|
on Industrial Organization |
|
Issue of 2017‒11‒19
four papers chosen by |
| By: | Daniel Herold (Justus-Liebig-University Giessen) |
| Abstract: | An information exchange between two producers selling independent products to the same retailer can have ambiguous effects on market efficiency and surplus. When a retailer's costs are unobservable the producers may have an incentive to communicate about their negotiations with that retailer. If each producer is allowed to place one offer the producers will have no incentive to exchange information. However, the retailer may communicate that he refused the first offer to the other firm which subsequently might place a lower offer. When one firm is allowed to place a second offer, two equilibria involve communication between the producers. In a separating equilibrium an information exchange ensures that agreement will always be found. In a hybrid equilibrium, the likelihood that agreement is found is less likely. |
| JEL: | L41 L42 L13 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201750&r=ind |
| By: | Gregory S. Crawford; Lachlan Deer; Jeremy Smith; Paul Sturgeon |
| Abstract: | Increased competition for viewers’ time is threatening the viability of public-service broadcasters (PSBs) around the world. Changing regulations regarding advertising minutes might increase revenues, but little is known about the structure of advertising demand. To address this problem, we collect a unique dataset on monthly impacts (quantities) and prices of UK television channels between 2002 and 2009 to estimate the (inverse) demand for advertising on both public and commercial broadcasters. We find that increasing PSB advertising minutes to the level permitted for non-PSBs would increase PSB and industry revenue by 10.5% and 6.7%. |
| Keywords: | Advertising, public service broadcasting, television markets, inverse demand |
| JEL: | D2 L1 L5 M3 |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:zur:econwp:268&r=ind |
| By: | Samuel de Haas (Justus-Liebig-University Giessen); Daniel Herold (Justus-Liebig-University Giessen); Jan T. Schaefer (Justus-Liebig-University Giessen) |
| Abstract: | Aldi, the biggest discounter in Germany, started to systematically extend shopping hours of its stores in 2016. We interpret the decision to extend opening hours of a specific Aldi store as entry into a new market. By using a novel data set containing the opening hours of nearly all German grocery retailers, we find that consumer and firm learning infl uence that decision. The presence of a nearby Aldi already opened longer increases the probability that a given Aldi extends its opening hours. However, if a nearby competitors store is short opened, the probability that Aldi extends opening hours decreases. |
| Keywords: | Shopping hours, Retailing, Coordination, Market Entry |
| JEL: | L22 L41 L81 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201751&r=ind |
| By: | Marcel Boyer |
| Abstract: | Pricing copyrighted works or assets so that creators are fairly compensated, while users can benefit from the digital economy given the information good character of such works has always been a difficult task. Doing it in the digital era is even more challenging. Striking that balance and determining the proper royalty level and the efficient rate base require that the competitive market value of such copyright in musical works and sound recordings be ascertained. I review some of the challenges and pitfalls in adequately framing the issues, and review an approach to infer the competitive market value of music in commercial terrestrial/Hertzian radio, satellite radio and interactive music streaming services from choices of operators in those industries. The resulting royalty formulas and payments are embedded into and discussed through the economics of public policy towards culture (the elephant in the room). An Appendix presents the main characteristics of music copyright structures in different jurisdictions. |
| Keywords: | Music copyrights,Intellectual property, |
| Date: | 2017–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2017s-14&r=ind |