Dr IOANA CHIOVEANU Ioana.Chioveanu@nottingham.ac.uk
Associate Professor
A more general model of price complexity
Chioveanu, Ioana
Authors
Abstract
This paper analyses a model of competition where the …rms set not only prices but also the complexity levels of their prices (which determine how di¢ cult it is for consumers to assess the price o¤ers). Unlike previous work, in this model, the …rms'confusion technology may be non-linear in the aggregate complexity level. The equilibrium probability of using high complexity increases in the number of …rms but decreases in the convexity of the confusion technology. In large markets, the …rms use high complexity almost surely. However, the industry pro…t converges to the highest level with concave technologies and to the lowest level with convex technologies. An increase in consumer sophistication, which bene…ts the consumers, may not reduce market complexity.
Citation
Chioveanu, I. (2020). A more general model of price complexity. International Journal of Industrial Organization, 69, Article 102563. https://doi.org/10.1016/j.ijindorg.2019.102563
Journal Article Type | Article |
---|---|
Acceptance Date | Nov 16, 2019 |
Online Publication Date | Nov 28, 2019 |
Publication Date | Mar 1, 2020 |
Deposit Date | Mar 3, 2020 |
Publicly Available Date | Nov 29, 2021 |
Journal | International Journal of Industrial Organization |
Print ISSN | 0167-7187 |
Electronic ISSN | 1873-7986 |
Publisher | Elsevier |
Peer Reviewed | Peer Reviewed |
Volume | 69 |
Article Number | 102563 |
DOI | https://doi.org/10.1016/j.ijindorg.2019.102563 |
Keywords | price complexity; confusion technology; concavity/convexity; oligopoly markets |
Public URL | https://nottingham-repository.worktribe.com/output/4084580 |
Publisher URL | https://www.sciencedirect.com/science/article/pii/S0167718719300918 |
Additional Information | Chioveanu, I. (2020). A more general model of price complexity. International Journal of Industrial Organization, 69, 102563. https://doi.org/10.1016/j.ijindorg.2019.102563 |
Files
A More General Model Of Price Complexity
(311 Kb)
PDF
You might also like
An Asymmetric Duopoly Model of Price Framing
(2018)
Journal Article
The Optimal Minimum Wage with Regulatory Uncertainty
(2017)
Journal Article
Pro-Consumer Price Ceilings under Regulatory Uncertainty
(2018)
Journal Article
Prominence, complexity, and pricing
(2019)
Journal Article
Wholesale Price Discrimination: Innovation Incentives and Upstream Competition
(2018)
Journal Article
Downloadable Citations
About Repository@Nottingham
Administrator e-mail: discovery-access-systems@nottingham.ac.uk
This application uses the following open-source libraries:
SheetJS Community Edition
Apache License Version 2.0 (http://www.apache.org/licenses/)
PDF.js
Apache License Version 2.0 (http://www.apache.org/licenses/)
Font Awesome
SIL OFL 1.1 (http://scripts.sil.org/OFL)
MIT License (http://opensource.org/licenses/mit-license.html)
CC BY 3.0 ( http://creativecommons.org/licenses/by/3.0/)
Powered by Worktribe © 2024
Advanced Search