Hann, Il-Horn; Hui, Kai-Lung; Lee, Sang-Yong Tom; Png, … - EconWPA - 2005
We embed the Varian (1980) model in a broader setting that considers how switcher/loyal customer segments are … determined. Generally, customer acquisition is deterministic while pricing is randomized. The equilibrium outcome depends on the … timing of customer acquisition relative to pricing. If sellers acquire customers before setting prices, the unique …