Cooper (1986) examined the equilibrium of the retroactive most-favored-customer pricing policy by using a two-period duopoly model. He showed that the most-favoredcustomer policy enables both firms to offer higher prices and to enjoy higher profits. Neilson and Winter (1992) showed that even if one firm in a price-setting duopoly adopts the most-favored-customer policy, the equilibrium does not...

We analyze a nonlinear discrete-time Cournot duopoly game, where players have heterogeneous expectations. Two types of players are considered: boundedly rational and naive expectations. In this study we show that the dynamics of the duopoly game with players whose beliefs are heterogeneous, may become complicated. The model gives more complex chaotic and unpredictable trajectories as a conseque...

Studies of gasoline prices in multiple countries have found a repeated sequence of asymmetric cycles where a sharp price increase is followed by gradual decreases. This price pattern is linked to Maskin & Tirole’s (1988) theoretical duopoly pricing game that produces a similar pattern, Edgeworth price cycles. We examine data on average daily city-level retail gasoline and diesel prices for 355 ...

in this article, we estimate the vertical price transmission through the iranian rice marketing chain by usingmonthly data from march 2000 to february, 2009 and error correction model (ecm).the causality testresults indicate that changes in the producer price clearly led changes in wholesale and retail prices. inproducer-retail and wholesale-retail models, price transmission is asymmetric but i...

the paper tries to present an improved mathematical model for distribution companies (discos) in order to solve distribution network expansion planning (dnep) problems in the presence of certain resources of distributed generations (dgs) entitled small scale gas engines in the medium voltage grids. with the aim of minimizing investment and operation costs, the recommended model combines a compr...

We study the strategic impacts of behavioral price discrimination on manufacturers and retailers in a distribution channel when there are switching costs in consumer demand. Unlike previous empirical studies of behavioral price discrimination, which rely only on differences in price elasticity across customers, our pricing model allows the strategies of channel members to additionally account f...

We examine learning by artificial agents in repeated play of Cournot duopoly games. Our learning model is simple and cognitively realistic. The model departs from standard reinforcement learning models, as applied to agents in games, in that it credits the agent with a form of conceptual ascent, whereby the agent is able to learn from a consideration set of strategies spanning more than one per...

Rice plays an especial role in Iranian households' nutrition basket. The volatilities of its price during recent years caused consumers' dissatisfaction. This paper investigates spillover effects of price volatilities (at the wholesale and retail levels) in the Guilan Province rice market. The Generalized Autoregressive Conditional Hetroscedasitic (GARCH) model was used for the monthly time per...