Multi-Seller Membership Pricing
Abstract
We study when and how the host organization of multiple sellers, such as a shopping mall, should subsidize or charge customers. Each seller provides a different product, sets her own price, and shares profit with the host according to their bargaining power. Equilibrium subsidy is indeed a multi-seller phenomenon. More bargaining power of the host relative to any seller, a less elastic demand for any seller, or a large cross-price elasticity of demand for the host favors a subsidy. Regardless, the host always charges a fee if the sum of the profit shares taken from sellers does not exceed 1.
Link to paper:
ssrn.com/abstract=2911722
Link to webpage:
www.nuffield.ox.ac.uk/people/profiles/ming-gao
Date:
14 May 2018, 12:00 (Monday, 4th week, Trinity 2018)
Venue:
Manor Road Building, Manor Road OX1 3UQ
Venue Details:
Seminar Room B
Speaker:
Ming Gao (Tsinghua University)
Organising department:
Department of Economics
Organisers:
Anne Pouliquen (University of Oxford),
Erin Saunders (University of Oxford)
Part of:
Postdoc & DPhil Workshop
Booking required?:
Not required
Audience:
Members of the University only
Editors:
Erin Saunders,
Anne Pouliquen,
Melis Clark
