Price-matching guarantees: Influences on pricing strategy in a market with asymmetric firms

This study analyzes the price effects of price-matching guarantees in a duopoly where consumers are heterogeneous with respect to firm loyalty, and a firm has more loyal customers than the other firm. The results show that equilibrium matching policy and pricing strategy depend on market conditions. Price-matching guarantees can result either in the form of price collusion or price discrimination.

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Year of publication:	2012
Authors:	Koh, Dong-Hee ; Moon, Junyean ; Schellhase, Ralf
Published in:	Journal of Business Research. - Elsevier, ISSN 0148-2963. - Vol. 65.2012, 11, p. 1551-1557
Publisher:	Elsevier
Subject:	Price-matching guarantees \| Price discrimination \| Consumer loyalty

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010588274