Artikel
All-pay competition with captive consumers
We study a game in which two firms compete in quality to serve a market consisting of consumers with different initial consideration sets. If both firms invest below a certain threshold, they only compete for those consumers already aware of their existence. Above this threshold, a firm is visible to all and the highest investment attracts all consumers. On the one hand, the existence of initially captive consumers introduces an anti-competitive element: holding fixed the behavior of its rival, a firm with a larger captive segment enjoys a higher payoff from not investing at all. On the other hand, the fact that a firm’s initially captive consumers can still be attracted by very high quality introduces a pro-competitive element: a high investment becomes more profitable for the underdog when the captive segment of the dominant firm increases. The share of initially captive consumers therefore has a non-monotonic effect on the investment levels of both firms and on consumer surplus. We relate our findings to competition cases in digital markets.
- Sprache
-
Englisch
- Erschienen in
-
Journal: International Journal of Industrial Organization ; ISSN: 1873-5703 ; Volume: 75 ; Year: 2021 ; Pages: -- ; Amsterdam: Elsevier
- Klassifikation
-
Sozialwissenschaften, Soziologie, Anthropologie
- Thema
-
consideration set
regulation
all-pay auction
endogenous prize
digital markets
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Foucart, Renaud
Friedrichsen, Jana
- Ereignis
-
Veröffentlichung
- (wer)
-
Elsevier
ZBW - Leibniz Information Centre for Economics
- (wo)
-
Amsterdam
- (wann)
-
2021
- DOI
-
doi:10.1016/j.ijindorg.2021.102709
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Artikel
Beteiligte
- Foucart, Renaud
- Friedrichsen, Jana
- Elsevier
- ZBW - Leibniz Information Centre for Economics
Entstanden
- 2021
Ähnliche Objekte (12)
All-pay competition with captive consumers
Consumers' willingness to pay for electricity service attributes: A discrete choice experiment in urban Indonesia
Determinants of willingness-to-pay for sustainable wine: Evidence from experimental auctions
Millennial wine consumers: Risk perception and information search
A healthy indulgence? Wine consumers and the health benefits of wine
Troubled by unequal pay rather than low pay: The incentive effects of a top management team pay gap
Millennial consumers' wine consumption and purchasing habits and attitude towards wine innovation
Transformational and transactional leadership, organizational support and environmental competition intensity as antecedents of intrapreneurial behaviors
The roles of competition on innovation efficiency and firm performance: Evidence from the Chinese manufacturing industry
Sovereign bond issues: Do African countries pay more to borrow?
Service quality and attitudinal loyalty: Consumers' perception of two major telecommunication companies in Oman
Role of intrinsic factors in impulsive buying decision: An empirical study of young consumers
All-pay competition with captive consumers
Consumers' willingness to pay for electricity service attributes: A discrete choice experiment in urban Indonesia
Determinants of willingness-to-pay for sustainable wine: Evidence from experimental auctions
Millennial wine consumers: Risk perception and information search
A healthy indulgence? Wine consumers and the health benefits of wine
Troubled by unequal pay rather than low pay: The incentive effects of a top management team pay gap
Millennial consumers' wine consumption and purchasing habits and attitude towards wine innovation
Transformational and transactional leadership, organizational support and environmental competition intensity as antecedents of intrapreneurial behaviors
The roles of competition on innovation efficiency and firm performance: Evidence from the Chinese manufacturing industry
Sovereign bond issues: Do African countries pay more to borrow?
Service quality and attitudinal loyalty: Consumers' perception of two major telecommunication companies in Oman
Role of intrinsic factors in impulsive buying decision: An empirical study of young consumers
All-pay competition with captive consumers
Consumers' willingness to pay for electricity service attributes: A discrete choice experiment in urban Indonesia
Determinants of willingness-to-pay for sustainable wine: Evidence from experimental auctions
Millennial wine consumers: Risk perception and information search
A healthy indulgence? Wine consumers and the health benefits of wine
Troubled by unequal pay rather than low pay: The incentive effects of a top management team pay gap
Millennial consumers' wine consumption and purchasing habits and attitude towards wine innovation
Transformational and transactional leadership, organizational support and environmental competition intensity as antecedents of intrapreneurial behaviors
The roles of competition on innovation efficiency and firm performance: Evidence from the Chinese manufacturing industry
Sovereign bond issues: Do African countries pay more to borrow?
Service quality and attitudinal loyalty: Consumers' perception of two major telecommunication companies in Oman