Αποτελέσματα Αναζήτησης
1 Μαρ 2014 · If firms’ prices are sticky (i.e., firms cannot change their prices) in the presence of coupon trading, coupon redemptions and demand will increase, but firm profits may decrease. However, if firms can adjust prices flexibly, coupon trading allows them to raise prices without significantly reducing the demand, leading to higher profits.
According to game theory, two firms in a duopoly playing tit-for-tat strategies will in the long run be able to save money by not advertising. Don't know? What generally causes U.S. companies in oligopoly to have similar prices?
When a firm moves from uniform pricing (e.g., no coupons) to second-degree price discrimination (e.g., coupons), all consumers may face a lower price. This finding has public policy implications because second-degree price discrimination may increase the welfare of every consumer.
1 Μαρ 2014 · This paper investigates a new phenomenon of coupon trading and addresses an under-studied research question: how does coupon trading affect consumer purchase and firm profits? Specifically, we build a model to examine the impact of consumer hassle cost, coupon face value, and firms’ pricing strategies on firm profits in the presence of coupon ...
Explain the effect of a change in fixed cost on price and output in the short run and in the long run under perfect competition. In the long run, a firm is free to adjust all of its inputs. New firms can enter any market; existing firms can leave their markets.
We know that a firm will maximize profits by producing the quantity of output, Q M, where MR = MC. But we just learned that the firm can earn even more profit by producing at Q E. How can both of these statements be true? The answer is price discrimination.
When P > MC, which is the outcome in a monopolistically competitive market, the benefits to society of providing additional quantity, as measured by the price that people are willing to pay, exceed the marginal costs to society of producing those units.
