This paper describes a price game in which buyers’ decisions about how much and where to buy are based on different information and/or preferences. Such consumers’ behavior is likely when demand comes from public agencies and state-owned firms. Consumers in this case are said to be...

In this paper we analyze a model of price competition in a market for a homogeneous product in which consumers express a probabilistic demand. A parameter, θ, describes the degree of precision with which consumers evaluate prices. We show that, according to the value of θ, the market can...