Commitment, vertical restraints, and dynamic pricing of durable goods
Abstract/Contents
- Abstract
- Fixed price agreements are common in book markets. The agreements are industry wide and let the publisher set the retail price for a limited period. A natural experiment in the Norwegian book market weakened the vertical restraints in the Norwegian fixed price agreement. The fixed price period was shortened and the price restraint was softened to allow some retailer discounting. Two pronounced changes in the sales followed: The prices unravelled, and demand shifted from early at high prices to later at lower prices. The observed changes are not directly consistent with the traditional rationales for resale price maintenance, but instead show a loss of commitment. The commitment effects are quantified in a dynamic market equilibrium model with forward looking demand side and a forward looking supply side with a vertical structure at parameters estimated from the data. The analysis estimates the commitment effect of the fixed price agreement to be on the order of 2% beyond what resale price maintenance alone can explain.
Description
| Type of resource | text |
|---|---|
| Form | electronic; electronic resource; remote |
| Extent | 1 online resource. |
| Publication date | 2015 |
| Issuance | monographic |
| Language | English |
Creators/Contributors
| Associated with | Daljord, Øystein |
|---|---|
| Associated with | Stanford University, Graduate School of Business. |
| Primary advisor | Nair, Harikesh S. (Harikesh Sasikumar), 1976- |
| Thesis advisor | Nair, Harikesh S. (Harikesh Sasikumar), 1976- |
| Thesis advisor | Benkard, C. Lanier |
| Thesis advisor | Hartmann, Wesley R. (Wesley Robert), 1973- |
| Advisor | Benkard, C. Lanier |
| Advisor | Hartmann, Wesley R. (Wesley Robert), 1973- |
Subjects
| Genre | Theses |
|---|
Bibliographic information
| Statement of responsibility | Øystein Daljord. |
|---|---|
| Note | Submitted to the Graduate School of Business. |
| Thesis | Thesis (Ph.D.)--Stanford University, 2015. |
| Location | electronic resource |
Access conditions
- Copyright
- © 2015 by Oeystein Sigvald Daljord
- License
- This work is licensed under a Creative Commons Attribution Non Commercial 3.0 Unported license (CC BY-NC).
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