For competing firms, we examine the optimal acquisition of information about a common uncertain cost factor to price a new product and the implications of this acquisition for different parties. We show that findings for the acquisition of demand information or the acquisition of either cost or demand information for quantity decisions do not extend to this case. For cost information with price...

Many purchases are unplanned and so do not fit comfortably within standard neoclassical consumer theory. We model such ”impulse” purchases by a simple reservation price rule used by impatient consumers. The equilibrium exhibits price dispersion in pure strategies, with lower price firms earning higher profits. The range of price dispersion increases with the number of firms: the highest price i...

We model firm pricing given consumers follow simple reservation price rules. Such reservation rules are rational when consumers are sufficiently impatient. The equilibrium exhibits price dispersion in pure strategies, with lower price firms earning higher profits. The range of price dispersion increases with the number of firms: the highest price is the monopoly one, while the lowest price tend...

This study models a joint pricing, inventory, and preservation decision-making problem for deteriorating items subject to stochastic demand and promotional effort. The generalized price-dependent stochastic demand, time proportional deterioration, and partial backlogging rates are used to model the inventory system. The objective is to find the optimal pricing, replenishment, and preservation t...