# Tag Info

Accepted

### Why do low-budget films charge the same amount at the box office as super-high budget films?

Opportunity Cost of the Seats Once the movie is made the cost of production is sunk and irrelevant to the proper pricing of tickets. Only the marginal costs of serving an additional customer and the ...
• 15.9k
Accepted

### Can destruction be profitable?

It can be profitable for the monopolist to do so. For the conventional producer who is a price taker the profit objective function looks like this: $$\max_{q} \Pi^c$$ where $\Pi^c = P \cdot q - C(q)$....
• 15.9k
Accepted

### Collusion and number of firms

Iet's say we have n identical firms and an infinite horizon of time. The n firms sustaining the collusion, will find optimal to fix the same price $p_m$ where $p_m$ is the price of the monopoly level ...
• 235
Accepted

### Price dispersion in online retail

Yes, this has actually been quite an active area for research within the consumer search literature. As a starting point, I would recommend looking at the following: BAYE, M. R., AND J. MORGAN (2001):...
• 16.6k
Accepted

### Nash equilibrium of a Bertrand game with different marginal costs

Yes, there is no equilibrium in pure strategies. For any price charged by firm 2 above $c_1$, firm one could only best respond by charging the largest price that is strictly smaller. which is ...
• 9,814

### Books friendly to self-studying Industrial Organization

While taking Industrial Organization I remember working with: Strategies and games: theory and practice by Dutta Introduction to industrial organization by Cabral Industrial organization: theory and ...
• 775
Accepted

• 16.6k
Accepted

### Literature on the effects of third-party certification on industrial dynamics?

This is also a big theme in agriculturaland environmental economics given the amount of nutritional, healthy, organic and other labels that we see on food these days. Here are a few references to ...
• 2,330