In a mature water market with many active buyers and sellers and with a free flow of information about supply, demand and prices paid, prices should not vary greatly at any given time. Willing buyers should always be prepared to pay the going price set by the most efficient and highest value producing irrigators. This paper will analyse the prices paid in two water markets in Australia and iden...

We study a framework where two duopolists compete repeatedly in prices and where chosen prices potentially affect future market shares, but certainly do not affect current sales. This assumption of consumer inertia causes (noncooperative) coordination on high prices only to be possible as an equilibrium for low values of the discount factor. In particular, high discount factors increase opportu...

This paper studies a dynamic model of perfectly competitive price posting under demand uncertainty. Firms must produce output in advance. After observing aggregate sales in prior periods, firms post prices for their unsold output. Consumers arrive at the market in random order, observe the posted prices, and either purchase at the lowest available price or delay their purchase decision. Every s...

In this paper we make use of detailed, transaction-level data on automobile purchases and monthly, ZIP-code level data on retail gasoline prices to investigate the effect of fuel prices on four aspects of automobile purchasing in the U.S.: market shares, new car prices, trade-in utilization, and new car inventories. We find statistically and economically significant effects in all four aspects,...

OBJECTIVES Price is a key obstacle for consumer access to essential drugs, especially in developing countries. This study sought to compare the retail prices of essential drugs on the private market in Brazil with that of two international pricing standards. METHODS The retail price of all drugs on Brazil's Essential Drugs List, July 2000 edition, were compared to the retail price of the same...

UMIST 2002 PDF Version 2 Acknowledgments I would like to thank my supervisor, Dr Daniel Kirschen, for his valuable guidance and constant support. Abstract Conventional Economic Modelling (CEM) can be successfully employed to describe different financial equilibria. Its ability, though, to provide insights into the strategic behaviour of generating companies competing in the new, restructured el...

Timber market and forest product market are linked and integrated through prices of their own. In this study, the presence of price transmission asymmetry is investigated for wood products sector in southern United States. Threshold cointegration and an asymmetric error correction model are employed to analyze the price dynamics between prices of standing timber, delivered timber and also two r...

We examine price competition under product-specific network effects, in a duopoly where the products are differentiated horizontally and vertically. When consumers’ expectations are not affected by prices, firms may share the market equally, or one firm (possibly even the low-quality one) may capture the entire market. When product qualities are different, we may also have interior asymmetric e...

We study a framework where two duopolists compete repeatedly in prices and where chosen prices potentially affect future market shares, but certainly do not affect current sales. This assumption of consumer inertia causes (noncooperative) coordination on high prices only to be possible as an equilibrium for low values of the discount factor. In particular, high discount factors increase opportu...

This paper uses the framework in Wolak (2003a,b and 2007) and data on half-hourly offer curves and market-clearing prices and quantities from the New Zealand wholesale electricity market over the period January 1, 2001 to June 30, 2007 to characterize how the four large suppliers in this imperfectly competitive industry exercise market power. To accomplish this we introduce half-hourly measures...