Market structure and pricing - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-28T20:25:42+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 2023CC5C57LL1L13Digitalization: Prices of Goods and Services
https://www.bankofcanada.ca/2023/10/staff-discussion-paper-2023-27/
This paper outlines and assesses the various channels through which digitalization can affect prices of goods and services.2023-10-31T13:26:19+00:00enDigitalization: Prices of Goods and Services2023-10-31DigitalizationInflation and pricesMarket structure and pricingMonetary policyStaff Discussion Paper 2023-27https://www.bankofcanada.ca/wp-content/uploads/2023/10/sdp2023-27.pdfDigitalization: Prices of Goods and ServicesVivian ChuTatjana DahlhausChristopher HajzlerOctober 2023DD2EE3E31E5E52LL1L11Borrow Now, Pay Even Later: A Quantitative Analysis of Student Debt Payment Plans
https://www.bankofcanada.ca/2023/10/staff-working-paper-2023-54/
We investigate alternative student debt contracts that defer payments and ease the burden of student loans on US households by preserving disposable income early in borrowers’ lives. Our model shows substantial welfare gains from these contracts relative to existing plans and gains similar to the Biden administration's proposals but with a significantly lower cost.2023-10-27T08:59:08+00:00enBorrow Now, Pay Even Later: A Quantitative Analysis of Student Debt Payment Plans2023-10-27Asset pricingEconomic modelsFinancial marketsLabour marketsMarket structure and pricingStaff Working Paper 2023-54https://www.bankofcanada.ca/wp-content/uploads/2023/10/swp2023-54.pdfBorrow Now, Pay Even Later: A Quantitative Analysis of Student Debt Payment PlansMichael BoutrosNuno ClaraFrancisco GomesOctober 2023EE2GG5HH3Intermediary Market Power and Capital Constraints
https://www.bankofcanada.ca/2023/10/staff-working-paper-2023-51/
We examine how intermediary capitalization affects asset prices in a framework that allows for intermediary market power. We introduce a model in which capital-constrained intermediaries buy or trade an asset in an imperfectly competitive market, and we show that weaker capital constraints lead to both higher prices and intermediary markups.2023-10-04T14:39:48+00:00enIntermediary Market Power and Capital Constraints2023-10-04Financial institutionsMarket structure and pricingStaff Working Paper 2023-51https://www.bankofcanada.ca/wp-content/uploads/2023/10/swp2023-51.pdfStaff Working Paper 2023-51Jason AllenMilena WittwerOctober 2023DD4D40D44GG1G12G18G2G20LL1L10Competition 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 2023LL1L13L4L42L5L51Digitalization: Implications for Monetary Policy
https://www.bankofcanada.ca/2023/08/staff-discussion-paper-2023-18/
We explore the implications of digitalization for monetary policy, both in terms of how monetary policy affects the economy and in terms of data analysis and communication with the public.2023-08-15T12:03:16+00:00enDigitalization: Implications for Monetary Policy2023-08-15DigitalizationInflation and pricesMarket structure and pricingMonetary policyMonetary policy communicationsMonetary policy transmissionStaff Discussion Paper 2023-18https://www.bankofcanada.ca/wp-content/uploads/2023/08/sdp2023-18.pdfStaff Discussion Paper 2023-18Vivian ChuTatjana DahlhausChristopher HajzlerPierre-Yves YanniAugust 2023CC4C8EE3E31E32E5E52Flagship Entry in Online Marketplaces
https://www.bankofcanada.ca/2023/08/staff-working-paper-2023-41/
In this paper, we empirically study how flagship entry in an online marketplace affects consumers, the platform, and various sellers on the platform. We find flagship entry may benefit consumers by expanding the choice set, by intensifying price competition within the entry brand, and by improving consumer perception for parts of the platform.2023-08-15T11:52:26+00:00enFlagship Entry in Online Marketplaces2023-08-15Economic modelsMarket structure and pricingStaff Working Paper 2023-41https://www.bankofcanada.ca/wp-content/uploads/2023/08/swp2023-41.pdfFlagship Entry in Online MarketplacesGinger Zhe JinZhentong LuXiaolu ZhouLu FangAugust 2023DD4LL1L8The contribution of firm profits to the recent rise in inflation
https://www.bankofcanada.ca/2023/08/staff-analytical-note-2023-12/
We measure the contribution to inflation from the growth in markups of Canadian firms. The dynamics of inflation and markups suggest that changes in markups could account for less than one-tenth of inflation in 2021. Further, they suggest that peak inflation was driven primarily by changes in the costs of firms.2023-08-01T12:00:51+00:00enThe contribution of firm profits to the recent rise in inflation2023-08-01Do hedge funds support liquidity in the Government of Canada bond market?
https://www.bankofcanada.ca/2023/08/staff-analytical-note-2023-11/
While Government of Canada bond transactions of hedge funds are typically in the opposite direction to those of other market participants, during the peak period of market turmoil in March 2020, hedge funds sold these bonds, just as other market participants did. This shows that hedge funds can at times contribute to one-sided markets and amplify declines in market liquidity.2023-08-01T11:00:33+00:00enDo hedge funds support liquidity in the Government of Canada bond market?2023-08-01Reviewing Canada’s Monetary Policy Implementation System: Does the Evolving Environment Support Maintaining a Floor System?
https://www.bankofcanada.ca/2023/05/staff-discussion-paper-2023-10/
At the onset of the pandemic, the Bank of Canada transitioned its framework for monetary policy implementation from a corridor system to a floor system, which it has since decided to maintain. We provide a comprehensive analysis of both frameworks and assess their relative merits based on five key criteria that define a sound framework.2023-05-15T11:57:08+00:00enReviewing Canada’s Monetary Policy Implementation System: Does the Evolving Environment Support Maintaining a Floor System?2023-05-15Market structure and pricingMonetary policy implementationPayment clearing and settlement systemsStaff Discussion Paper 2023-10https://www.bankofcanada.ca/wp-content/uploads/2023/05/sdp2023-10.pdfReviewing Canada’s Monetary Policy Implementation System: Does the Evolving Environment Support Maintaining a Floor System?Toni GravelleRon MorrowJonathan WitmerMay 2023DD4D47EE4E42E5E58