منابع مشابه
Price Competition with Consumer Confusion
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...
متن کاملPrice Competition and Consumer Confusion
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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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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We study a framework where two duopolists compete repeatedly in prices and where chosen prices potentially affect future market shares, but certainly do not affect current sales. This assumption of consumer inertia causes (noncooperative) coordination on high prices only to be possible as an equilibrium for low values of the discount factor. In particular, high discount factors increase opportu...
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ژورنال
عنوان ژورنال: Management Science
سال: 2013
ISSN: 0025-1909,1526-5501
DOI: 10.1287/mnsc.2013.1716