Price Competition in Markets with Consumer Variety Seeking
نویسندگان
چکیده
منابع مشابه
Price Competition in Markets with Consumer Variety Seeking
We show that the non-cooperative equilibrium in a two-period duopoly with consumer variety-seeking may be the same as the collusive outcome in an otherwise identical market without variety-seeking. Specifically, our variety-seeking model implies tacit collusion between firms in both periods, and not just in the second period only as in the switching-cost model of Klemperer (1987a, 1987b), which...
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In many storable-goods markets, firms are often aware that consumers may strategically adjust purchase timing in response to expected price dynamics. For example, in periods when prices are low, consumers stockpile for future consumption. This paper investigates the dynamic impact of consumer stockpiling on competing firms’ strategic pricing decisions in differentiated markets. The necessity of...
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This paper proposes a model in which identical sellers of a homogenous product compete in both prices and price frames (i.e., ways to present price information). We model price framing by assuming that firms’ frame choices affect the comparability of their price offers: consumers may fail to compare prices due to frame differentiation, and due to frame complexity. In the symmetric equilibrium t...
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The dynamic price competition in a horizontally differentiated duopoly when consumers value previous market shares is analyzed. The conditions for the existence of stable Markov-Perfect Equilibrium(MPE) in linear strategies are established. When they exist, the optimal pricing policies suggest that a firm with a higher previous market share charges a higher price, all else equal. It is possible...
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ژورنال
عنوان ژورنال: Marketing Science
سال: 2009
ISSN: 0732-2399,1526-548X
DOI: 10.1287/mksc.1080.0434