This paper describes methods for determining the prices for a discrete set of interrelated products oflered by a single supplier. Each product has a fixed marginal rate per unit, the demand for each product depends upon the price levels of all the products and the supplier’s cost function depends upon the demands for all the products. For spec$c demand function forms, methods are described for ...

This paper demonstrates that vertical divestiture may increase consumer welfare even when the divestiture eliminates substantial scope economies and precludes only limited sabotage. More generally, the merits of vertical divestiture are shown to vary with: (1) the type and the intensity of competition in the retail market; (2) the locus of scope economies under vertical integration; and (3) the...

We derive the closed-form solution that characterizes the equilibrium in the circular city model, when competing firms have heterogeneous production costs. Tractability issues in this setting are well-known and have not been resolved in prior work. In this paper, the equilibrium solution illustrates the effects of production costs on firms’ strategic decisions and profits and on consumer surplu...

The 2009 CARD Act limited credit card lenders’ ability to raise borrowers’ interest rates on the basis of information learned during lending relationships. This paper estimates the efficiency and distributional effects of these restrictions using account-level data from a near-universe of US credit cards. I show that two forces drove these restrictions’ effects. First, I show that the Act const...

By constructing a mixed oligopoly competition model in an open economy, the internal relationship between tariff policy changes, domestic corporate social responsibility and technological innovation is deeply revealed. The theoretical deduction shows that rate has negative correlation with preference of consumer-friendly enterprises, reducing can improve enterprises; Higher rates will reduce co...

interest. The glut of milk has enabled the price to the consumer in London to be reduced to 2Jd. per pint, and this will in all probability be maintained for some time to come. It is expected that there will be a daily surplus of considerably over half a million gallons during the next three months, and one way by which the public can serve both their own interests and that of the farmers who a...

Online reputation mechanisms are emerging as a promising alternative to more established mechanisms for promoting trust and cooperative behavior, such as legally enforceable contracts. As information technology dramatically reduces the cost of accumulating, processing and disseminating consumer feedback, it is plausible to ask whether such mechanisms can provide an economically more efficient s...

We analyze how termination charges affect retail prices when taking into account that receivers derive some utility from a call and when firms may charge consumers for receiving calls. We assume that consumers form expectations about network sizes in a passive, but ex-post rational way. We show that RPP enlarges the set of equilibria compared to CPP. For a given termination charge and inelastic...

This note corrects certain errors in welfare calculations and graphs of a paper by Roller and Tombak (JIE, 1990). The corrections necessitate a re-interpretation of some of their results. Contrary to authors' assertion (Proposition 1), consumer surplus is not always the highest in (FMS, FMS) state. Producing in both markets imposes a negative externality that grows as products become more subst...

A model of surplus values within information ecosystems is presented. The model is based on the classical definition of surplus value. However, as this definition was developed within a manufacturing industry context, some modifications are necessary to adopt it to the context of information ecosystems, e.g., by taking into account that products are “virtual” rather than physical. Just as in ag...