Competition in the presence of individual demand uncertainty

Möller, Marc; Watanabe, Makoto (2016). Competition in the presence of individual demand uncertainty. The RAND Journal of Economics, 47(2), pp. 273-292. Wiley 10.1111/1756-2171.12127

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This article offers a tractable model of (oligopolistic) competition in differentiated product markets characterized by individual demand uncertainty. The main result shows that, in equilibrium, firms offer advance purchase discounts and that these discounts are larger than in the monopolistic benchmark. Competition reduces welfare by increasing the fraction of consumers who purchase in advance, that is, without (full) knowledge of their preferences.

Item Type:

Journal Article (Original Article)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Economics

UniBE Contributor:

Möller, Marc

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics

ISSN:

1756-2171

Publisher:

Wiley

Language:

English

Submitter:

Eva Marina Zuberbühler

Date Deposited:

11 Jul 2017 15:18

Last Modified:

11 Jul 2017 15:18

Publisher DOI:

10.1111/1756-2171.12127

BORIS DOI:

10.7892/boris.93186

URI:

https://boris.unibe.ch/id/eprint/93186

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