We analyze dynamic price competition in a homogeneous goods duopoly, where consumers exchange information via word-of-mouth communication. A fraction of consumers, who do not learn any new information, remain locked-in at their previous supplier in each period. We analyze Markov perfect...

We introduce a dynamic price competition model for duopsony. Each buyer receives a privately observed profit shock in each period and uses a publicly observable and retroactive price to entice sellers to sell to her in the upcoming period. The price competition scheme captures sellers’...

The common marketing practice of offering subscribers enticements to switch suppliers is explored. It is shown that this type of price discrimination is the natural mode of competition in subscription markets such as long distance telephony and banking and that it prevails even when the industry...

We study a discrete time dynamic game of price competition with spatially differentiated products and price adjustment costs. We characterise the Markov perfect and the open-loop equilibrium of our game. We find that in the steady state Markov perfect equilibrium, given the presence of...

This paper studies the consequence of an imprecise recall of the price by the consumers in the Bertrand price competition model for a homogeneous good. It is shown that firms can exploit this weakness and charge prices above the competitive price. This markup increases for rougher recall of the...

We investigate the impact of consumer search and competition on pricing strategies in Germany’s electricity retail. We utilize a unique panel dataset on spatially varying search requests at major online price comparison websites to construct a direct measure of search intensity and combine...

We investigate the impact of consumer search and competition on pricing strategies in Germany's electricity retail. We utilize a unique panel dataset on spatially varying search requests at major online price comparison websites to construct a direct measure of search intensity and combine this...

Unternehmen nutzen Daten zur Optimierung von Preisen. Mit zunehmender Kenntnis individueller Kundenprofile könnte der Spielraum steigen, Individuen gezielt über personalisierte Angebote anzusprechen. Die wettbewerblichen Effekte sind ambivalent: Personalisierte Preise können zur Ausbeutung im...

Price comparison websites, where consumers can compare prices at a search cost that is close to zero, have become increasingly common around the world. Using daily information on prices, click-throughs, and the number of retailers for a sample of consumer electronics and durable goods over a...