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On the strategic choice of spatial price policy: the role of the pricing game rules Author info | Abstract | Publisher info | Download info | Related research | Statistics Iñaki Aguirre () (Universidad del Pais Vasco)
Ana M. Martin () (Universidad del Pais Vasco)
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The strategic choice of spatial price policy under duopoly crucially depends on the rules of price competition. We show that under simultaneous price competition and under leader-follower price competition (with the discriminatory firm being the leader), the pricing policy game is not, as stated by Thisse and Vives (1988), a Prisoner's Dilemma.
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Article provided by Economics Bulletin in its journal Economics Bulletin .
Volume (Year): 12 (2001)
Issue (Month): ()
Pages: 1-7
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Handle: RePEc:ebl:ecbull:eb-01l10002Contact details of provider: Postal: Economics Bulletin, Department of Economics, 414 Calhoun Hall, Vanderbilt University, Nashville TN 37235, USA Phone: 615-322-2920 Fax: 615-343-8495 Email: Web page: http://www.economicsbulletin.com
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Keywords: mill pricing ; spatial competition ; spatial price discrimination ; Other versions of this item:
Find related papers by JEL classification: L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance D4 - Microeconomics - - Market Structure and Pricing
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
Thisse, Jacques-Francois & Vives, Xavier, 1992.
"Basing Point Pricing: Competition versus Collusion ,"
Journal of Industrial Economics ,
Blackwell Publishing, vol. 40(3), pages 249-60, September.
[Downloadable!] (restricted)
Other versions: Lederer, Phillip J & Hurter, Arthur P, Jr, 1986.
"Competition of Firms: Discriminatory Pricing and Location ,"
Econometrica ,
Econometric Society, vol. 54(3), pages 623-40, May.
[Downloadable!] (restricted)
Hummels, David & Levinsohn, James A, 1993.
"Product Differentiation as a ,"
American Economic Review ,
American Economic Association, vol. 83(2), pages 445-49, May.
[Downloadable!] (restricted)
Edward C. Prescott & Michael Visscher, 1977.
"Sequential Location among Firms with Foresight ,"
Bell Journal of Economics ,
The RAND Corporation, vol. 8(2), pages 378-393, Autumn.
[Downloadable!] (restricted)
Dasgupta, Partha & Maskin, Eric, 1986.
"The Existence of Equilibrium in Discontinuous Economic Games, I: Theory ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 53(1), pages 1-26, January.
[Downloadable!] (restricted)
Philip J. Reny, 1999.
"On the Existence of Pure and Mixed Strategy Nash Equilibria in Discontinuous Games ,"
Econometrica ,
Econometric Society, vol. 67(5), pages 1029-1056, September.
Hurter, Arthur Jr & Lederer, Phillip J., 1985.
"Spatial duopoly with discriminatory pricing ,"
Regional Science and Urban Economics ,
Elsevier, vol. 15(4), pages 541-553, November.
[Downloadable!] (restricted)
Thisse, Jacques-Francois & Vives, Xavier, 1988.
"On the Strategic Choice of Spatial Price Policy ,"
American Economic Review ,
American Economic Association, vol. 78(1), pages 122-37, March.
[Downloadable!] (restricted)
Other versions: Maria Paz Espinosa, 1992.
"Delivered Pricing, FOB Pricing, and Collusion in Spatial Markets ,"
RAND Journal of Economics ,
The RAND Corporation, vol. 23(1), pages 64-85, Spring.
[Downloadable!] (restricted)
Eber, Nicolas, 1997.
"A note on the strategic choice of spatial price discrimination ,"
Economics Letters ,
Elsevier, vol. 55(3), pages 419-423, September.
[Downloadable!] (restricted)
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