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When is competition price‐increasing? The impact of expected competition on prices.

We examine the effect of expected competition on markups in a random utility model where the number of competing firms may differ across consumers. Firms observe consumers' utility shocks and set prices using personalized pricing. We derive a precise condition under which the expected markup across...

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Published in:RAND Journal of Economics (Wiley-Blackwell) Vol. 55; no. 4; pp. 627 - 658
Main Author: Mangin, Sephorah
Format: Article
Published: Wiley-Blackwell Dec2024
Subjects:
Consumers
Prices
Extreme value theory
Expected utility
Price markup
Online Access:View this record in EBSCOhost

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