WebMay 30, 2024 · The well-known double marginalization problem understates the inefficiencies arising from vertical relations in consumer search markets where consumers are uninformed about the wholesale prices … Expand WebOther articles where Diamond paradox is discussed: Peter A. Diamond: …price became known as the Diamond paradox. Along with Mortensen and Pissarides, Diamond then applied these concepts to the labour market to identify and explain situations in which high unemployment rates coexist with many job vacancies. In 2010–11 he was nominated …
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WebWith consumer search, an equilibrium wholesale contract always exists (even if retailers hold passive beliefs) overcoming the opportunism problem and is always characterized by some fixed fee. ... "Consumer Search and Double Marginalization," American Economic Review, American Economic Association, vol. 105(6), pages 1683-1710, June. Maarten ... WebApr 8, 2024 · The consumer-friendly action implemented by the foreign upstream firm leads to adequate consumer welfare and social welfare, which mitigates the government’s political hostility. ... Search Text. Search Type ... the pass-through rates are calculated to cover the main interests in a double marginalization problem. It is shown that an … scary beer
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WebConsumer search provides a monopoly manufacturer with an additional incentive to increase its price, worsening the double marginalization problem and lowering the … WebThe worsening of the double marginalization problem can be understood as fol-lows. Consumers' optimal search strategies in the form of a reservation price are based on a conjectured level of the wholesale price. If the manufacturer chooses a wholesale price that is higher than the conjectured level, consumers do not adjust their reservation price. WebJan 18, 2024 · Search in: Advanced search. Applied Economics Letters Volume 30, 2024 - Issue 7 ... total profits, consumer surplus or social surplus. Just as in the symmetric case, both the manufacturer and the retailer cooperatively choose higher degrees of social concern than under a non-cooperative framework and these choices completely solve … scary bedroom decor