Theories of Dynamic Pricing
نویسنده
چکیده
The purpose of this paper is to estimate models for retail price of gasoline based on the prediction deriving from the recent infinitely repeated game theories, supergame theories. The prediction implies that both the future changes and the unexpected shock in the economic environment, where firms faces, do have an impact on the current retail price of gasoline. Using monthly time series data on Tokyo and Osaka for the 1990’s, this paper shows evidence consistent with the implication of the theories. Some evidence presented also suggests the behavior of retail prices has changed over the time period being examined.
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