This paper uses laboratory methods to evaluate determinants of supra-competitive pricing. The experiment involves three treatments, each with the same market supply, demand, and competitive price. In the baseline treatment, capacity is divided among five sellers so that the competitive price is a Nash equilibrium. Market power is created in a second treatment by reallocating capacity among the ...

Abstract We show that a competitive equilibrium always exists in combinatorial auctions with anonymous graphical valuations and pricing, using discrete geometry. This is an intuitive easy-to-construct class of can model both complementarity substitutes, to our knowledge, it the first besides gross substitutes have guaranteed equilibrium. prove through counter-examples result tight, we give expl...

Traditionally, airlines have been limited to a set of fixed fare classes and, in turn, price points, distribute their products. The advent IATA’s new distribution capability (NDC) will soon enable quote any from continuous range. In theory, such pricing could increase revenues by extracting more the consumer surplus, through its ability offer granular fares, closer customer’s willingness-to-pay...

Recently, there has been a surge of interest in algorithms that allocate advertisement space in an online revenue-competitive manner. Most such algorithms, however, assume a pay-as-you-bid pricing scheme. In this paper, we study the query allocation problem where the ad space is priced using the well-known and widely-used generalized second price (GSP) scheme. We observe that the previous algor...