Multi-Seller Membership Pricing
Abstract

We study when and how the host organization of multiple sellers, such as a shopping mall, should subsidize or charge customers. Each seller provides a different product, sets her own price, and shares profit with the host according to their bargaining power. Equilibrium subsidy is indeed a multi-seller phenomenon. More bargaining power of the host relative to any seller, a less elastic demand for any seller, or a large cross-price elasticity of demand for the host favors a subsidy. Regardless, the host always charges a fee if the sum of the profit shares taken from sellers does not exceed 1.

Link to paper:
ssrn.com/abstract=2911722

Link to webpage:
www.nuffield.ox.ac.uk/people/profiles/ming-gao
Date: 14 May 2018, 12:00 (Monday, 4th week, Trinity 2018)
Venue: Manor Road Building, Manor Road OX1 3UQ
Venue Details: Seminar Room B
Speaker: Ming Gao (Tsinghua University)
Organising department: Department of Economics
Organisers: Anne Pouliquen (University of Oxford), Erin Saunders (University of Oxford)
Part of: Postdoc & DPhil Workshop
Booking required?: Not required
Audience: Members of the University only
Editors: Erin Saunders, Anne Pouliquen, Melis Clark