The LeChatelier-Samuelson principle states that as a reaction to a shock, an agent's short-run adjustment of an action is smaller than the long-run adjustment of that action when the other related actions can also be adjusted. We extend the principle to strategic environments and define long run...

In practice, managers often face a trade-off of choosing between committed and contingent pricing under cost uncertainty because contingent pricing may increase the firm’s profit but may decrease consumer surplus and market share. This article compares the two pricing strategies under cost...