| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP15379 |
| DP15379 Competition in a spatially-differentiated product market with negotiated prices | |
| Walter Beckert; Howard Smith; Yuya Takahashi | |
| 发表日期 | 2020-10-18 |
| 出版年 | 2020 |
| 语种 | 英语 |
| 摘要 | In many markets the buyer pays an individually-negotiated price. Theoretically, relative to uniform-pricing, this has an ambiguous impact on market power and the effects of merger. To analyze competition in the UK brick industry—where individually-negotiated pricing is used, and the market is highly concentrated—we develop a model of negotiated pricing and discrete-choice demand which permits alternative specifications for how the buyer’s runner-up product affects price negotiations. We derive a likelihood for observed choices and prices and estimate the model using transaction-level data. We use the model to reject the hypothesis of price-taking buyers, calculate the distribution of markups, and measure the effect on markups of multi-product ownership and buyer location. A counterfactual policy of uniform pricing increases average markups by about one-third, harms most buyers, and magnifies the price-increasing effect of merger. Average markups increase because uniform pricing is intrinsically less competitive and because it imposes buyer price-taking. |
| 主题 | Industrial Organization |
| 关键词 | Individualized pricing Bargaining Price discrimination Spatial differentiation Merger analysis Construction supplies |
| URL | https://cepr.org/publications/dp15379 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/544363 |
| 推荐引用方式 GB/T 7714 | Walter Beckert,Howard Smith,Yuya Takahashi. DP15379 Competition in a spatially-differentiated product market with negotiated prices. 2020. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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