Do Low - Price Guarantees Facilitate Do Low - Price
نویسنده
چکیده
We examine the role low-price guarantees allegedly play in supporting supracompetitive prices. We find that when firms can commit to matching or beating any lower price announced by a competitor, all Nash equilibria yield Bertrand selling prices. This result casts doubt on the robustness of the conclusions of models which restrict attention to meet-the-competition clauses only. JEL Classification Code: D43, L13,
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