Monday 11 November 2019, 11:00am to 12:30pm
VenueLUMS Lecture Theatre 3, LA1 4YX - View Map
RegistrationRegistration not required - just turn up
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.
+44 1524 594222