Economics Seminar Series : Toomas Hinnosaar (Collegio Carlo Alberto)

Monday 11 November 2019, 11:00am to 12:30pm

Venue

LUMS Lecture Theatre 3, LA1 4YX - View Map

Open to

Staff

Registration

Registration not required - just turn up

Event Details

This Seminar is hosted by the Economics Department

Toomas Hinnosaar will present a seminar on “Price Setting on a Network”

Abstract : Most products are produced and sold by supply chain networks, where an interconnected network of producers and intermediaries set prices to maximize their profits. I show that there exists a unique equilibrium in a price-setting game on a network. The key distortion reducing both total profits and social welfare is multiple-marginalization, which is magnified by strategic interactions. Individual profits are proportional to influentiality, which is a new measure of network centrality defined by the equilibrium characterization. The results emphasize the importance of the network structure when considering policy questions such as mergers or trade tariffs.

Contact Details

Name Caren Wareing
Email

c.wareing@lancaster.ac.uk

Telephone number

+44 1524 594222