We develop a continuous-time dynamic model of competition with switching costs to show that in a relatively simple Markov Perfect equilibrium, the dominant …rm concedes market share by charging higher prices than the smaller …rm. In the short-run, switching costs might have two types of anti-competitive e¤ects: …rst, higher switching costs imply a slower transition to a symmetric market structu...

The rising prices of pharmaceuticals have generated considerable, and often acrimonious, debate. Yet, there is little theoretical work or empirical evidence on pharmaceutical entry-pricing strategies or on the time paths of the prices of new entrants versus incumbents. This study explores the entry pricing strategies of pharmaceutical manufacturers. Previous theoretical models have considered a...

The share price represents the company's value on market; buyers and sellers establish based quantity of demand supply shares. This research looks at how market capitalization, trading volume, BV, DER are used to analyze variations. aims understand investor behavior in fluctuating situations. method is multiple linear regression, data collection secondary data. study's results indicate a relati...

We study the static pricing problem for a network service provider in a loss system with a tree structure. In the network, multiple classes share a common inbound link and then have dedicated outbound links. The motivation is from a company that sells phone cards and needs to price calls to different destinations. We characterize the optimal static prices in order to maximize the steady-state r...