Among all the topics about price dispersion, asymmetric price dispersion between online and o¤-line channels and asymmetric pricing across traditional retailers, e-tailers, and multichannel retailers have received the most extensive empirical examination in the literature. However, in many cases, these studies generate contradictory results. This paper jointly models traditional retailer, e-tai...

Maskin and Riley (Games Econ Behav 45:395–409, 2003) and Lebrun (Games Econ Behav 55:131–151, 2006) prove that the Bayes–Nash equilibrium of first-price auctions is unique. This uniqueness requires the assumption that a buyer never bids above his value (which amounts to the elimination of weakly dominated strategies). We demonstrate that, in asymmetric first-price auctions (with or without a mi...

We study optimal price setting by a monopolist in an in…nite horizon model with stochastic costs, moderate in‡ation, and costly price adjustment. For realistic parameters, chosen to replicate observed frequencies of price changes, the model …ts numerically several empirical regularities. In particular, price reductions are larger but less frequent than price increases, and prices respond consid...

Using a model of dynamic price competition, this paper provides an explanation from the supply side for the well-established observation that retail prices adjust faster when input costs rise than when they fall. The opportunity of profitable storing for the next period induces competitive firms to immediately increase their prices in anticipation of higher future input costs. This relaxes comp...

Article history: Received 1 November 2009 Available online 3 March 2011 JEL classification: D44 C63 C72 D82

We use perturbation analysis to obtain explicit approximations of the equilibrium bids in asymmetric first-price auctions with n bidders, in which bidders’ valuations are independently drawn from different distribution functions. Several applications are presented: explicit approximations of the seller’s expected revenue, the maximal bid, the optimal reserve price, inefficiency, and a consequen...

Employing the dataset of WTI oil spot price and stock price index in China Brazil, India, US, German, France, UK and Japan, this paper obtains five subinterval of whole sample range through a nonparametric multiple change point algorithms. Furthermore, it analyses dependence between oil spot price and stock price index through copula model and computes the value of VaR and ES based on simulatio...

We study a dynamic competitive equilibrium model with asymmetric information about time-variant aggregate risk aversion. We show that there still exists a linear price function in out model, a nice result in the other asymmetric information competitive equilibrium models. Furthermore, we show that in our model, asymmetric information play a role in the long run risk premium. When the proportion...

This paper analyzes the dynamic effects of anticipated and unanticipated foreign price increases of imported raw materials for a small two-country monetary union, which is simultaneously characterized by asymmetric wage adjustments and asymmetric interest rate sensitivities of private absorption. It is shown that both types of input price disturbances lead to temporary divergences in output dev...