Suppose an intermediary provides a benefit to buyers when they purchase from sellers using the intermediary’s technology. We develop a model to show that the intermediary would want to restrict sellers from charging buyers more for transactions it intermediates. With this restriction an intermediary can profitably raise demand for its services by eliminating any extra price buyers face for purc...

This paper examines the relationship between a differentiated downstream market and a specialized upstream market. We analyze four different ways price competition takes place between the upstream and downstream sectors when the upstream market supplies specialized and complementary inputs to a downstream product differentiated market. The first is the benchmark case of decentralized markets, t...

This paper continues the discussion of teaching nondeterminism (see [6]) where we presented a didactic approach introducing the notion of nondeterministic automata. Although in this paper we use the same methodology we have to face up to new didactic challenges. Namely, teaching the subset construction requires answers to the question how can CAS be used in teaching the different phases of math...

This is the first paper on consumer search where the cost of going back to stores already searched is explicitly taken into account. We show that the optimal sequential search rule under costly second visits is very different from the traditional reservation price rule in that it is nonstationary and not independent of previously sampled prices. We explore the implications of costly second visi...

The role of the foundation in construction is crucial. Foundation planning aims to ensure that it can support loads up a specified safety limit, including maximum load may be encountered. serves as lower structure interacts with soil, providing stability and for superstructure. In this study, analysis focused on bearing capacity pile under lateral forces. Brinch Hansen method was employed deter...

When exchange is sequential, and no binding agreements can be written, the agent acting first is exposed to the possibility that, even if he honors the agreement, his trading partner may subsequently choose not to do so. The primary focus of the current analysis is whether trade can successfully occur in such environments. Exchange will successfully occur so long as there are sufficiently large...

A model of a decentralized market is developed that features search frictions, advertised prices and bargaining. Sellers can post ask prices to attract buyers through a process of directed search, but ex post there is the possibility of negotiation. Similarly, buyers can post negotiable bid prices to attract sellers. Even when transaction prices often differ from quoted prices, bid and ask pric...

For a durable consumption good which turns into waste after consumption, the socially optimal durability increases with an increase in the marginal environmental damage. In a laissez-faire equilibrium under perfect competition, producers fail to provide an efficient product design, i.e. durability is inefficiently small, whereas the amount of solid waste is inefficiently large. The market failu...

Papers studying the liquidity of a market tend to focus on decisions involving the trade-off between the selling price and the time-till-sale for a given set of market conditions. This paper characterizes market conditions using a price-probability locus; a change in market conditions is some combination of changes in the level and/or slope of this locus. I show how the effect of either type of...

Only a few studies have analysed staggering and synchronisation in pricing behaviour of multi-product firms. These studies used low-frequency data in an environment of high rates of inflation. This paper investigates staggering and synchronisation of weekly prices for ten food products in 131 grocery stores in Germany over the period from May 1995 to December 2000 (296 weeks). Different forms o...