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Competitive strategies when consumers are relative thinkers : implications for pricing, promotions, and product choice

Inderst, Roman; Obradovits, Martin - 2020

How should firms optimally choose prices and promotional strategies and how should they position their products when consumers are "relative thinkers"? We provide answers in a model that extends the seminal contributions of Varian (1980) and Narasimhan (1988) and derive both managerial...

Persistent link: https://www.econbiz.de/10012241980

Simultaneous and sequential price competition in heterogeneous duopoly markets : experimental evidence

Kübler, Dorothea; Müller, Wieland - 2001

We investigate simultaneous and sequential price competition in duopoly markets with differentiated products. In both …, just as predicted by the theory, whereas average follower prices are not above average prices in the simultaneous market … simultaneous-move markets whereas first movers do not. As in theory, there is a significant first-mover disadvantage when firms …

Persistent link: https://www.econbiz.de/10009617949

Reconciling Cournot and Bertrand outcomes : a review

Kirui, Kipyegon Benard - 2013 - April 2013, first draft

This paper reconciles the Cournot and Bertrand Models of oligopolistic competition, highlighting its weaknesses and giving an opinion thereafter. The pertinent question in this paper is why Cournot (1838) ignored the price and Bertrand (1883) ignored the quantity? From the review, the main...

Persistent link: https://www.econbiz.de/10010380785

Directed search and the Bertrand paradox

Geromichalos, Athanasios - 2012

I study a directed search model of oligopolistic competition, extended to incorporate general capacity constraints, congestion effects, and pricing based on ex-post realized demand. I show that as long as any one of these ingredients is present, the Bertrand paradox will fail to hold. Hence, I...

Persistent link: https://www.econbiz.de/10009686600

Competitive Price Targeting with Smartphone Coupons

Dubé, Jean-Pierre - 2016

To investigate the potential returns of targeted mobile discounts, we design and implement a large-scale field experiment involving two competing movie theaters. In the experiment, we test different forms of targeting based on real-time consumer location and past consumer behavior. A novel...

Persistent link: https://www.econbiz.de/10013002916

Price-Match Announcements in a Consumer Search Duopoly

Yankelevich, Aleksandr - 2016

Using a model of sequential search, we show that announcements to price-match raise prices by altering consumer search behavior. First, price-matching diminishes firms' incentives to lower prices to attract consumers who have no search costs. Second, for consumers with positive search costs,...

Persistent link: https://www.econbiz.de/10013008776

Jann, Ole - 2014

We show that there is a unique correlated equilibrium, identical to the unique Nash equilibrium, in the classic Bertrand oligopoly model with homogenous goods.This provides a theoretical underpinning for the so-called "Bertrand paradox" and also generalizes earlier results on mixed-strategy Nash...

Persistent link: https://www.econbiz.de/10013048838

Jann, Ole - 2014

We show that there is a unique correlated equilibrium, identical to the unique Nash equilibrium, in the classic Bertrand oligopoly model with homogenous goods. This provides a theoretical underpinning for the so-called "Bertrand paradox" and also generalizes earlier results on mixed-strategy...

Persistent link: https://www.econbiz.de/10013050787

Signalling rivalry and quality uncertainty in a duopoly

Bester, Helmut; Demuth, Juri - 2013

This paper considers price competition in a duopoly with quality uncertainty. The established firm (the `incumbent …

Persistent link: https://www.econbiz.de/10009781393

Internal conflict, market uniformity, and transparency in price competition between teams

Kurschilgen, Michael; Morell, Alexander; Weisel, Ori - 2016

compete vis-à-vis each other, and, consequently, market outcomes. Participants took part in a repeated Bertrand duopoly game …

Persistent link: https://www.econbiz.de/10011569085