Price dynamics in a two-period reputation model
AbstractThis paper looks at the time-path of prices in a two-period modified version of the reputation model of Milgrom and Roberts(10) in which a non-standard price signalling stage game is substituted for the entry-deterrence game those authors work with. It shows that prices may rise or fall from one period to the next. Also, it shows that “bonding’’ is not possible in this environment.
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Bibliographic InfoArticle provided by El Colegio de México, Centro de Estudios Económicos in its journal Estudios Económicos.
Volume (Year): 16 (2001)
Issue (Month): 2 ()
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