Read Books Online and Download eBooks, EPub, PDF, Mobi, Kindle, Text Full Free.
Endogenous Quality Choice
Download Endogenous Quality Choice full books in PDF, epub, and Kindle. Read online Endogenous Quality Choice ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Book Synopsis Endogenous Quality Choice by : Tarek H. Selim
Download or read book Endogenous Quality Choice written by Tarek H. Selim and published by . This book was released on 2019 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: The present paper is concerned with providing a core model to address the issue of firms simultaneously competing in both prices and quantities (capacity levels) within a simple duopoly market setting where products are asymmetrically differentiated by endogenous quality location. A three-stage competitive framework is introduced such that non-collusive firms compete in quality location, followed by choice of fixed capacity, and finally, they compete in prices. There is a continuum of consumers uniformly distributed along a vertical quality street of product locations. In general, a Bertrand-Nash equilibrium with fixed Cournot quantities (fixed capacity) is achieved. Firms tend to move away from minimum differentiation as quality cross-effects in fixed cost investments become less severe, but not necessarily choosing quality locations which would lead towards an outcome of maximum differentiation. An output asymmetry always exists at equilibrium such that the high quality firm always carries excess production capacity relative to the low quality firm. Total production capacity, however, may not fully cover market demand for an incumbent duopoly.
Book Synopsis Endogenous Quality Choice Under Upstream Market Power by : Borja Mesa
Download or read book Endogenous Quality Choice Under Upstream Market Power written by Borja Mesa and published by . This book was released on 2010 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Endogenous Quality Selection by Multiproduct Firms by : Chenghuan Sean Chu
Download or read book Endogenous Quality Selection by Multiproduct Firms written by Chenghuan Sean Chu and published by . This book was released on 2007 with total page 218 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Quantity Restrictions and Endogenous Quality Choice by : Iñigo Herguera García
Download or read book Quantity Restrictions and Endogenous Quality Choice written by Iñigo Herguera García and published by . This book was released on 1998 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper we show that in a vertically product differentiation model where foreign and domestic firms compete in quantities, both firms respond by lowering their qualities for a restriction at, or close to, the free trade level. Both firms lower qualities, raise prices and earn higher profits. Moreover, quality downgrading is also obtained for quotas slightly above the free trade import level. However, if the restriction is substantially smaller than the free trade equilibrium, an increase in average quality is observed only when the foreign firm produces the low quality good. The change in quality depends not only on whether the recipient is a high- or low-quality firm. It also depends on how restrictive the constraint is. Thus, in an imperfectly competitive market the imposition of quantitative restrictions has important strategic effects on the choice of quality.
Book Synopsis Endogenous Timing in Quality Choices and Price Competition by : Luca Lambertini
Download or read book Endogenous Timing in Quality Choices and Price Competition written by Luca Lambertini and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis A Note on Strategic Trade Policy and Endogenous Quality Choice by : Tsuyoshi Toshimitsu
Download or read book A Note on Strategic Trade Policy and Endogenous Quality Choice written by Tsuyoshi Toshimitsu and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper shows that some of the main policy implications in Park (2001) and Zhou, Spencer, and Vertinsky (2002) are sensitive to their assumptions on marginal production costs. The unilaterally optimal policy for investment towards quality improvement is analyzed, assuming constant and non-negative marginal production costs under vertically differentiated international duopoly. If marginal production costs are different across firms, the optimal policy for each exporting country may be opposite in its sign from that shown by the existing papers under Bertrand competition. The policy reversal may also occur for the low-quality exporting country under Cournot competition.
Book Synopsis Quality Choices and Endogenous Market Structure When 'Location' Matters by : Cesaltina Pires
Download or read book Quality Choices and Endogenous Market Structure When 'Location' Matters written by Cesaltina Pires and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Previous literature has analyzed the quality-price decisions and the market structure that arises endogenously, in a setup where variable production costs depend on quality. This paper goes one step further by admitting the existence of "transportation" costs for consumers who buy from the firm located at the "periphery", where "periphery" can have a spatial interpretation (like in the housing market) or an interpretation related with some pre-existent feature of the firms, that leads consumers to value differently products with the same hedonic quality. Our results show an "asymmetry" arising from different locations. The firm with locational advantage may be able to behave as a partial coverage monopolist. Moreover, when a duopoly emerges in equilibrium, if the high-quality firm is located in the periphery, qualities offered will be higher than in the absence of locational asymmetries. The reason is that the high-quality firm will try to compensate its locational disadvantage by further increasing quality, which leads the low-quality firm to do the same. This puts in evidence a sort of "substitutability" effect between location and quality in firms' strategic interaction.
Book Synopsis The Welfare Effects of Endogenous Quality Choice in Cable Television Markets by : Gregory S. Crawford
Download or read book The Welfare Effects of Endogenous Quality Choice in Cable Television Markets written by Gregory S. Crawford and published by . This book was released on 2015 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: We measure the welfare consequences of endogenous quality choice in imperfectly competitive markets. We introduce the concept of a "quality markup" and measure the relative welfare consequences of market power over price and quality. For U.S. paid-television markets during 1997-2006, we find that not only are cable monopolists' prices 33% to 74% higher than marginal costs, but qualities are also 23% to 55% higher than socially optimal and the welfare costs of each are similar in magnitude. Such evidence for "quality inflation" by monopolists is at odds with classic results in the literature.
Book Synopsis Endogenous Product Choice by : Gregory S. Crawford
Download or read book Endogenous Product Choice written by Gregory S. Crawford and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Empirical models of differentiated product demand are widely used by both academics and practitioners. While these methods treat carefully the potential endogeneity of price, until recently they have assumed the number and characteristics of the products offered by firms are exogenous. This paper presents a progress report on an ongoing research agenda to address this issue. First, it summarizes how the appropriate choice of 'orthogonal' instruments can yield consistent estimates of own and cross-price elasticities in the presence of endogenous product characteristics. Second, it summarizes how to measure 'quality markups' and the welfare consequences of endogenous product quality in U.S. cable television markets. Related papers and extensions to consider multiple product characteristics and dynamics are also discussed.
Book Synopsis Quality Choice, Fixed Costs and Equilibrium in Models of Vertical Differentiation by :
Download or read book Quality Choice, Fixed Costs and Equilibrium in Models of Vertical Differentiation written by and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: I provide a full characterization of the quality choice in duopolies with vertical differentiation, without assuming ex-ante if the market is fully covered or not. This will allow to show that covered or uncovered market configurations are endogenous outcomes of firms strategic interaction. To this purpose, I assume that firms are characterized by quadratic fixed costs of quality improvements and check whether pure-strategy subgame perfect equilibria with a corner solution always exist. Finally, my results are compared to the quality choice that maximizes the total surplus of the economy. I show that the welfare-maximizing choice of qualities does not have to be found in the same market configuration of the corresponding market equilibrium.
Book Synopsis The Diffusion of Consumer Durables in a Vertically Differentiated Oligopoly by : Raymond J. Deneckere
Download or read book The Diffusion of Consumer Durables in a Vertically Differentiated Oligopoly written by Raymond J. Deneckere and published by . This book was released on 1992 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Sequential Versus Simultaneous Choice with Endogenous Quality by :
Download or read book Sequential Versus Simultaneous Choice with Endogenous Quality written by and published by . This book was released on 1997 with total page 7 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Ownership Structure and Endogenous Quality Choice in a Duopoly Framework by : Ruben Hoffmann
Download or read book Ownership Structure and Endogenous Quality Choice in a Duopoly Framework written by Ruben Hoffmann and published by . This book was released on 2004 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis International Prices and Endogenous Quality by : Robert C. Feenstra
Download or read book International Prices and Endogenous Quality written by Robert C. Feenstra and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The unit values of internationally traded goods are heavily influenced by quality. We model this in an extended monopolistic competition framework where, in addition to choosing price, firms simultaneously choose quality. We allow countries to have non-homothetic demand for quality. The optimal choice of quality by firms reflects this non-homothetic demand as well as the costs of production, including specific transport costs, under the "Washington apples" effect. We estimate the implied gravity equation using detailed bilateral trade data for about 200 countries over 1984-2008. Our system identifies quality and quality-adjusted prices, from which we will construct price indexes for imports and exports for each country that will be incorporated into the next generation of the Penn World Table.
Book Synopsis Strategic Complementarities and Endogenous Heterogeneity in Oligopolistic Markets by : Malgorzata Knauff
Download or read book Strategic Complementarities and Endogenous Heterogeneity in Oligopolistic Markets written by Malgorzata Knauff and published by Presses univ. de Louvain. This book was released on 2006 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt: The thesis consists of five chapters. The first of them contains introduction. Chapter 2 considers a broad class of two player symmetric games, which display a fundamental non-concavity when actions of both players are about to be the same. This implies that no symmetric equilibrium is possible. We distinguish different properties of the payoff functions, like strategic substitutes, complements and quasi-concavity, which are not necessarily imposed globally on the joint action space. A number of applications from industrial organization and applied microeconomics literature are provided. In Chapter 3 we generalize to the extent possible the known results for the case of games with one-dimensional action sets to the general case of games with action spaces that are complete lattices. We find that in the general case the scope for asymmetric equilibrium behavior is definitely broader than in the one-dimensional case, though still quite limited. Moreover, we investigate under which sufficient conditions asymmetric pure strategy Nash equilibria are always Pareto dominated by symmetric pure strategy Nash equilibria. In Chapter 4 we deal with the effects of market transparency on prices in the Bertrand duopoly model. We consider two types of strategic interaction between firms in an industry - strategic complementarities and substitutabilities. In the first case, the results are close to conventional wisdom, especially, when in the same time products are substitutes. Namely, equilibrium prices and profits are always decreasing in transparency level, while the consumer’s surplus is increasing. Considering price competition with strategic substitutes, an ambiguity in the direction of change of prices appears. This leads to ambiguity concerning equilibrium profits and surplus changes caused by increasing transparency. In Chapter 5 we provide general conditions for Cournot oligopoly with product differentiation to have monotonic reaction correspondences. We give a proof for the conditions stated by Vives (1999). Moreover we elaborate more general requirements. They allow for identifying increasing best responses even in case inverse demand is submodular, and similarly, decreasing best responses in case of supermodular inverse demand. Examples illustrating the scope of applicability of these results are provided.
Book Synopsis Quality Choice, Fixed Costs and Equilibrium in Models of Vertical Differentiation by : Matteo Alvisi
Download or read book Quality Choice, Fixed Costs and Equilibrium in Models of Vertical Differentiation written by Matteo Alvisi and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: I provide a full characterization of the quality choice in duopolies with vertical differentiation, without assuming ex-ante if the market is fully covered or not. This will allow to show that covered or uncovered market configurations are endogenous outcomes of firms' strategic interaction. To this purpose, I assume that firms are characterized by quadratic fixed costs of quality improvements and check whether pure-strategy subgame perfect equilibria with a corner solution always exist. Finally, my results are compared to the quality choice that maximizes the total surplus of the economy. I show that the welfare-maximizing choice of qualities does not have to be found in the same market configuration of the corresponding market equilibrium.
Book Synopsis Economic dances for two - and three by : Andrey Andreyevich Dubovik
Download or read book Economic dances for two - and three written by Andrey Andreyevich Dubovik and published by Rozenberg Publishers. This book was released on 2010 with total page 121 pages. Available in PDF, EPUB and Kindle. Book excerpt:
