Does competitive pricing cause market breakdown under extreme adverse selection?

Joint optimization of pricing and capacity allocation for two competitive airlines under demand uncertainty

Nowadays, airline industries should overcome different barriers regarding the fierce competition and changing consumer behavior. Thus, they attempt to focus on joint decision making which enables them to set pricing and capacity allocation to maximize their profits. In this research, we develop a model to optimize pricing and capacity allocation in a duopoly of single-flight leg for two competi...

How Does Pricing of Day-ahead Electricity Market Affect Put Option Pricing?

In this paper, impacts of day-ahead market pricing on behavior of producers and consumers in option and day-ahead markets and on option pricing are studied. To this end, two comprehensive equilibrium models for joint put option and day-ahead markets under pay-as-bid and uniform pricing in day-ahead market are presented, respectively. Interaction between put option and day-ahead markets, uncerta...

Adverse Selection, Market Structure, and Competitive Pricing in Bank Lending

Dealer Intermediation Between Markets

We develop a dynamic model of dealer intermediation between a monopolistic customerdealer (B2C) market and a competitive inter-dealer (B2B) market. Dealers face inventory constraints and adverse selection. We characterize the optimal quote setting and inventory management behavior for both markets in closed form and reveal how price setting in one market segment influences quote behavior in the...

The market value for product attribute improvements under price personalization

a r t i c l e i n f o Article history: First received in 18, July 2012 and was under review for 4 ½ months Available online xxxx Personalization of the marketing mix is a topic of much interest to marketing academics and practitioners. Using discrete choice demand theory, we investigate the aggregate market value for product attribute improvements when firms are engaged in personalized pricing....