Outside Options and the Failure of the Coase Conjecture
نویسندگان
چکیده
A buyer wishes to purchase a good from a seller who chooses a sequence of prices over time. In each period, the buyer can also exercise an outside option such as moving onto another seller. We show there is a unique equilibrium in which the seller charges a constant price in every period equal to the monopoly price against their residual demand. This result contravenes the Coase conjecture.
منابع مشابه
Outside Options and the Failure of the Coase Conjecture<xref ref-type="fn" rid="f1" ptype="faer1042656" citart="citart1"><sup></sup></xref>
A buyer wishes to purchase a good from a seller who chooses a sequence of prices over time. Each period the buyer can also exercise an outside option, abandoning their search or moving on to another seller. We show there is a unique equilibrium in which the seller charges a constant price in every period equal to the monopoly price, contravening the Coase conjecture. We then embed the singlesel...
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تاریخ انتشار 2011