We study the relationship between the pricing and advertising decisions in a channel where a national brand is competing with a private label. We consider a differential game that incorporates the carryover effects of brand advertising over time for both the manufacturer and the retailer and we account for the complementary and competitive roles of advertising. Analysis of the obtained equilibr...

We examine how product and pricing decisions of retail gasoline stations depend on local market demographics and the degree of competitive intensity in the market. We are able to shed light on the observed empirical phenomenon that proximate gasoline stations price very similarly in some markets, but very differently in other markets. Our analysis of product design and price competition between...

We investigate the effect of competitive entry on manufacturer and retailer pricing behavior. Since the observed price changes can be due to entry-induced changes in a) demand conditions or b) costs, c) manufacturer’s competitive behavior, or d) retailer’s competitive behavior, a robust empirical model should be able to parse out these four sources of price changes. In order to understand reali...

INTRODUCTION ................................................................................... 217 I. TEXT MESSAGE PRICING ......................................................... 218 A. History of Text Message Pricing ............................................ 218 B. Text Messaging Price Comparison ......................................... 220 II. TEXT MESSAGING MARKET BACKGROUND ...........

1 Public policy development for electricity restructuring emphasizes institutions for market operations in network systems. The different models present alternatives for the mix of responsibilities of the necessary system operator. Customer flexibility and choice require efficient pricing; inefficient pricing necessarily limits market flexibility. The analysis points to an integrated independen...

We study the e ciency property of responsive pricing, a scheme that propose to increase prices as a function of the level of capacity utilization in environments where traditional allocation schemes (e.g. competitive markets, auctions) cannot be implemented in practice. We show that although responsive pricing implements allocations that are arbitrarily close to full capacity utilization (no wa...

According to literature, penetration pricing is the dominant pricing strategy for network effect markets. In this paper we show that diffusion of products in a network effect market does not only vary with the set of pricing strategies chosen by competing vendors but also strongly depends on the topological structure of the customers' network. This stresses the inappropriateness of classical "i...

The main objective of this article is to describe the importance of relationship of various components of pricing methods for attaining competitive advantage in market. Pricing methods comprise of Product pricing methods and Service pricing methods. Generally the Product pricing methods consist of product, price, place and promotion and it is generally used for pricing methods of tangible goods...

According to literature, penetration pricing is the dominant pricing strategy for network effect markets. In this paper we show that diffusion of products in a network effect market does not only vary with the set of pricing strategies chosen by competing vendors but also strongly depends on the topological structure of the customers' network. This stresses the inappropriateness of classical "i...

We study three basic price competition games engaged in by an original equipment manufacturer (OEM) and its competitive original design manufacturer (ODM): a simultaneous pricing game, an OEM-pricingearly game, and an ODM-pricing-early game. The ODM provides contract manufacturing service to the OEM and competes with this OEM in the consumer market by selling self-branded products. We consider ...