Personalization, Customization and Choice
... provide higher qualities to each consumer without the fear of intra-firm product cannibalization. When we look at personalization in the presence of strategic consumers, the results once again paint a complex picture. Villas-Boas (2006) shows that a monopolist is worse-off by offering one-to-one pro ...
... provide higher qualities to each consumer without the fear of intra-firm product cannibalization. When we look at personalization in the presence of strategic consumers, the results once again paint a complex picture. Villas-Boas (2006) shows that a monopolist is worse-off by offering one-to-one pro ...
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... slightly differentiated brands of their own. Brand advertising contributes to fixed costs in the short run because a firm must often set its advertising budget far in advance of sales. Under monopolistic competition, economic profit is short-lived as new firms enter the market and profits dissipate. ...
... slightly differentiated brands of their own. Brand advertising contributes to fixed costs in the short run because a firm must often set its advertising budget far in advance of sales. Under monopolistic competition, economic profit is short-lived as new firms enter the market and profits dissipate. ...
13MONOPOLISTIC COMPETITION AND OLIGOPOLY
... A) the MR curve cuts the ATC curve from below. B) the MR curve and the D curve do not coincide. C) the firm is incurring an economic loss. D) the firm is earning an economic profit. Answer: D Topic: Monopolistic Competition; Long-Run Equilibrium Skill: Analytical ...
... A) the MR curve cuts the ATC curve from below. B) the MR curve and the D curve do not coincide. C) the firm is incurring an economic loss. D) the firm is earning an economic profit. Answer: D Topic: Monopolistic Competition; Long-Run Equilibrium Skill: Analytical ...
Industry Evolution with Endogenous Entry and Exit
... price decreases alone. Analogously, firms’ production cost is allowed to change over time. Meanwhile, there are random shocks of demand and cost each period that persist over time. For example, a negative demand shock in a certain period not only directly hurts sales for that period, but also has an ...
... price decreases alone. Analogously, firms’ production cost is allowed to change over time. Meanwhile, there are random shocks of demand and cost each period that persist over time. For example, a negative demand shock in a certain period not only directly hurts sales for that period, but also has an ...
Marketing and the Economics of Convenience
... has been written about whether the market produces the right amount of variety. Indeed, the question of how many manufacturers should enter for the social good has been at the heart of research in economics (Dixit and Stiglitz 1977; Mankiw and Whinston 1986; Spence 1976) and marketing (Bayus and Put ...
... has been written about whether the market produces the right amount of variety. Indeed, the question of how many manufacturers should enter for the social good has been at the heart of research in economics (Dixit and Stiglitz 1977; Mankiw and Whinston 1986; Spence 1976) and marketing (Bayus and Put ...
Private Placements of Public Equity in China
... asymmetry information, managerial entrenchment, and investor over-optimism. For example, Wruck (1989) shows that the announcement of a private sale of equity is accompanied by a 4.41% average abnormal return and suggests that changes in ownership concentration can partially explain the positive ann ...
... asymmetry information, managerial entrenchment, and investor over-optimism. For example, Wruck (1989) shows that the announcement of a private sale of equity is accompanied by a 4.41% average abnormal return and suggests that changes in ownership concentration can partially explain the positive ann ...
The Silicon Valley Lawyer as Transaction Cost Engineer?
... In order to understand how Silicon Valley lawyers might create value, it is useful to explore how, in the many legal and nonlegal roles they play, lawyers' activities might bring the real-world of a given transaction closer to the hypothetical-world of the capital asset pricing model. It is also int ...
... In order to understand how Silicon Valley lawyers might create value, it is useful to explore how, in the many legal and nonlegal roles they play, lawyers' activities might bring the real-world of a given transaction closer to the hypothetical-world of the capital asset pricing model. It is also int ...