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Proponents of RPM argue that RPM helps to sustain a high level of service at the point of sale and that such a high level is efficient. This paper provides a simple model which leads to the following conclusions: 1) RPM may increase or decrease the level of service. 2) Whether the service level...
Persistent link: https://www.econbiz.de/10003380028
In this paper three issues are pursued. First, a model of capacity constrained price competition is suggested. The basic feature of this model is that a pure strategy equilibrium exists for all price subgames. Second, this permits Cournot outcomes in heterogeneous markets to be interpreted as...
Persistent link: https://www.econbiz.de/10010499032
Persistent link: https://www.econbiz.de/10009232839