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Measuring the Welfare of Intermediation in Vertical Markets
| Content Provider | Scilit |
|---|---|
| Author | Donna, Javier D. Pereira, Pedro Pires, Tiago Trindade, Andre |
| Copyright Year | 2018 |
| Description | Journal: SSRN Electronic Journal We empirically investigate the welfare of intermediaries in oligopolistic markets, where intermediaries offer additional services. We exploit the unique circumstance that, in our empirical setting, consumers can purchase from manufacturers or intermediaries. We specify an equilibrium model, and estimate it using product-level data. The demand includes consumers with costly search and channel-specific preferences. The supply includes two distribution channels. One features bargaining about wholesale prices between manufacturers and intermediaries, and price competition among intermediaries. The other is vertically integrated. The model is used to simulate counterfactuals, where intermediaries do not offer additional services. We find that intermediaries increase welfare. |
| Related Links | https://mpra.ub.uni-muenchen.de/90240/1/MPRA_paper_90240.pdf https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=3285205 |
| ISSN | 10914358 |
| e-ISSN | 15565068 |
| DOI | 10.2139/ssrn.3285205 |
| Journal | SSRN Electronic Journal |
| Language | English |
| Publisher | Elsevier BV |
| Publisher Date | 2018-12-10 |
| Access Restriction | Open |
| Subject Keyword | Journal: SSRN Electronic Journal Mathematical Social Sciences |
| Content Type | Text |
| Resource Type | Article |
| Subject | Public Health, Environmental and Occupational Health Psychiatry and Mental Health |