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 MapOpen to
StaffRegistration
Registration not required - just turn upEvent 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 |
Telephone number |
+44 1524 594222 |