Author: Bart J. Wilson
Publisher:
ISBN:
Category : Business cycles
Languages : en
Pages : 32

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Book Description

Author: Federal Trade Federal Trade Commission
Publisher: CreateSpace
ISBN: 9781514157275
Category :
Languages : en
Pages : 54

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Book Description
This study develops and tests implications of an oligopoly pricing model. The model involves capacity investments that are made before demand is revealed and pricing decisions that are made after demand is known. The model predicts that during a demand expansion the short run competitive price is a pure strategy Nash equilibrium, but in a recession firms set prices above the competitive price. Thus, price markups over the competitive price are countercyclical. Prices set during a recession are more variable than prices set during expansionary periods, because firms use mixed strategies for prices in recessions. This model is confronted with data from U.S. manufacturing industries. The empirical analysis utilizes a time series switching regime filter to test the unique predictions of the model, namely that (1) price changes are more variable in recessions than in expansions and (2) the form of the distribution of price changes differs between recessionary and expansionary regimes. Fourteen out of fifteen industries have fluctuations consistent with this oligopoly pricing model. The data is also analyzed to compare the predictions of this model with those of an optimal collusion model.

Author: Cinthia Mazo-Gluzman
Publisher:
ISBN:
Category :
Languages : en
Pages : 262

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Book Description

Author: Albert N. Link
Publisher: Irwin Professional Publishing
ISBN:
Category : Business & Economics
Languages : en
Pages : 210

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Book Description

Author: Leonard W. Weiss
Publisher: MIT Press (MA)
ISBN: 9780262231435
Category : Business & Economics
Languages : en
Pages : 290

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Book Description
Does seller concentration in a market raise prices? Many attempts have been made to test this classic hypothesis of oligopoly theory, none of them convincing. Leonard Weiss and his colleagues have devised and applied a systematic set of direct tests of the concentration price hypothesis. In an innovative series of empirical studies, they examine the effect of concentration on price for the same item sold in markets that vary because of space, time, or transaction. They conclude that concentration does indeed tend to raise price. Studies in the book's first part test specific aspects of the concentration price hypothesis. These include a case study of Portland cement deregulated fares, the relation between change in price and change in concentration in the US and in the EEC, the effect of the numbers of bidders in auctions, and the effects of concentration on wages. The book's second part brings together for the first time previously published and widely scattered studies of the concentration price relationship in advertising media, retailing, the railroads, livestock purchasing, and banking. Viewed together, they provide powerful support for the role of concentration in determining price. Leonard W. Weiss is Professor of Economics at the University of Wisconsin, Madison.P>

Author: Miguel Jimenez
Publisher: Routledge
ISBN: 1317512103
Category : Business & Economics
Languages : en
Pages : 113

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Book Description
This book presents several pieces of empirical work which disentangle why the standard measure of productivity growth used in macroeconomics turn out to be procyclical for American manufacturing industries. Procyclical productivity is an essential feature of business cycles because of its important implications for macroeconomic modelling. The author explains why traditional Keynesian theories of the business cycle do not explain satisfactorily why productivity is procyclical, and argues that the force of technology for generating economic cycles is much more important than that of the management or mismanagement of monetary or fiscal policies. This book is aimed at those working in empirical macroeconomics but also industrial economics.

Author: Vivek Ghosal
Publisher:
ISBN:
Category : Competition
Languages : en
Pages : 68

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Book Description

Author: Geoffrey Hoyt Moore
Publisher: Ballinger Publishing Company
ISBN:
Category : Business & Economics
Languages : en
Pages : 496

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Book Description

Author:
Publisher:
ISBN:
Category : United States
Languages : en
Pages : 124

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Book Description

Author: Mark Bils
Publisher:
ISBN:
Category : Business cycles
Languages : en
Pages : 55

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Book Description
The importance of sticky prices in business cycle fluctuations has been debated for many years. But we argue, based on a large empirical literature from the 1950's and 60's, that it is necessary to distinguish the response of price to an increase in factor prices from its response to an increase in marginal cost generated by an expansion in production. Consistent with that earlier literature, we find for 450 U.S. manufacturing industries that prices do respond more to increases in costs driven by changes in factor prices than to increases in marginal cost precipitated by expansions in output. We explore two models that can potentially explain these findings. Both break the link between price and marginal cost, thereby generating what one might naively interpret as average-cost pricing. The first is driven by firms pricing to limit entry. The second is driven by firms pricing to limit non-price competition within their market