76 Ergebnisse, ab 21
Diskussionspapiere 1904 / 2020

Local Power Markets

In current power markets, the bulk of electricity is sold wholesale and transported to consumers via long-distance transmission lines. Recently, decentralized local power markets have evolved, often as isolated networks based on solar generation. We analyze strategic pricing, investment, and welfare in local power markets. We show that local power markets with peer-to-peer trading are competitive and ...

2020| Pio Baake, Sebastian Schwenen, Christian von Hirschhausen
Diskussionspapiere 1686 / 2017

Competition between For-Profit and Industry Labels: The Case of Social Labels in the Coffee Market

We model strategic interaction on a market where two labeling organizations compete and firms in duopoly decide which labels to offer. The incumbent label maximizes its own profit, and is challenged by an industry standard which maximizes industry profit. Using a nested logit, the result of this multi-stage game depends crucially on the degree of horizontal differentiation. Joint firm profit always ...

2017| Pio Baake, Helene Naegele
Diskussionspapiere 1635 / 2017

Upstream Monopoly and Downstream Information Sharing

We analyze a vertical structure with an upstream monopoly and two downstream retailers. Demand is uncertain but each retailer receives an informative private signal about the state of the demand. We construct an incentive compatible and ex ante balanced mechanism which induces the retailers to share their information truthfully. Information sharing can be profitable for the retailers but is likely ...

2017| Pio Baake, Andreas Harasser
Diskussionspapiere 1629 / 2016

Interconnection and Prioritization

We analyze pricing and competition under paid prioritization within a model of interconnected internet service providers (ISPs), heterogeneous content providers (CPs) and heterogeneous consumers. We show that prioritization is welfare superior to a regime without prioritization (network neutrality) and yields higher incentives for investment in network capacities. As ISPs price discriminate between ...

2016| Pio Baake, Slobodan Sudaric
Diskussionspapiere 1543 / 2016

Information Acquisition in Vertical Relations

We analyze a simple supply chain with one supplier, one retailer and uncertainty about market demand. Focusing on the incentives of the supplier and the retailer to enhance their private information about the actual market conditions, we show that choices on information acquisition are strategic complements. While the retailer's incentives are mainly driven by the information rent that he can earn, ...

2016| Pio Baake, Andreas Harasser, Friederike Heiny
Diskussionspapiere 1342 / 2013

Crop Failures and Export Tariffs

We analyse a stylized model of the world grain market characterized by a small oligopoly of traders with market power on both the supply and demand side. Crops are stochastic and exporting countries can impose export tariffs to protect domestic food prices. Our first results is that export tariffs are strategic complements and that for poor harvests equilibrium tariffs can explode (shedding some light ...

2013| Pio Baake, Steffen Huck
Diskussionspapiere 1335 / 2013

Price Guarantees, Consumer Search, and Hassle Costs

The paper deals with the competitive effects of price guarantees in a spatial duopoly where consumers can search for lower prices but have to incur hassle costs if they want to claim a price guarantee. It is shown that symmetric equilibria with and without price guarantees exist but price guarantees will have no effect on prices if search costs are low, hassle costs are high and the number of uninformed ...

2013| Pio Baake, Ulrich Schwalbe
Diskussionspapiere 968 / 2010

Quality Distortions in Vertical Relations

This paper examines how delivery tariffs and private quality standards are determined in vertical relations that are subject to asymmetric information. We consider an infinitely repeated game where an upstream firm sells a product to a downstream firm. In each period, the firms negotiate a delivery contract comprising the quality of the good as well as a non-linear tariff. Assuming asymmetric information ...

2010| Pio Baake, Vanessa von Schlippenbach
Diskussionspapiere 919 / 2009

Mergers in Imperfectly Segmented Markets

We present a model with firms selling (homogeneous) products in two imperfectly segmented markets (a "high-demand" and a "low-demand" market). Buyers are mobile but restricted by transportation costs, so that imperfect arbitrage occurs when prices differ in both markets. We show that equilibria are distorted away from Cournot outcomes to prevent consumer arbitrage. Furthermore, a merger can lead to ...

2009| Pio Baake, Christian Wey
Diskussionspapiere 793 / 2008

Upfront Payments and Listing Decisions

We analyze the listing decisions of a retailer who may ask her suppliers to make upfront payments in order to be listed. We consider a sequential game with upfront payments being negotiated before short-term delivery contracts. We show that the retailer is more likely to use upfront payments the higher her bargaining power and the higher the number of potential suppliers. Upfront payments tend to lower ...

2008| Pio Baake, Vanessa von Schlippenbach
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