Seminars & Events
APL (Ajiken Power Lunch)
Price Competition in Product Variety Networks
APL
(Ajiken
Power
Lunch)
is
a
lunchtime
workshop
open
to
public,
including
IDE
staffs,
visiting
research
fellows,
IDEAS
students,
outside
researchers
and
graduate
students.
This
workshop
provides
a
platform
for
presentation
of
any
work
in
progress
where
we
can
discuss
in
either
English
or
Japanese.
Those
who
would
attend
a
seminar
are
asked
to
announce
yourself
to
receptionists
on
your
arrival
at
the
IDE
and
to
obtain
APL
Organizers'
signature
on
your
admission
card
after
the
seminar.
Date&time:
May 26, 2016. (Thursday) 14：00-15：30
Venue:
Theme:
Price Competition in Product Variety Networks
Abstract
We
develop
a
product-differentiated
model
where
the
product
space
is
a
network
defined
as
a
set
of
varieties
(nodes)
linked
by
their
degrees
of
substituability
(edges).
We
also
locate
consumers
into
this
network,
so
that
the
location
of
each
consumer
(node)
corresponds
to
her
“ideal”
variety.
We
show
that,
even
though
prices
need
not
to
be
strategic
complements,
there
exists
a
unique
Nash
equilibrium
in
the
price
game
among
firms.
Equilibrium
prices
are
determined
by
both
firms’
weighted
Bonacich
centralities
and
the
average
willingness
to
pay
across
consumers.
They
both
hinge
on
the
network
structure
of
the
firm-product
space.
We
also
investigate
how
local
product
differentiation
and
the
spatial
discount
factor
affect
the
equilibrium
prices.
We
show
that
these
effects
non-trivially
depend
on
the
network
structure.
In
particular,
we
find
that,
in
a
star-shaped
network,
the
firm
located
in
the
star
node
does
not
always
enjoy
higher
monopoly
power
than
the
peripheral
firms.
(Coauther
is
Professor
Yves
Zenou
in
Monash
University,
Melbourne,
Australia.)
Speaker：
Philip Ushchev (Higher School of Economics, Moscow, Russia)
Chair:
Languages:
English
KIM, Jiyoung E-mail：Jiyoung_Kim
LEI, Lei E-mail：Lei_Lei
OSADA, Noriyuki E-mail：Noriyuki_Osada