The paper deals with the competitive effects of price guarantees in a spatial duopoly where consumers can search for lower prices but have to incur hassle costs if they want to claim a price guarantee. It is shown that symmetric equilibria with and without price guarantees exist but price...

We study the collusive efficacy of competition clauses (CC) such as the meeting competition clause (MCC) and the beating competition clauses (BCC) in a general framework. In contrast to previous theoretical studies, we allow for repeated interaction among the retailers and heterogeneity in their...

This paper investigates the roles of price-matching guarantee as a response to `showrooming' (quality free-riding) and as a tool for predation. Employing a duopoly vertical differentiation model, we find that price-matching guarantee raises consumer surplus but its impact on social surplus is...