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Stefan Bühler
Title
Prof. Dr.
Last Name
Bühler
First name
Stefan
Email
stefan.buehler@unisg.ch
ORCID
Phone
+41 71 224 2303
Homepage
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1 - 10 of 22
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PublicationType: working paper
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PublicationDynamic Monopoly Pricing With Multiple Varieties: Trading UpThis paper studies dynamic monopoly pricing for a class of settings that includes multiple durable, multiple rental, or a mix of varieties. We show that the driving force behind pricing dynamics is the seller’s incentive to switch consumers—buyers and non-buyers—to higher-valued consumption options by lowering prices (“trading up”). If consumers cannot be traded up from the static optimal allocation, pricing dynamics do not emerge in equilibrium. If consumers can be traded up, pricing dynamics arise until all trading-up opportunities are exhausted. We study the conditions under which pricing dynamics end in finite time and characterize the final prices at which dynamics end.Type: working paper
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PublicationType: working paper
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PublicationConsumer ResistanceThis paper shows that reference-dependent preferences trigger consumer resistance and studies how such consumer behavior impacts pricing and cost communication. We show that consumer resistance reduces the pricing power and profit of the firm. We also show that consumer resistance may provide an incentive for the firm to engage in cost transparency. While cheap communication does not affect consumer behavior, we demonstrate that persuasive communication may increase sales and profit. Finally, we establish that a firm can benefit from operational transparency if cost is monotone increasing in the quality of the production process.
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PublicationRestructuring the Electricity Industry: Vertical Structure and the Risk of Rent Extraction( 2014)Boom, AnetteWe study the role of vertical structure in determining generating capacities and retail prices in the electricity industry. Allowing for uncertain demand, we compare three market configurations: (i) integrated monopoly, (ii) integrated duopoly with wholesale trade, and (iii) separated duopoly with wholesale trade. We find that equilibrium capacities and retail prices are such that welfare is highest (lowest) under separated (integrated) duopoly. The driving force behind this result is the risk of rent extraction faced by competing integrated Generators on the wholesale market. Our analysis suggests that vertical structure plays an important role in determining generating capacities and retail prices.
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PublicationType: working paper
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PublicationGlobalization and Vertical Structure: An Empirical InvestigationThis paper studies the effect of trade facilitation on vertical firm structure using plant-level data from Switzerland. Based on the Business Census and the Input-Output table, we first calculate a binary measure of vertical integration for all plants registered in Switzerland. We then estimate the effect of a Mutual Recognition Agreement with the European Union on the plants' probability of being vertically integrated. Adopting a difference-in-differences approach, we find that this policy change reduced the treated plants' probability of being vertically integrated by about 10 percent. Our results are consistent with recent work in international trade theory.
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PublicationTrade Liberalization and Growth: Plant-Level Evidence from SwitzerlandThis paper estimates the effect of trade liberalization on growth, using plant-level data from Switzerland. We employ a natural experiment framework to quantify the effect of a bundle of treaties liberalizing trade between Switzerland and the EU enacted in June 2002 ("Bilateral Agreements I") on the growth of Swiss plants. Using both a semi-parametric difference-in-differences and a matching approach, we find that the liberalization of trade increased the growth of affected plants by 1-2 percent during the first six years after liberalization. Our results suggest that trade liberalization has a relevant effect on growth.Type: working paper
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PublicationRestructuring Electricity When Demand is Uncertain : The Effects on Capacity Investments, Retail Prices and Welfare(Copenhagen Business School Working Paper No. 11-2006 (revised version), 2010)Boom, AnetteThis paper proposes a stylized model of the electricity industry taking the vertical structure of the industry into account. We examine the effects of restructuring on capacity investments, retail prices and welfare, allowing for uncertain demand. We consider the following market configurations: (i) integrated monopoly, (ii) integrated duopoly with wholesale trade, and (iii) separated duopoly with wholesale trade. We find that generators install sufficient capacity to serve retail demand (thus avoiding blackouts) in all configurations. Aggregate capacity levels and retail prices are such that the separated (integrated) duopoly with wholesale trade performs best (worst) in terms of welfare.Type: working paper
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PublicationDemand-Enhancing Investment in Mixed Duopoly(University of St. Gallen, Department of Economics Discussion Paper 2010- 16, 2010)Wey, SimonThis paper examines demand-enhancing investment and pricing in mixed duopoly. We analyze a model with differentiated products and reduced-form demand, making no assumptions on the relative efficiency of the public firm. First, we derive sufficient conditions for public investment to crowd out private investment. Second, we characterize the conditions under which individual investments (prices, respectively) in the mixed duopoly are higher (lower) than in the standard duopoly. Third, we show that with linear demand the public firm effectively disciplines the private firm, inducing an improvement in its price-quality ratio relative to the standard duopoly.Type: working paper
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