L13 - Oligopoly and Other Imperfect Markets - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T13:11:00+00:00Testing Collusion and Cooperation in Binary Choice Games
https://www.bankofcanada.ca/2023/11/staff-working-paper-2023-58/
This paper studies the testable implication of players’ collusive or cooperative behaviour in a binary choice game with complete information. I illustrate the implementation of this test by revisiting the entry game between Walmart and Kmart.2023-11-27T11:56:12+00:00enTesting Collusion and Cooperation in Binary Choice Games2023-11-27Econometric and statistical methodsMarket structure and pricingStaff Working Paper 2023-58https://www.bankofcanada.ca/wp-content/uploads/2023/11/swp2023-58.pdfTesting Collusion and Cooperation in Binary Choice GamesErhao XieNovember 2023CC5C57LL1L13Competition for Exclusivity and Customer Lock-in: Evidence from Copyright Enforcement in China
https://www.bankofcanada.ca/2023/08/staff-working-paper-2023-43/
This paper studies the music streaming industry and argues that having exclusive rights granted by copyright law drives firms to offer exclusive content to lock in customers. I employ theoretical and descriptive empirical analysis, along with a dynamic structural model, to support the argument and explore policies for improving competition.2023-08-16T11:11:34+00:00enCompetition for Exclusivity and Customer Lock-in: Evidence from Copyright Enforcement in China2023-08-16Econometric and statistical methodsFirm dynamicsMarket structure and pricingStaff Working Paper 2023-43https://www.bankofcanada.ca/wp-content/uploads/2023/08/swp2023-43.pdfStaff Working Paper 2023-43Youming LiuAugust 2023LL1L13L4L42L5L51Cost Pass-Through with Capacity Constraints and International Linkages
https://www.bankofcanada.ca/2023/03/staff-working-paper-2023-16/
How are regional cost shocks passed through into global prices? We investigate the role of short-run capacity constraints and show that they can induce stark non-linearities in the pass-through. We highlight this effect for the market for ammonia, a commodity produced largely from natural gas.2023-03-10T09:52:52+00:00enCost Pass-Through with Capacity Constraints and International Linkages2023-03-10Climate changeEconometric and statistical methodsInflation and pricesInternational topicsStaff Working Paper 2023-16https://www.bankofcanada.ca/wp-content/uploads/2023/03/swp2023-16.pdfCost Pass-Through with Capacity Constraints and International LinkagesReinhard EllwangerHinnerk GnutzmannPiotr ŚpiewanowskiMarch 2023LL1L13L6L65QQ4Q40Q5Q54Vertical Bargaining and Obfuscation
https://www.bankofcanada.ca/2022/03/staff-working-paper-2022-13/
Is obscuring prices always bad for consumers? The answer depends on the market structure and on the negotiating power between manufacturers and retailers.2022-03-21T07:40:05+00:00enVertical Bargaining and Obfuscation2022-03-21Economic modelsMarket structure and pricingStaff Working Paper 2022-13https://www.bankofcanada.ca/wp-content/uploads/2022/03/swp2022-13.pdfVertical Bargaining and ObfuscationEdona ReshidiMarch 2022CC7C70LL1L13L4L42Trade and Market Power in Product and Labor Markets
https://www.bankofcanada.ca/2021/04/staff-working-paper-2021-17/
Trade liberalizations increase the sales and input purchases of productive firms relative to their less productive domestic competitors. This reallocation affects firms’ market power in their product and input markets. I quantify how the labour market power of employers affects the distribution and size of the gains from trade.2021-04-07T11:15:08+00:00enTrade and Market Power in Product and Labor Markets2021-04-07Economic modelsLabour marketsMarket structure and pricingProductivityTrade integrationStaff Working Paper 2021-17https://www.bankofcanada.ca/wp-content/uploads/2021/04/swp2021-17.pdfStaff Working Paper 2021-17Gaelan MacKenzieApril 2021DD4D43FF1F12F6JLL1L13Imperfect Banking Competition and Macroeconomic Volatility: A DSGE Framework
https://www.bankofcanada.ca/2021/03/staff-working-paper-2021-12/
How do banks adjust their loan rate markup in response to macroeconomic shocks?2021-03-12T13:36:34+00:00enImperfect Banking Competition and Macroeconomic Volatility: A DSGE Framework2021-03-12Business fluctuations and cyclesFinancial institutionsInterest ratesStaff Working Paper 2021-12https://www.bankofcanada.ca/wp-content/uploads/2021/03/swp2021-12.pdfStaff Working Paper 2021-12Jiaqi LiMarch 2021EE3E32E4E44GG2G21LL1L13Explaining the Interplay Between Merchant Acceptance and Consumer Adoption in Two-Sided Markets for Payment Methods
https://www.bankofcanada.ca/2019/08/staff-working-paper-2019-32/
Recent consumer and merchant surveys show a decrease in the use of cash at the point of sale. Increasingly, consumers and merchants have access to a growing array of payment innovations as substitutes for cash.2019-08-27T15:45:06+00:00enExplaining the Interplay Between Merchant Acceptance and Consumer Adoption in Two-Sided Markets for Payment Methods2019-08-27Bank notesDigital currencies and fintechEconometric and statistical methodsFinancial servicesStaff Working Paper 2019-32https://www.bankofcanada.ca/wp-content/uploads/2019/08/swp2019-32.pdfExplaining the Interplay Between Merchant Acceptance and Consumer Adoption in Two-Sided Markets for Payment MethodsKim HuynhGradon NichollsOleksandr ShcherbakovAugust 2019CC5C51LL1L13L15L8L81L9L96Inference in Games Without Nash Equilibrium: An Application to Restaurants’ Competition in Opening Hours
https://www.bankofcanada.ca/2018/12/staff-working-paper-2018-60/
This paper relaxes the Bayesian Nash equilibrium (BNE) assumption commonly imposed in empirical discrete choice games with incomplete information. Instead of assuming that players have unbiased/correct expectations, my model treats a player’s belief about the behavior of other players as an unrestricted unknown function. I study the joint identification of belief and payoff functions.2018-12-19T08:12:56+00:00enInference in Games Without Nash Equilibrium: An Application to Restaurants’ Competition in Opening Hours2018-12-19Econometric and statistical methodsMarket structure and pricingStaff Working Paper 2018-60https://www.bankofcanada.ca/wp-content/uploads/2018/12/swp2018-60.pdfInference in Games Without Nash Equilibrium: An Application to Restaurants, Competition in Opening HoursErhao XieDecember 2018CC5C57LL1L13L8L85Information Sharing and Bargaining in Buyer-Seller Networks
https://www.bankofcanada.ca/2016/12/staff-working-paper-2016-63/
This paper presents a model of strategic buyer-seller networks with information exchange between sellers. Prior to engaging in bargaining with buyers, sellers can share access to buyers for a negotiated transfer. We study how this information exchange affects overall market prices, volumes and welfare, given different initial market conditions and information sharing rules.2016-12-30T10:04:33+00:00enInformation Sharing and Bargaining in Buyer-Seller Networks2016-12-30Economic modelsFirm dynamicsMarket structure and pricingStaff Working Paper 2016-63https://www.bankofcanada.ca/wp-content/uploads/2016/12/swp2016-63.pdfInformation Sharing and Bargaining in Buyer-Seller NetworksSofia PriazhkinaFrank H. PageDecember 2016CC7C71C78DD2D21D4D43D8D85LL1L13Bank Screening Heterogeneity
https://www.bankofcanada.ca/2016/12/staff-working-paper-2016-56/
Production efficiency and financial stability do not necessarily go hand in hand. With heterogeneity in banks’ abilities to screen borrowers, the market for loans becomes segmented and a self-competition mechanism arises. When heterogeneity increases, the intensive and extensive margins have opposite effects.2016-12-13T11:58:20+00:00enBank Screening Heterogeneity2016-12-13Financial institutionsFinancial stabilityFinancial system regulation and policiesStaff Working Paper 2016-56https://www.bankofcanada.ca/wp-content/uploads/2016/12/swp2016-56.pdfBank Screening HeterogeneityThibaut DupreyDecember 2016GG1G14G2G21LL1L13