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Strategic Effects Of Three-Part Tariffs Under Oligopoly, Yong Chao Jul 2013

Strategic Effects Of Three-Part Tariffs Under Oligopoly, Yong Chao

Yong Chao

The distinct element of a three-part tariff, compared with linear pricing or a two-part tariff, is its quantity target within which the marginal price is zero. This quantity target instrument enriches the firm's strategy set in dictating the competition to a specific level, even in the absence of usual price discrimination motive. With general differentiated linear demand system, the competitive effect of a three-part tariff in contrast to linear pricing depends on the degree of substitutability between products: competition is intensified when two products are more differentiated, yet softened when two products are more substitutable.


Latent Topic Analysis For Predicting Group Purchasing Behavior On The Social Web, Feng-Tso Sun, Martin Griss, Ole J. Mengshoel, Yi-Ting Yeh Jun 2013

Latent Topic Analysis For Predicting Group Purchasing Behavior On The Social Web, Feng-Tso Sun, Martin Griss, Ole J. Mengshoel, Yi-Ting Yeh

Ole J Mengshoel

Group-deal websites, where customers purchase products or services in groups, are an interesting phenomenon on the Web. Each purchase is kicked o#11;ff by a group initiator, and other customers can join in. Customers form communities with people with similar interests and preferences (as in a social network), and this drives bulk purchasing (similar to online stores, but in larger quantities per order, thus customers get a better deal). In this work, we aim to better understand what factors in influence customers' purchasing behavior for such social group-deal websites. We propose two probabilistic graphical models, i.e., a product-centric inference model (PCIM) …