Compatibility choice by multi-market firms

Article Abstract:

Compatibility of products by different vendors has a large effect on the product market. A change in the multi product or multi-market scope of a firm will create a strategic shift in compatibility choices. Both mergers and alliances impact the scope of products or product markets. A model is designed to explain the possible strategy shift of a merger or alliance resulting from feedback between the various markets served by the firm.

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Cheap talk price signaling in laboratory markets

Article Abstract:

The Dept. of Justice has filed an antitrust suit against eight airlines which allegedly raised fares after price negotiations on their shared computer network. The charge that the airlines conspired to raise fares was based on the non-binding price signals posted by the airlines on the shared computer network. The market impact of non-binding price signals is investigated using laboratory posted offer markets.

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Do lower search costs reduce prices and price dispersion?

Article Abstract:

A search model is presented to examine the impact of decrease in the search cost on price levels and price dispersion.

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