nep-mkt New Economics Papers
on Marketing
Issue of 2014‒08‒16
four papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Search and Ripoff Externalities By Mark Armstrong
  2. Net Neutrality and the Incentives (Not) to Exclude Competitors By Dewenter, Ralf; Rösch, Jürgen
  3. Les effets induits de la construction de la LGV SEA pour les départements traversés : une analyse intermédiaire des modes de vie et de consommation des compagnons. By Amandine Lempereur; Etienne Fouqueray
  4. Product Innovation in Response to Environmental Standards and Competitive Advantage: A Hedonic Analysis of Refrigerators in the Japanese Retail Market By Kimitaka Nishitani; Munehiko Itoh

  1. By: Mark Armstrong
    Abstract: This paper surveys models of markets in which some consumers are "savvy" while others are not.� We discuss when the presence of savvy consumers improves the deals available to non-savvy consumers in the market (the case of search externalities), and when the non-savvy fund generous deals for savvy consumers (ripoff externalities).� We also discuss when the two groups of consumers have aligned or divergent views about market interventions.� The analysis covers two overlapping families of models: those which examine markets with price/quality dispersion, and those which exhibit forms of consumer hold-up.
    Keywords: Consumer protection, consumer search, price dispersion, hold-up, add-on pricing
    JEL: D03 D18 D43 D83
    Date: 2014–07–29
  2. By: Dewenter, Ralf (Helmut Schmidt University, Hamburg); Rösch, Jürgen (Helmut Schmidt University, Hamburg)
    Abstract: This paper analyses the incentives of a vertical integrated Internet service provider (ISP) to block competitors from content markets. Using a simple model we find that the ISP does not block competing content providers as long as the contents are differentiated sufficiently. Exclusion only takes place when the competitor offers perfect homogeneous content and the ISP has a local monopoly over its Internet access customers or if network effects are strong. In this case, however, the abuse of market power can at least in Europe be prohibited by competition authorities. That is, according to our model there is no need for a regulation of net neutrality.
    Keywords: net neutrality; competition; Internet service providers
    JEL: D40 K20 L12 L82 L86
    Date: 2014–07–28
  3. By: Amandine Lempereur (CRIEF - Centre de Recherche sur l'Intégration Economique et Financière - Université de Poitiers); Etienne Fouqueray (CRIEF - Centre de Recherche sur l'Intégration Economique et Financière - Université de Poitiers)
    Abstract: LISEA a mis en place un observatoire socio-économique dont les principaux objectifs sont de participer à l'argumentaire national sur les effets constatés des Lignes à Grande Vitesse ferroviaires et d'exposer aux acteurs " locaux " les effets territoriaux, économiques et sociaux de la LGV SEA Tours-Bordeaux. Ses travaux s'organisent autour de six axes : 1. Effets " chantier ", 2. Offre de transport et mobilité, 3. Effets " gare LGV ", 4. Dynamiques métropolitaines et territoriales, 5. Tourisme et LGV, 6. Stratégies des acteurs et organisations. L'axe 1 interroge les effets sur l'économie des territoires traversés de la construction de la ligne. Trois thématiques guident le travail de recherche : Entreprises et sous-traitance, Emploi et formation et Lieux de vie et lieux de consommation. La présente synthèse s'inscrit dans le cadre de la thématique Lieux de vie et lieux de consommation. Les résultats présentés sont issus d'une première enquête réalisée auprès de compagnons du projet LGV SEA Tours-Bordeaux. Ils apportent des éléments de réponse quant aux effets pour les départements traversés par la ligne SEA des modes de vie et de consommation de ces personnels. Ces résultats contribuent à mesurer l'effet induit pour les territoires traversés. D'autres enquêtes et d'autres traitements viendront compléter ces travaux d'ici la fin de l'année 2014.
    Keywords: retombées économiques, consommation, construction, infrastructure de transport, territoire
    Date: 2014–07–22
  4. By: Kimitaka Nishitani (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan); Munehiko Itoh (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)
    Abstract: The purpose of this study is to analyze whether a manufacturer's product innovation in response to environmental standards produces a competitive advantage, as the Porter hypothesis suggests. If a product with environmentally friendly attributes that are innovated in response to environmental standards is preferred in the market, the product can receive a price premium for its attributes. The main findings from our hedonic price regression for refrigerators, using Japanese retail market data during the period 1998–2012, are as follows. First, the attribute-adjusted refrigerator price has decreased drastically in last 15 years, which implies that the fundamental value of "refrigerating" has been commoditized. Second, price premiums are found for products that have been innovated in response to environmental standards to be chlorofluorocarbon (CFC)-free and use energy more efficiently. Third, the price premiums for these attributes show specific trends during this period. A CFC-free product initially received a high price premium; however, the premium decreased and became 0. On the other hand, although an energy-consumption-efficient product did not receive a high price premium initially, the price premium increased every time manufacturers faced new or revised environmental standards. These findings prove that product innovation in response to environmental standards can create a competitive advantage where product commoditization has occurred, and that the trends in the price premiums for environmentally friendly attributes are not unique for CFC-free and energy-consumption-efficient products.
    Keywords: Porter hypothesis, Environmental innovation, Hedonic price approach, POS data, CFC-free, Energy-consumption efficiency
    Date: 2014–07

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