An agent-based model of price flexing by chain-store retailers

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F12%3A00060881" target="_blank" >RIV/00216224:14560/12:00060881 - isvavai.cz</a>

Výsledek na webu

—

DOI - Digital Object Identifier

—

Jazyk výsledku

angličtina

Název v původním jazyce

An agent-based model of price flexing by chain-store retailers

Popis výsledku v původním jazyce

This paper investigates the effects of local price flexing on market structure and welfare in the supermarket sector. It presents an agent-based model of a~sector with two chain-store retailers in which the number and location of stores and prices charged by the stores are determined endogenously. The outcome in which all the stores within each chain charge the same price is compared to the situation in which each store sets prices according to local market conditions. The paper finds that local pricingreduces the number of stores and total welfare in the market. Furthermore, local pricing is more likely to increase the average prices and total revenue in the market, if the reservation price of consumers is high relative to the equilibrium price underuniform pricing. In this situation, local pricing is likely to reduce not only total welfare but also aggregate consumer surplus in the market.

Název v anglickém jazyce

An agent-based model of price flexing by chain-store retailers

Popis výsledku anglicky

This paper investigates the effects of local price flexing on market structure and welfare in the supermarket sector. It presents an agent-based model of a~sector with two chain-store retailers in which the number and location of stores and prices charged by the stores are determined endogenously. The outcome in which all the stores within each chain charge the same price is compared to the situation in which each store sets prices according to local market conditions. The paper finds that local pricingreduces the number of stores and total welfare in the market. Furthermore, local pricing is more likely to increase the average prices and total revenue in the market, if the reservation price of consumers is high relative to the equilibrium price underuniform pricing. In this situation, local pricing is likely to reduce not only total welfare but also aggregate consumer surplus in the market.

Druh

D - Stať ve sborníku

CEP obor

AH - Ekonomie

OECD FORD obor

—

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2012

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

Proceedings of the 30th International Conference Mathematical Methods in Economics 2012

ISBN

9788072487790

ISSN

—

e-ISSN

—

Počet stran výsledku

6

Strana od-do

461-466

Název nakladatele

Silesian University in Opava, School of Business Administration in Karviná

Místo vydání

Karviná

Místo konání akce

Karviná

Datum konání akce

11. 9. 2012

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

—