DYNAMIC PRICE DISCRIMINATION WITH ASYMMETRIC FIRMS -super-*
Abstract
This paper considers variants of a dynamic duopoly model where one firm has a stronger market position than its competitor. Consumers' past purchases may reveal their different valuations for the two firms' products. Price discrimination based on purchase histories tends to benefit consumers if it does not cause the weaker firm to exit; otherwise it can harm consumers. The effect of price discrimination also depends on firms' cost differences, market competitiveness, and consumers' time horizon. The stronger firm may price below cost in the presence of consumer switching costs, with the purpose and effect of eliminating competition. Copyright 2008 The Authors. Journal compilation 2008 Blackwell Publishing Ltd. and the Editorial Board of The Journal of Industrial Economics.Download Info
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Bibliographic Info
Article provided by Wiley Blackwell in its journal The Journal of Industrial Economics.
Volume (Year): 56 (2008)
Issue (Month): 4 (December)
Pages: 729-751
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Bouckaert, J.M.C. & Degryse, H.A. & Dijk, T. van, 2012.
"Bertrand Competition with an Asymmetric No-Discrimination Constraint,"
Discussion Paper
2012-004, Tilburg University, Tilburg Law and Economic Center.
- Bouckaert, J.M.C. & Degryse, H.A. & Dijk, T. van, 2012. "Bertrand Competition with an Asymmetric No-Discrimination Constraint," Discussion Paper 2012-009, Tilburg University, Center for Economic Research.
- Bouckaert J. & Degryse H. & van Dijk Th., 2012. "Bertrand competition with an asymmetric no-discrimination constraint," Working Papers 2012006, University of Antwerp, Faculty of Applied Economics.
- Bouckaert, Jan & Degryse, Hans & van Dijk, Theon, 2012. "Bertrand competition with an asymmetric no-discrimination constraint," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/335806, Katholieke Universiteit Leuven.
- Esteves, Rosa Branca & Vasconcelos, Helder, 2010.
"Price Discrimination under Customer Recognition and Mergers,"
CEPR Discussion Papers
7683, C.E.P.R. Discussion Papers.
- Rosa Branca Esteves & Hélder Vasconcelos, 2009. "Price Discrimination under Customer Recognition and Mergers," NIPE Working Papers 23/2009, NIPE - Universidade do Minho.
- Jan Bouckaert & Hans Degryse & Theon Van Dijk, 2008.
"Price Discrimination Bans on Dominant Firms,"
CESifo Working Paper Series
2192, CESifo Group Munich.
- Bouckaert, J.M.C. & Degryse, H.A. & Dijk, T. van, 2008. "Price Discrimination Bans on Dominant Firms," Discussion Paper 2008-3, Tilburg University, Center for Economic Research.
- Degryse, H.A., 2008. "Price Discrimination Bans on Dominant Firms," Discussion Paper 2008-001, Tilburg University, Tilburg Law and Economic Center.
- Bernard Caillaud & Romain De Nijs, 2011. "Strategic loyalty reward in dynamic price Discrimination," PSE Working Papers halshs-00622291, HAL.
- Bernard Caillaud & Romain De Nijs, 2011. "Strategic loyalty reward in dynamic price Discrimination," Working Papers halshs-00622291, HAL.
- Oz Shy & Rune Stenbacka, 2011. "Customer recognition and competition," Working Papers 11-7, Federal Reserve Bank of Boston.
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