In their recent work, Matsumura and Ogawa (2012) showed that in the context of a mixed duopoly, equilibrium social welfare is higher in price-setting competition than in quantity-setting competition. We found that when the strength of network effects is sufficiently high, the above result is totally reversed; thus, in a mixed duopoly, the presence of network effects weakens the superiority of p...

Inc. for providing the data used in this study and David Bell for assistance with the use of the data. We also thank the editor and three anonymous reviewers for their comments and suggestions. This paper investigates the nature of segmentation in store choice behavior where competing supermarkets offer Every Day Low Price (EDLP) and High-Low Promotional Price (HILO) formats. Previous research,...

OBJECTIVES To describe alternative policies aimed at encouraging price competition in generic drug markets in countries with strict price regulation, and to present some case studies drawn from the European experience. METHODS Systematic literature review of articles and technical reports published after 1999. RESULTS The shortcomings in consumer price competition observed in some European ...

The main business of an investment company is to hold and manage securities for investment purposes. In today competitive market Pricing and its methodology are complicated motions. It is very important to define a price that can prevail the competition in an open and free market. In order to define the price certain circumstances should be considered. In the academic arena there have been seve...

In this paper, we empirically test the relation between price discrimination and product market competition in a two-sided market environment using a new data set of Spanish local TV stations that provides information on subscription and advertising prices per station for 1996, 1999 and 2002. Due to changes in regulation during this period affecting the degree of local market competition, we us...

Some studies show that Internet markets are more efficient than conventional markets with respect to price levels, menu costs, and price elasticity, except substantial and persistent dispersion in prices on the Internet. Is price dispersion in Internet markets higher than that of conventional markets? This paper examines the nature of price competition in books among five online book-sellers in...

This article presents a model to analyze consumer welfare, price, and competition in a three-way market among consumers, medical providers, and insurers. While insurers compete with each other for customers, they also act as collective bargaining agents on behalf of consumers in determining the equilibrium price of health care with providers. The entry of an additional insurer thus has contradi...

Based on the recent trade models of the Heterogeneous Firms Trade (HFT) model and the Quality Heterogeneous Firms Trade (QHFT) model, we classify export goods (at the HS 6-digit level of disaggregation) by quality and price competition. We find a high proportions of quality-competition goods for the major EU countries and lower proportions for Canada, Australia and China. However, the overlap o...

This paper develops the Latent Symmetric Elasticity Structure (LSES), a market share price elasticity model which allows elasticities to be decomposed into two components: a symmetric substitution index revealing the strength of competition between brand pairs, and a brand-specific coefficient revealing the overall impact of a brand on its competitors. An application of the model to unconstrain...