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  • GAFFARD Jean-Luc (2)
  • NAPOLETANO Mauro (2)
  • IACOPETTA Maurizio (1)
  • BRADLEY Graham (1)
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  • Article (10)
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in MetroEconomica Publication date 2016-09
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We extend the Bertrand duopolistic competition to include captives. These are consumers that have no choice between the suppliers. Usual population of shoppers are modeled performing a sequential search in order to decide where to buy a homogenous good. These two simple departures from the original setup have sharp consequences. First, we find that duopolistic price competition is not robust to inclusion of captives. The equilibrium results starkly differ and the only possible equilibrium now includes duopolists charging monopolistic prices. Second, addition of sequential search introduces multiplicity of pure strategy Nash equilibria. In this setup, we observe perverse optimal response to competitor's price changes. Notably, we find that the firm might want to reduce the price in response to the competitor's price increase, which is at odds with the usual undercutting principle. Third, we investigate the behavior of equilibrium prices depending on the heterogeneity in consumer risk attitudes. We find that the higher consumer heterogeneity with respect to acceptance of risky gambles leads to higher prices in equilibrium.

in South Eastern Europe Journal of Economics Publication date 2018-09
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I argue that the impact of piracy engines for scholarly content on science depends on the nature of the research. Social sciences are more likely to reap benefits from such engines without inflicting much damage on journal publishers’ revenues. To validate the claim, I examine the data from illegal downloads of economics content from Sci-Hub over a five-month period. I conclude that: (a) the extent of piracy in economics is not pervasive; (b) downloads mostly occur in under-developed countries; (c) users pirate even content that is freely available online. As a result, publishers are n

Are current economic models well equipped to provide useful policy prescriptions? Many economists would have certainly answered, “yes” before the recent Global Recession. This economic crisis has not only demonstrated the importance of banking and financial markets for the dynamics of real economies. It has also revealed the inadequacy of the dominant theoretical framework. Standard models have indeed failed to forecast the advent of the crisis. In addition, they have been unable to indicate a therapy able to restore economic growth (...).

in Technological forecasting and social change Publication date 2018-12
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The rise of modern digital communication technologies, most notably electronic social networks, transforms structures through which consumers interact with one another. In this paper we distinguish between two channels through which product promotion affects sales. The direct channel always positively affects consumers' pre-purchase valuation. The indirect channel goes through word-of-mouth (WoM) and can be either positive or negative. The sentiment contained in WoM is generated by the complex interaction process and depends on the aggressiveness of the advertising campaign. We investigate the implications of the current changes in social network architectures for the effectiveness of the indirect channel. We show that changes in social structures have increased the efficiency of WoM across a host of industries. Our results call for “smart” advertising policies

in International Journal of Computational Economics and Econometrics Publication date 2017-01
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This paper examines the link between consumer interaction and innovation performance of firms. Consumer interaction is modelled as a network effect: consumers adapt their tastes in order to take into account the popularity of the submarket the product is traded on. Consumer interaction is shown to result in higher innovation incentives during the transitional dynamics for two types of industries. However, across these industries the firms benefiting from higher incentives are different. In one case larger firms are the ones gaining from consumer interaction, in the other case smaller firms collect gains.

in Revue de l'OFCE - Débats et politiques Publication date 2012-09
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This paper presents a model of asymmetric (S,s) pricing. We investigate implications of such a behavior for the effectiveness of the monetary policy. We discuss two types of asymmetric responses to monetary interventions. One is the symmetry in the responses to positive and negative monetary shocks. The other is the variance in responses to monetary shocks during booms and recessions. The conclusion is that first type of asymmetry can be attributed to the asymmetry in adjustment bands, while the second kind of asymmetry is a result of firm heterogeneity, and asymmetry of (S,s) bands does not contribute to it.

Examining the regional distribution of 15 different Greenhouse Gas Mitigation Practices (MPs) across Australia, we study the tendency for consumers to imitate visible pro-environmental behavior in their local region. While there is a great deal of variation in the specific type of MPs adopted by consumers located in the same region, ANOVA results suggest that they tend to adopt a similar number of MPs as their neighbours. Using discrete choice modelling, our results suggest that this is due to the peer adoption of certain visible MPs, such as using public transport or car-pooling, encouraging agents to adopt other types of visible MPs. However, the character of this spillover is limited in that visible pro-environmental behavior does not appear to influence the adoption of non-visible MPs. We also find that social imitation patterns help individuals overcome the observed gap between their stated concern about climate change and their propensity to act on this concern, known as the climate ‘value-action’ gap. Policy implications for designing effective green nudges are discussed.

À l'heure où la grogne monte, où les promesses de manifestation se multiplient, force est de constater qu'au-delà des solutions technologiques attendues et des politiques de soutien à l'innovation verte, la préservation de notre environnement passera forcément par une modification de nos habitudes les plus profondément ancrées. Ce Policy Brief présente les résultats d’une étude sur la connaissance des Français du changement climatique, sur leurs valeurs et les comportements adoptés comme réponses à celui-ci. Les résultats dressent le profil d’une nation inquiète au sujet du changement climatique, mais encore trop peu mobilisée. Le sentiment d’efficacité de nos actions est faible et l’idée est très répandue que la responsabilité d’agir face au changement climatique incombe aux autres (aux entreprises, aux gouvernements et à la communauté internationale) plutôt qu’aux individus eux-mêmes. Ces résultats laissent entrevoir des défis réels mais surmontables pour mobiliser les Français dans une révision durable de leurs comportements. Nous proposons trois recommandations qui devraient accompagner ce défi : ■ Premièrement, pour favoriser la prise de conscience de chacun, toute action de communication doit apparaître comme locale et concrète. Aussi, l’élaboration d’un plan d’action national pour une communication sur le changement climatique, toute campagne de publicité, aussi ambitieuse soit-elle, doit nécessairement se décliner aux spécificités locales. Une approche globale, uniforme et indifférenciée nous semble vouée à l’échec ; ■ Deuxièmement, il faut mettre en place un observatoire de la perception du changement climatique. Cet observatoire doit avoir pour objectif l’élaboration de plans de lutte contre les obstacles à l’innovation comportementale individuelle. Nous recommandons d’exploiter les événements climatiques extrêmes à des fins d’information, ceux-ci ayant un très fort impact sur la volonté des individus de réagir face à ce changement ; ■ Troisièmement, la réduction de l’écart entre la perception des risques et les comportements vertueux doit se baser sur l’action individuelle, et donc sur la responsabilisation de tout-un-chacun. Toutefois, la responsabilisation individuelle doit être appuyée par des propositions concrètes sur les comportements vertueux à suivre dont la publicité doit être assurée par la puissance publique.

in OFCE Briefing Paper Publication date 2012-03
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Are current economic models well equipped to provide useful policy prescriptions? Many economists would have certainly answered, “yes” before the recent Global Recession. This economic crisis has not only demonstrated the importance of banking and financial markets for the dynamics of real economies. It has also revealed the inadequacy of the dominant theoretical framework. Standard models have indeed failed to forecast the advent of the crisis. In addition, they have been unable to indicatea therapy able to restore economic growth.

in Journal of Evolutionary Economics Publication date 2016-03
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We review some of the literature at the intersection of innovation, financial markets, and economic growth. We explore two key questions: (i) How financial markets interact with innovation; (ii) what type of quality transformations are brought about by innovation. A special emphasis is given to questions that stem from the 2008 economic and financial crisis, and to subjects further developed in the articles collected in this issue.

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