Three essays in applied microeconomic theory
type: CreativeWork
description: The first chapter of my dissertation characterizes how the strategic choices of product variety, quality and pricing by a brick and mortar store evolve in the face of stiffening competition from online retailers in the market. For many consumers, online purchases are imperfect substitutes for store purchases due to delayed delivery, the need for unfamiliar self-installation, etc. As online products become better substitutes and online competition intensifies, the store moves from socially-efficient provision of product qualities and varieties, to reducing the quality of its low quality products, next, to selective provision of high quality products, before returning to socially-efficient provision of product quality and product varieties. All the while, the physical store's profits decline, and it finally exits the market when the internet competition becomes so stiff that it drives operating profits below its fixed costs of operation. An extension explores outcomes when the store has an online portal, characterizing when the physical store appears to act as a loss leader. Chapter 2 analyzes the dynamics of positive and negative campaigning in primary and general elections, characterizing the strategic considerations that influence campaigning choices. Candidates devote resources to positive campaigning, which builds their reputation stocks, and to negative campaigning, which damages a rival's. An explanation is provided for why general campaigns are more negative than primary campaigns: in the general election, winning primary candidates benefit only from positive primary campaigning; and negative campaigning by a primary loser, impairs his party rival's chances. More generally, the impact of the (a) relative strengths of candidates (initial resources and reputations), (b) how much candidates care about winning vs just having their party win, and (c) the campaigning technology (effectiveness, decay in the effects of primary campaigning before the general election) …
abstract: The first chapter of my dissertation characterizes how the strategic choices of product variety, quality and pricing by a brick and mortar store evolve in the face of stiffening competition from online retailers in the market. For many consumers, online purchases are imperfect substitutes for store purchases due to delayed delivery, the need for unfamiliar self-installation, etc. As online products become better substitutes and online competition intensifies, the store moves from socially-efficient provision of product qualities and varieties, to reducing the quality of its low quality products, next, to selective provision of high quality products, before returning to socially-efficient provision of product quality and product varieties. All the while, the physical store's profits decline, and it finally exits the market when the internet competition becomes so stiff that it drives operating profits below its fixed costs of operation. An extension explores outcomes when the store has an online portal, characterizing when the physical store appears to act as a loss leader. Chapter 2 analyzes the dynamics of positive and negative campaigning in primary and general elections, characterizing the strategic considerations that influence campaigning choices. Candidates devote resources to positive campaigning, which builds their reputation stocks, and to negative campaigning, which damages a rival's. An explanation is provided for why general campaigns are more negative than primary campaigns: in the general election, winning primary candidates benefit only from positive primary campaigning; and negative campaigning by a primary loser, impairs his party rival's chances. More generally, the impact of the (a) relative strengths of candidates (initial resources and reputations), (b) how much candidates care about winning vs just having their party win, and (c) the campaigning technology (effectiveness, decay in the effects of primary campaigning before the general election) …
author: Ghosh, Meenakshi
language: en
keywords: Online Competition, Monopoly, Price Discrimination, Loss Leader, Quality Provision, Positive Campaigning, Negative Campaigning
date published: 2015-01-21T19:49:14Z
date modified: 2026-07-22T22:26:07Z
provider: University of Illinois - Urbana-Champaign
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: University of Illinois at Urbana-Champaign

PropertyValue
property ID: Handle
value: http://hdl.handle.net/2142/72893