Search results for "Price discrimination"
showing 8 items of 8 documents
Pricing to market behaviour in European car markets
2003
Abstract This paper investigates PTM behaviour in European car markets for a period of great interest (1993–98), taking into account the role of invoicing currency. The results indicate that local currency price stability is a strong and pervasive phenomenon across products independently of the invoicing currency. The paper offers robustness checks, tests and arguments that justify the interpretation of this finding, at least in part, as evidence of PTM. It implies the existence of market segmentation and price discrimination, despite the completion of the single market programme on 1 January 1993.
Security in digital markets
2019
Abstract This paper contributes to the literature on security in digital markets. We analyze a two-period monopoly market in which consumers have privacy concerns. We make three assumptions about privacy: first, that it evolves over time; second, that it has a value that is unknown by all market participants in the first period; and third, that it may affect market participants' willingness to pay for products. The monopolist receives a noise signal about consumers' average privacy. This signal allows the monopolist to adjust the price in the second period and engage in price discrimination. The monopolist's price in period 2 acts as a signal to consumers about privacy. This signal, togethe…
Price discrimination and market power in export markets: The case of the ceramic tile industry.
2005
This paper combines the pricing-to-market equation and the residual demand elasticity equation to measure the extent of competition in the export markets of ceramic tiles, which has been dominated by Italian and Spanish producers since the late eighties. The findings show that the tile exporters enjoyed substantial market power over the period 1988-1998, and limited evidence that the export market has become more competitive over time.
Should conference pricing mechanisms incorporate options?
2016
The provision of many services is often characterized by demand uncertainty, as, at the time of purchase, consumers may not be completely informed about their valuation for the service or the possibility to utilize the service when it will actually be provided. For such reason, service providers implement several pricing mechanisms to maximize their profits in presence of consumer uncertainty and heterogeneity. A commonly adopted mechanism is intertemporal price discrimination, under which service providers charge different prices to consumers buying at different times. For instance, a lower price is usually offered to consumer buying early in advance, whereas higher price is practiced to l…
Mobile telephony in emerging markets: The importance of dual-SIM phones
2020
Abstract A substantial share of customers in emerging markets use dual-SIM phones and subscribe to two mobile networks. A primary motive for so called multi-simming is to take advantage of cheap on-net services from both networks. In our modelling effort, we augment the seminal model of competing telephone networks á la Laffont, Rey and Tirole (1998b) by a segment of flexible price hunters that may choose to multi-sim. According to our findings, in equilibrium, the networks set a high off-net price in the linear tariffs to achieve segmentation. This induces the price hunters to multi-sim. We show that increased deployment of dual-SIM phones may induce a mixing equilibrium with high expected…
Introduction to Price Bundling
1999
Collecting goods or services in a package and selling them at a (discounted) package price has become a widespread sales practice in many production or service oriented industries. The methodology itself is called Price Bundling and can be classified as a price differentiation tool for the price management of multiproduct/service enterprises.
Competition and inflation differentials in EMU
2008
In a monetary union, inflation rate differentials may be substantial over the business cycle. This paper parameterizes a two-country monetary union in which different economic structures in the two countries generate temporary inflation differentials. Cross-country differences are introduced in (i) the elasticity of demand in the goods markets, which cause producers to discriminate prices, (ii) the degree of price inertia and (iii) the degree of openness or preference for foreign goods in consumption. The model is calibrated to reproduce two average large EMU countries and it is able to generate such inflation differentials. We find the mechanism of price discrimination quantitatively more …
Dynaaminen hinnoittelu verkkokaupoissa
2016
Tämän kandidaattitutkielman tarkoituksena on selvittää kirjallisuuskatsauksella, minkälaisia dynaamisen hinnoittelun mahdollisuuksia yrityksellä on verkkokaupoissa. Tutkielmassa käydään läpi, mitä dynaaminen hinnoittelu on, millaisia dynaamisen hinnoittelun malleja on olemassa, minkälaista tietoa minkä- kin mallin käyttö tarvitsee, miten tietoa haetaan ja käsitellään sekä millaisia riskejä dynaamiseen hinnoitteluun sisältyy. Dynaaminen hinnoittelu on hinnoittelumalli, jossa hintaa muutellaan hinnoitteluun liittyvien tietojen perusteen. Dynaamisilla hinnoittelumetodeilla pyritään selvittämään asiakkaan maksuhalukkuus, hinnoitella tuote tai palvelu sen mukaan, ja näin saada maksuhalukkaammilt…