differentiated products were solved by applying the model of Berry, Levinhson and Pakes (1995). Empirical results show...

Estimating the Effects of Tax Reform in Differentiated Product Oligopolistic Markets

Estimating the Effects of Tax Reform in Differentiated Product Oligopolistic Markets The incidence of taxation has been extensively discussed in the public finance literature, but mainly within a competitive market setting or within a homogenous good (Cournot type) oligopoly. In a differentiated product oligopoly the effect of taxation can be more complex as the rate of taxation may affect not ...

Rising or Dropping: the Consumer Review-oriented Pricing Paradox

Product pricing strategy and online word-of-mouth both influence consumer purchase. There have been increasing interests and conflict results on how to optimize seller’s pricing strategy in dealing with the interaction between price, consumer review, and sales. We focus on the early stage of product sales and develop a two-stage economic model. We find that the product type, that is, whether th...